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Throwback Thursday - Changes to MPRA

Date: 29-10-2015

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As you know, National Government recently (28 November 2014) gazetted an
amendment to the Municipal Property Rates Act. This amendment will have a
number of consequences for Municipalities in preparing their Valuation Rolls -
one of the most important documents a Municipality has. The Valuation Roll is
not only a record of all of the properties that fall within a Municipality’s
jurisdiction, but it represents the rates revenue base of that Municipality and
is critical to ensuring that operating revenue is maximised.



Because we know how busy this time of the year is for you we’ve taken the
liberty of summarising some of the more pertinent of these latest amendments
for you below!



MUNICIPAL PROPERTY
RATES AMENDMENT ACT, 2004 (ACT 29 OF 2014)


These MPRA amendments will become effective on 1 July 2015.



LIFE CYCLE OF VALUATION ROLLS



  • A metro municipality’s general valuation roll is valid
    for a maximum period of four years, unless the MEC for local government
    gives the municipality a one year extension.
  • A local municipality’s general valuation roll will
    remain valid for five years. The MEC for local government may extend this
    by a further two years.



COMPOSITION OF THE VALUATION APPEAL BOARD



  • A professional associate valuer without restrictions
    and with at least ten years’ experience may serve on the appeal board.
  • In addition a quorum has to have the valuer member
    present at all hearings and/or meetings of the board.



SUPPLEMENTARY VALUATIONS AND EFFECTIVE DATES



  • Clerical errors can now be corrected by way of a
    supplementary valuation.
  • The posting of a notice and not the publication of a
    supplementary valuation roll will in future determine certain effective
    dates.
  • Section 78 has been amended with regards to the various
    effective dates applicable to supplementary valuations.



The following cannot be backdated:



  • Omissions
  • Revaluations
  • Incorrectly (undervalued) property
  • Typing errors



The following can be backdated:



  • Incorrectly valued where value was above market value
  • Typing error where the value was understated.
  • Subdivisions and consolidations



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