1. Effect of Property Rates Legislation
CIGFARO WESTERN CAPE BRANCH SEMINAR
5 JUNE 2017

2. Disclaimer These are views from a bean counter turned debt collector
This is not a legal opinion
What works for Cape Town may not work for other municipalities
Apply your own mind
Apply your own socioeconomic situations
Seek legal advice when considered necessary

3. Farm Properties not used for any purposes
Included in MPRA prior to MPRAA 2014
Prior to MPRAA Council determined the categories (MAY)
MPRAA 2014 – MUST (effective 1 July 2022)
Regulations refers to this category
Minister had no legal right to force this category on a municipality
SC opinions for and against

4. SYSTEMS ACT SECTION 118 Clearance Certificate
Validity period of 60 days
Could make that longer to assist clients
Take deposits for validity of Clearance Certificates
Be reasonable
When challenged, back down to 60 days
If validity expires, insist on a new application from scratch

5. Wasted expenditure Kwazulu-Natal Local Division of the High Court
Legal action following the awarding of a tender
Legal opinion that the tender should be disqualified
BEC directed that the tender be considered
Decision found to be not merely irrational but bizarre
Staff refused to accept accountability and showed no remorse
Consequences of unconstitutional conduct not for ratepayers
Recovered 50% of the costs from officials involved
Those who acted correctly excluded from the costs order

6. New Developments – Be Aware
Fruitless and wasteful expenditure – society’s moral outrage
Tax resistance is a legitimate expression of dissatisfaction
Gauteng High Court decision re Eskom
Client may pay Eskom directly bypassing the municipality
Tax Laws are not Always Fair – SCA ruling
Religion- commercialisation to be curbed
Wealth, land and property tax mooted
Two spheres of Government using a property tax
Collection agent
One account in arrears - Sale-in-execution

7. Questions

8. Thank you