MUNICIPALITIES recently announced their property rates for the financial year which starts on 1 July.
The Drakenstein Municipality has set its commercial property rate at 0,822 cents in the rand, while the residential rate will be 0,49 cents in the rand, and agricultural land owners pay 0,123 cents in the rand.
According to the municipality, property owners whose valuations have increased by more than 90% since the previous valuation can expect an above average increase in property tax from July. Some residents of smaller properties have reported estimated increases of 20% to 40% in their property tax.
Services (water, refuse removal and sewerage) increase by 7,5 to 10%, except for electricity, which is set to increase by 31% from 1 July.
* Businessmen expect a few sparks at the annual City meets Business Symposium after the Cape Town City Council brushed aside objections by the Cape Town Regional Chamber of Commerce and Industry to its decision to increase rates on commercial buildings by almost double the rate increase on residential property.
At the time the Chamber said the Council was taking the “easy option” because commercial property owners had effectively been disenfranchised, despite the fact that they contribute nearly half the City’s rates income.
The symposium, which is organised by the Chamber, takes place this year on July 28 at the Cape Sun Hotel.
It was designed to improve communication between the municipality and business and has proved to be extremely successful. It has given business a better understanding of the challenges faced by the City while the Council has already implemented many of the suggestions made by business.
Jeremy Wiley, President of the Chamber, said, “Commercial property owners and business people play a huge role in the development of the city and the meeting presents one of the few opportunities for formal discussions with the Council.”
He said this was particularly important as there had been murmurings of a new tax on business as yet another replacement of the discredited RSC levy. Other problems likely to be discussed in this year’s symposium include unnecessary red tape, electricity supplies and tariffs as well as transport and 2010 issues.
