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Brace yourself for a potential property tax shock: How to avoid overpaying municipal rates

Do you own property in South Africa? Brace yourself for a potentially nasty surprise on your municipal bills in the form of increased property taxes. Every few years, municipalities revalue property values and, in 2021, thousands of property owners in Ekurhuleni were caught off guard with property taxes that were increased by as much as 2000% in some cases. That’s right, a residential property worth R1 million could now be worth R20 million, resulting in a whopping R14 114 per month as the new rates bill from the City of Ekurhuleni. This excludes the annual inflation-related increases on top of this over the following years.

But it’s not just Ekurhuleni. Property owners across the country face the same issue. Municipalities use two ways to increase rates: through the valuation roll and through the general annual increase in rates that is included in the municipal budget each year. The valuation roll is specific to each property and is based on the municipality’s own assumptions and processes. If you don’t take the time to view the estimated value set out by the municipality and determine whether it is accurate, you could be overpaying for years to come. 

What can you do to avoid this? First, be on the lookout for a formal notice (Section 189 notice) from your municipality’s General Valuation Roll and exercise your rights as laid out in this document. Below is a table listing some of the municipalities currently running their valuations, their deadline dates and instructions on how property owners can review their municipal valuation and potentially challenge any errors.  

It is crucial to check if the municipality’s estimated value for your property is accurate. Fortunately, we have developed a calculator at this link to estimate what your rates will be. If you find that your property's updated value is irrational and believe you can prove it, dispute the valuation and proposed rate.

It is extremely important to do this within the short timeframe that the municipality gives for this, because if you don’t, it will most likely be too late when you see the new rates on your municipal bill. In 2021, some 42 000 property owners objected to the valuation roll of the Ekurhuleni metro, saving a lot of them thousands of rands. So make sure you register your objection in time.

Don’t let yourself be caught off guard. Take action now and protect yourself from overpaying for your property rates. 

More information

A soundclip with comment by Julius Kleynhans is here. (Afrikaans) 

A soundclip with comment by Julius Kleynhans is here. (English)