The Nelson Mandela Bay Municipality in their 2024/25 budget itemised the following as being funded by Property Rates.
Property rates fund the costs associated with the provision of general services, such as recreational, library, safety & security, and roads and storm water services, etc.
Average increases on property rates revenue are effected from 1 July each year.
The property rates increases are mainly influenced by the following:
- Employee related costs increases.
- Creating a Provision for Long Service Awards and Long Service Bonuses based on an Actuarial assessment.
- Costs of servicing existing external borrowing to fund all loans taken by Council for various projects.
- Providing for debt impairment.
- Operationalisation of the previously approved commitments by Council, such as insourcing decisions.
- TASK implementation, amongst others.
The following provisions in the Property Rates Policy are highlighted:
The first R15,000 of the market value of a property used for residential purposes is excluded from the rateable value (Section 17(h) of the MPRA).
100% rebate will be granted to registered indigents in terms of the Indigent Policy / Assistance to the Poor Policy, as approved by Council.
Pensioners, physically and mentally disabled property owners of rateable property may on submission of an application be granted a rebate. The rebate will be granted on a sliding scale basis with the income levels and corresponding percentage reductions being determined by Council in its annual budget.
In this regard the following stipulations are relevant to the applicant:
(a) must be a natural person.
(b) be the owner of the property.
(c) occupy the property as his or her normal residence or where the owner is unable to occupy the property due to no fault of his/her own, the spouse or minor children may satisfy the occupancy requirement.
(d) produce certified copy/ies of owner/s’ bar-coded identity document.
(e) – pensioners: be at least 60 years of age on 1 July of the financial year concerned; or if the owner turns 60 during the year the rebate will be granted on a pro rata basis from the date on which the applicant turned 60. Disabled: be in receipt of disability grant / pension and submit proof and nature of disability e.g. letter from doctor with application.
(f) be in receipt of a total gross annual income (as defined in Part 2 of the policy), excluding medical aid contributions and child support/grant not exceeding a value as determined by Council in its annual budget; submit pension statements, previous 3 months (or the number of months determined necessary by the Chief Financial Officer (CFO) bank statements from all bank and investment accounts of owner and spouse, and proof of total gross annual income of any other persons living on the property (not just rental 19 received). All documents provided must clearly state who it is for – documents which do not reflect person’s name or ID. No. will not be considered.
(g) not be in receipt of an indigent subsidy.
(h) provide a certified affidavit declaring any assistance from any other sources. Assistance received from family members not residing on property, will not however be included in the calculation of total household income.
(i) provide a certified affidavit to explain any once-off monies received e.g. gifts, donations, etc;
(j) ensure that his/her accounts are not in arrears (or arrangements made to pay all outstanding amounts) before applying for the rebate and continue to pay the rates account in full until rebate is granted as no interest will be reversed.
(k) a usufructuary will be regarded as the owner.
(l) the criteria of a natural person may be waived at the sole discretion of the municipality to allow for a property owned by a trust where the total number of beneficiaries meets all of the other requirements of this policy; and provided further that the gross monthly income of all persons residing on that property be added to the gross monthly income of the beneficiaries staying on that property.
(m) owners qualify for only one rebate per year, if financial circumstances change, they can only apply for future years.
Sporting organisations, the sole purpose of which is to use the property owned/leased by them for sporting purposes, whether for gain or not, may qualify for a rebate, with amateur bodies being granted 100% and professional bodies 40%. Any profits earned must be invested in the betterment of the organisation and not be for private gain. Audited financial statement must be provided, if however, the sporting body does not have audited financial statement reasons therefore must be provided on the clubs’ official letterhead.
If the usage of a property changes during a financial year, the rebate applicable will be reduced pro rata for the balance of the financial year.
All accounts of the applicant must be up to date or arrangements must be made to pay any outstanding balances before any rebate will be granted. The applicant must continue to pay the rates account in full until the rebate is granted as no interest will be reversed.