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Objecting to Residential and Commercial Property Rates Valuations

The most recent general valuation was conducted by the Nelson Mandela Bay Municipality (“NMBM”) in 2017. General valuations are conducted by the NMBM every 4 years, with the next general valuation to take place in 2021.

A property owner will receive a Section 49 – Public Notice of the General Valuation Roll (“Section 49 Notice”) in respect of the Local Government: Municipal Property Rates Act No. 6 of 2004 (“MPRA”) from their local authority. The purpose of a Section 49 Notice is to advise the property owner of the valuation placed on their property as determined by a particular general valuation conducted in terms of the MPRA.

The Section 49 Notice lists the following information concerning the property:

  • Property description (Erf number and suburb);
  • Address of the property;
  • Category (Business and Commercial or Residential);
  • Land extent in square metres; and
  • Market value placed on the property in terms of the most recent general valuation.

Should the property owner be unhappy with the valuation contained in the Section 49 Notice the property owner or their attorney must prepare and lodge an objection to the Section 49 Notice.

Documents to be included in the objection include:

  • An “Objection Form B: Properties other than Residential or Agricultural” or a “Objection Form A: Residential” (attached to the Section 49 notice by the NMBM), completed and signed by the property owner or their attorney;
  • A Windeed report reflecting owner information and general information relating to the property;
  • A signed Power of Attorney, if required;
  • A detailed motivational report setting out the reasons for the objection; and
  • Aerial and ground view photographs of the property.

The objection is sent to the offices of the Municipal Manager of the NMBM. The Municipal Manager’s offices will acknowledge receipt of the objection and notify the property owner that an outcome will be reached in due course. Thereafter, the Municipal Valuer’s Decision is communicated to the property owner reflecting an adjustment or confirmation that the market value of the property is retained.

Should a property owner or objector not agree with the Municipal Valuer’s findings, an appeal must be lodged to the NMBM’s Appeal Board within 30 days after the date on which the written notice was sent to the property owner or objector. The prescribed Appeal Form is available on the NMBM’s website.

Documents to be included in the appeal application include:

  • An Appeal Form, completed by the property owner or their attorney;
  • A signed Power of Attorney, if required;
  • A detailed motivational report setting out the reasons for the appeal; and
  • Aerial and ground view photographs of the property.

The date for the appeal hearing is set by the Valuation Appeal Board of the NMBM. An attorney is to obtain a consent letter from their client to argue the appeal on their client’s behalf. The consent letter is furnished to the Chairperson of the Valuation Appeal Board at the commencement of the appeal hearing.

After the conclusion of the appeal hearing, the Valuation Appeal Board furnishes the property owner with a letter advising of the market valued assigned to the property which represents a fair market value of the property at the time the general valuation.

The Valuation Appeal Board determines the market value of the property based on the evidence heard at the Valuation Appeal Board hearing as well as the prevailing market prices obtained by willing buyers from willing sellers for properties in the area during the general valuation period.

When arguing appeals for residential properties, the property owner or their attorney argues the appeal based on a comparative analysis of surrounding properties that were sold during recent times. Current market values of properties that were constructed around the same period of the subject property are compared with the market value of the subject property are also taken into consideration when arguing for a reduction in the market value of the subject property.

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