Drakenstein Municipal Policy

  • In terms of Section 15 of the Municipal Property Rates Act 6 of 2004, a municipality may set out criteria in its rates policy in respect of reductions or exemptions to property rates levied on owners of properties who are temporarily without income[1] and owners of properties situated within an area affected by a disaster,[2] within the meaning of the Disaster Management Act 57 of 2002 (“Disaster Management Act”), or who are affected by any other serious adverse social or economic conditions.
  • Likewise, in terms of paragraph 11.1 of the latest updated rates policy of the Drakenstein Municipality (“the Municipality“), No. 9 of 2019 (“the policy”), the Municipality will consider reductions to property rates, on an ad hoc basis in the event of, inter alia a property being within an area that is a disaster, as defined in the Disaster Management Act.[3]
  • The following conditions shall be considered by the Municipality when requested to consider reducing the property rates as set out above:
  • Property owners will only qualify for reduction if they are affected by a disaster as referred to in the Disaster Management Act;[4]
    • The maximum reduction that may be determined, on an annual basis, is presently 80% until it is re-determined by the Council;[5]
    • The reduction will not be given for a period exceeding 3 months, unless the Municipality grants a further extension;[6]
    • If property rates were paid in advance, the Municipality may give credit to such owner from the date that the reduction is granted until the date of the lapse of reduction;[7]
  • However, it is uncertain to what extent the Drakenstein Municipality will grant ad hoc reductions, as suggested in their policy, to owners who are adversely affected in the present national disaster. Hopefully the Municipality will utilise this opportunity to grant some relief to property owners as suggested in their policy. Although the policy suggests that reductions of up to 80% may be considered, it must be noted that the Municipality is not obliged to grant any reduction and each case will be considered on its own merits.

Antionette Rawlings

antionette@vwvh.co.za

Attorney: Litigation Department


[1] Paragraph 15(2)(c)

[2] Paragraph 15(2)(d)

[3] Read with paragarph 7.1 (c) As the president has declared a national state of disaster, the whole of South African is in a disaster area.

[4] Paragraph 11.2(b)

[5] Paragraph 11.2(c)

[6] Paragraph 11.2(d)

[7] Subparagraph 11.2(e)

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)