Bulk levy hits hard
2009-08-06
THE implementation of the bulk infrastructure contribution levy (BICL) instituted by Drakenstein Municipality is a new form of taxation which was implemented without proper notice, say members of the Boland Chapter of the South African Institute of Architectural Technologists (SAIAT) that gathered in Paarl last week. Since January, the new levy can cost property owners as much as R36 000 for extensions to their property. This pro rata levy is payable by developers on new property developments, as well as on any existing property (valued at more than R120 000 or where the footprint is larger than 120 square metres), which is extended or subdivided for a second dwelling or granny flat. The minimum levy is R3 676 (including VAT), increasing on a sliding scale and amounting to as much as R36 000 for an average middle-class home. The levy is used to fund the infrastructure for additional water, sewerage and electricity to the property, as this places an additional burden on services. At the meeting technologists said that this levy was not actually linked to the addition of services, but to the size of the area added on to an existing building. “This is just another form of taxation,” spokesperson Bernard Frey said. “This fee is separate from the normal plan scrutiny fees and the levies which were payable on plan approval are now payable at plan submission,” he said. The institute is concerned that this levy will lead to job losses in the building trade. “It will affect not only draughtsmen, but also the smaller builders and architectural offices. “If we link this levy with the rising scrutiny fees and long approval times, the industry will not survive. “We agree that there is a need to fund the upgrading of existing services, but the plan on the table has not been thought through.” The organisation is planning to liaise within the industry to gain co-operation in any steps which may be taken against the municipality. Drakenstein is the only local authority in the Western Cape which has raised such a levy on building plans.
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