Municipal Rates Objections Steps | How to Object to Municipal Valuation
Ever received an official house valuation notice and felt it didn’t quite reflect your property’s true worth? You’re not alone. Many homeowners find themselves questioning the accuracy of their government valuation. The good news is that you have the right to challenge it through a municipal valuation objection.
Whether you’re preparing to lodge an objection or simply want to learn more about the process, we have prepared a guide that provides a step-by-step overview to help you navigate the intricacies of municipal rate objections in South Africa
Where it all starts
Before diving into the objection process, it’s essential to understand the key concepts.
The municipal rates objection process is governed by the Municipal Property Rates Act 6 of 2004. While the MPR Act outlines the core steps of the process in a clear and detailed way, other supplementary legal documents impact the whole process. That’s why we recommend you study the Act before getting to the objection.
You can read the whole act here, or get accustomed to some more important excerpts we highlight in this post below. However, since the legal language can be complex, we’ll translate these key sections into everyday language so you can confidently exercise your rights.
Step-by-Step Guide
Step 1. Reviewing the General Valuation Roll:
The first step in lodging a municipal rates objection is to review the general valuation roll (GVR) published by the municipality. This roll contains the assessed values of all properties within the municipality and serves as the basis for property rates. The MPR Act obliges municipalities to produce the GVR at least once every four years.
To access the valuation roll and identify potential discrepancies in your property’s valuation, visit the municipality’s website or its local office. We prepared a list with all GVRs of all municipalities; check it out here.
Step 2. Assess the Accuracy of Your Home Valuation
Compare the municipal valuation of your home with current market trends. This step is crucial as it equips you with evidence to support your claim that the government valuation deviates from your property’s true market value.
You may wish to consult a professional real estate appraiser for an accurate home valuation.
Read more: Municipal rates check
Step 3: Confirm the Timeframe for Filing an Objection
This step is very important!
Municipalities have official objection periods in which property owners can file their objections to valuations.
For example, the last GVR of the City of Johannesburg, which was produced in 2023 that’s why it is called GVR 2023, was open for inspections and objections from 15 February 2023 (the date of its first official publication) till 5 May 2023 ( the original period was till 31 March, but then it was extended to 5 May).
The City of Cape Town’s General Valuation Roll 2022 (GV2022) was opened for public inspection from 21 February to 30 April 2023.
As you might have noticed, the GVRs were issued in different years.
Due to a decentralized system of local government, the municipalities have a degree of autonomy in managing their affairs, including property valuations. That’s why each municipality conducts general property valuations independently in different years depending on their established valuation cycle.
Missing the objections window in most cases means waiting until the next valuation cycle which will happen in the next four years.
You may spot some sites stating that the GVR cycles vary from four to five years. Technically it is true because the fifth year is an extra one allowed for municipalities. However, it is an established practice that municipalities are not used to extending the cycle.
But if you missed the objection period, does it mean that you have to wait four years until the next GVR? Nope. There is a legitimate workaround that allows you to object earlier. We elaborate on “how to” in our post “How to object municipal rates if I missed the objection window”.
Step 4: Obtain and Complete the Municipal Valuation Objection Forms
Local authorities will provide objection forms specifically designed for the process of disputing a property valuation. You can typically find and download the objection form for property valuation from your municipality’s official website or request a hard copy from their offices. Ensure to fill out the form meticulously, providing all required details to substantiate your objection.
In our “GVR objections forms” page you can select your municipality and directly navigate to its objection form.
Step 5: Prepare Supporting Documentation for Your Rates Objection
Support your objection with pertinent documentation. might include your independent valuation report, photographs of your property, repair estimates for any damages, or sale prices of comparable homes in your area. The key is to provide concrete evidence that justifies a reevaluation of your property’s assessment.
Step 6: Submit the Objection Form and Supporting Documents
Submit the completed objection form along with all supporting documents within the stipulated timeframe. Confirm receipt of your submission with the municipality, either through an acknowledgement letter or a formal receipt.
Step 7: Await the Municipality’s Response
After submission, the municipality will review your objection. This process can take several months, during which an independent committee often assesses the objection. They may uphold the current valuation, or schedule a meeting for further discussion. It’s important to be patient during this time but also proactive in staying informed about the progression of your objection.
Step 8: Understand Possible Outcomes
If your objection is successful, the municipal valuation will be adjusted, and your property rates will be recalculated based on the new valuation. If the municipality does not decide in your favour, you have the right to appeal the decision. The appeals process can be complex, and it may be wise to consult with a legal expert specialising in property law.
Conclusion:
Challenging a municipal property valuation can seem daunting but it protects you from potentially overpaying on property taxes. The key actions involved –
- reviewing the valuation roll,
- obtaining an accurate home valuation,
- completing the objection form carefully,
- providing robust documentation, and
- adhering to deadlines can significantly improve the likelihood of a successful rate objection.
Remember, an informed and prepared property owner is far more likely to navigate the objection process effectively. Take the time to understand your rights, gather necessary evidence, and follow the outlined steps closely. This process not only requires persistence but also means engaging with the municipal system to ensure fair and equitable treatment for your property investment.
Excerpts from the Municipal Property Rates Act 6 of 2004
CHAPTER 6 “VALUATION ROLLS”
Contents of valuation rolls
48. (1) A valuation roll must list all properties in the municipality determined in terms
of section 30 (3).
(2) The Valuation roll must reflect the following particulars in respect of each property
as at the date of valuation to the extent that such information is reasonably determinable:
( a ) The registered or other description of the property;
(b) the category determined in terms of section 8 in which the property falls;
(c) the physical address of the property;
(d) the extent of the property;
(e) the market value of the property, if the property was valued;
(f)the name of the owner; and
(g) any other prescribed particulars.
Public notice of valuation rolls
49. (1) The valuer of a municipality must submit the certified valuation roll to the municipal manager, and the municipal manager must within 21 days of receipt of the roll –
(a) publish in the prescribed form in the provincial Gazette, and once a week for consecutive two weeks advertise media, therein a notice-
(i) stating that the roll is open for public inspection for a period stated in the notice, which may not be less than 30 days from the date of publication of the last notice; and
(ii) inviting every person who wishes to lodge an objection in respect of any matter in, or omitted from, the roll to do so in the prescribed manner within the stated period;
(b) disseminate the substance of the notice referred to in paragraph (a) to the local community in terms of Chapter 4 of the Municipal Systems Act; and
(c) serve, by ordinary mail or, if appropriate, in accordance with section 115 of the Municipal Systems Act, on every owner of the property listed in the valuation roll a copy of the notice referred to in paragraph (a) together with an extract of the valuation roll pertaining to that owner’s property.
(2) If the municipality has an official website or another website available to it, the
notice and the valuation roll must also be published on that website.
Inspection of, and objections to, rolls
50. (1) Any person may, within the period stated in the notice referred to in section 49
( 1) (a) —
(a) inspect the roll during office hours;
(b) on payment of a reasonable fee, request the municipality during office hours to make extracts from the roll; and
(c) lodge an objection with the municipal manager against any matter reflected in,
or omitted from the roll.
(2) An objection in terms of subsection (1)(c) must be in relation to a specific individual property and not against the valuation roll as such.
(3) A municipal manager must assist an objector to lodge an objection if that objector is unable to read or write.
(4) A municipal council may also lodge an objection with the municipal manager concerned against any matter reflected in, or omitted from the roll. The municipal manager must inform the council of any matter reflected in, or omitted from, the roll that affects the municipality.
( 5 ) A municipal manager must, within 14 days after the end of the period stated in the notice referred to in section 49 (1) (a), submit all objections to the municipal valuer, who must promptly decide and dispose of the objections in terms of section 51.
(6) The lodging of an objection does not defer liability for payment of rates beyond the date determined for payment.
Processing of objections
51. A municipal valuer must promptly –
(a) consider objections in accordance with a procedure that may be prescribed;
(b) decide objections on facts, including the submissions of an objector, and, if the objector is not the owner, of the owner; and
(c) adjust or add to the valuation roll in accordance with any decisions taken.
Compulsory review of decisions of municipal valuer
52. (1) If a municipal valuer adjusts the valuation of a property in terms of section 51(c) by more than 10 percent upwards or downwards –
(a) the municipal valuer must give written reasons to the municipal manager; and
(b) the municipal manager must promptly submit to the relevant valuation appeal board the municipal valuer’s decision, the reasons for the decision and all relevant documentation, for review.
(2) An appeal board must –
(a) review any such decision; and
(b) either confirm, amend or revoke the decision.
(3) If the appeal board amends or revokes the decision, the chairperson of the appeal board and the valuer of the municipality must ensure that the valuation roll is adjusted
in accordance with the decisions taken by the appeal board
Notification of the outcome of objections and furnishing of reasons
53. (1) A municipal valuer must, in writing, notify every person who has lodged an objection, and also the owner of the property concerned if the objector is not the owner, of-
(a) the valuer’s decision in terms of section 51 regarding that objection;
(b) any adjustments made to the valuation roll in respect of the property concerned; and
(c) whether section 52 applies to the decision.
(2) Within 30 days after such notification, such objector or owner may, in writing, apply to the municipal manager for the reasons for the decision. A prescribed fee must accompany the application.
(3) The municipal valuer must, within 30 days after receipt of such application by the 25 municipal manager, provide the reasons for the decision to the applicant, in writing.
Right of appeal
54. (1) An appeal to an appeal board against a decision of a municipal valuer in terms of section 51 may be lodged in the prescribed manner with the municipal manager concerned by-
(a) a person who has lodged an objection in terms of section 50 (1) (c) and who
is not satisfied with the decision of the municipal valuer;
(b) an owner of a property who is affected by such a decision, if the objector was not the owner; or
(c) the council of the municipality concerned, if the municipality’s interests are affected.
(2) An appeal by-
(a) an objector must be lodged within 30 days after the date on which the written notice referred to in section 53(1) was sent to the objector or, if the objector has requested reasons in terms of section 53(2), within 21 days after the day on which the reasons were sent to the objector;
(b) an owner of such property must be lodged within 30 days after the date on which the written notice referred to in section 53(1) was sent to the owner or, if the owner has requested reasons in terms of section 53(2), within 21 days after the day on which the reasons were sent to the owner; or
(c) a municipal council must be lodged within 30 days after the date on which the decision was taken.
(3) (a) A municipal manager must forward any appeal lodged in terms of subsection (1) to the chairperson of the appeal board in question within 14 days after the end of the applicable period referred to in subsection (2).
(b)The chairperson of an appeal board must, for purposes of considering any appeals, convene a meeting of the appeal board within 60 days after an appeal has been forwarded to the chairperson in terms of paragraph (a).
(c) When an appeal is forwarded to the chairperson of an appeal board in terms of paragraph (a), a copy of the appeal must also be submitted to the municipal valuer concerned.
(4) An appeal lodged in terms of this section does not defer a person’s liability for
payment of rates beyond the date determined for payment.
Adjustments or additions to valuation rolls
55. (1) Any adjustments or additions made to a valuation roll in terms of sections 51(c), 52 (3) or 69 take effect on the effective date of the valuation roll.
(2) If an adjustment in the valuation of a property affects the amount due for rates payable on that property, the municipal manager must-
( a ) calculate-
(i) the amount actually paid on the property since the effective date; and
(ii) the amount payable in terms of the adjustment on the property since the
effective date; and
( b ) recover from, or repay to, the person liable for the payment of the rate the difference determined in terms of paragraph ( a ) plus interest at a prescribed rate.
(3) Where an addition has been made to a valuation roll as envisaged in subsection (l), the municipal manager must recover from the person liable for the payment of the rate the amount due for rates payable plus interest at a prescribed rate.
