Update January 2025: After somehow resolving my double rates issue nearly 10 years ago (see original post below) I am once again receiving an additional charge on my second stand. Here’s what I think is going on…
I live on a double stand with a single dwelling that sits across both stands. As such, the stands cannot be sold off separately and effectively constitute a single property. Nevertheless, I receive two invoices each month from the City of Joburg (COJ) – one for stand 01 and one for stand 02.
Until recently, I was being charged full rates on the account for stand 01, which displayed the current market valuation of my property, and zero rates on the second account (which displayed a market valuation of R0). This is as it should be. However, starting in November or December 2024, I started receiving a new charge of R216.72 on my second stand under the description ‘Add Section 15 of MPRA adjustment’.
Section 15 of the Municipal Property Rates Act (MPRA) sets out the criteria for exemptions, rebates and reductions on residential properties. Until recently, the MPRA stated that property owners receive a rebate on the ‘first R300 000 of market value’ of each property they own.
Last year, the COJ changed their policy so that property owners only receive the R300 000 rebate on their first property. Any additional properties now get a rebate based on just the first R15 000 of market value.
So, for example, if you own property with a specified market value of R1 million, you will only pay rates based on R700 000 (R1 000 000 less R300 000 rebate). If, however, you have a second property that’s also worth R1 million, you will pay rates on R985 000 (R1 000 000 less R15 000 rebate). I believe that this revised policy is the source of the new charge.
In other words, it seems that the COJ (or its accounts department, at least) consider a double stand to count as two properties – even when there is only a single dwelling which cannot be subdivided and sold off separately. As such, only the ‘first’ property gets the full rebate of R300 000 and the ‘second’ property gets the reduced rebate of R15 000.
It is unclear how the COJ is calculating this new charge as my account for stand 02 still lists the market value at R0.00. And any percentage of zero remains zero, even if the rebate amount changes.
In any case, from my previous experience, I was informed that the correct way to deal with this issue is to have the two stands ‘notarially tied’ so that they constitute a single property. This is a rather complicated and expensive legal process, and it is unfair to expect individual homeowners to take on this responsibility.
Instead, I think we need to communicate with our ward councillors and get them to resolve this issue with the authorities directly. Clearly, it’s a city-wide problem and it’s unrealistic for everyone to approach the COJ separately. This issue requires top-level executive action to broadly correct what is probably a careless oversight.
Then again, of course, I may be wrong about everything and the new charge is something else entirely. Either way, this is a job for our elected representatives to resolve with the authorities, in my opinion.
Hope this helps!
ORIGINAL POST (from 2012):
Do you live on a double stand? If so, you might be in for a nasty shock. The City of Johannesburg’s valuations department has suddenly initiated a process whereby each stand now receives a separate valuation, even when the double stand only contains a single dwelling.
Let me break it down for you, according to my personal situation. I live on a double stand in Highlands North (2 different ERF numbers). As such, in the eyes of the law, I own two separate properties held under a single title deed. However, my house is built across both stands and, therefore, the property cannot be subdivided.
It seems that many of the older suburbs were set up like this. And for the past 70 years or so, there wasn’t any problem. I simply received two invoices from the City – one for each stand. The first invoice contained an amount for rates, based on the valuation roll. The second invoice contained billing for water, lights, sewerage and other services but did not reflect an amount for rates (the stand was valued at zero).
This makes sense. I own one house, so I should pay once for rates. Yes? Well, apparently not. Last month, my second stand abruptly reflected a valuation of R1.2 million, with an associated fee. This is in addition to my original municipal valuation on the first stand. In effect, that means I am now paying two amounts for rates based on a property that can only be sold as a single unit.
It seems that the long-term solution to this ‘double rates’ problem is to have my two stands ‘notarily linked’, but this is a legal process that takes time and can cost several thousand rand. I was looking for a more immediate solution to what seemed to be a simple misunderstanding – it’s just common sense, isn’t it?
So, I spoke to the valuations department and they were quite helpful. My query has been sent through to various authorities and I am awaiting an outcome. I’d like to thank all the people I contacted for replying to my emails promptly and trust that, together, we can work it out.
However, this begs a larger question: what about all the other people who are living on double stands? Will they have to lodge their own individual queries, or will the department make a correction that applies to everyone? I don’t know the answer to this question but I am concerned – being the stout, civic-minded chap that I am…
So, if you live on a double stand, check your statements. And if you are getting charged double rates, please get in touch by posting a comment below. My ward councillor has suggested that, legally, the valuations department cannot just change a dispensation that has been in effect for decades. As such, a court challenge may be in order.
I truly hope that the whole mess can be sorted out without dragging lawyers into the fray, but I have been advised to start collecting a list of names of similarly affected home owners – just in case. So, do let me know if you’re in the same boat and I’ll try to ensure that we approach this affair with intelligence and cohesion. I thank you [takes bow to tremendous applause, leaves room].