n Local Government Bulletin - The new municipal property rates regulations : mere regulation or irrational ratios?

Volume 10, Issue 1
  • ISSN : 1561-901X



On 19 December 2007 the Minister of Provincial and Local Government published for public comment draft regulations on property rates. The draft regulations set ratios for municipal property rates on different types of properties. A key ratio that stirred much controversy was that the rate on state-owned property should be no more than 25% of the rate on residential property. This has been slammed as unconstitutional and a threat to municipalities' financial sustainability. Moreover, the draft regulations determine that rates on (categories) of properties may not be increased by more than the Consumer Price Index (CPI).

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