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16 May 2023
#15 ☔ Rainy Joburg, 🏠 property values
Good morning!
It’s been raining a lot in Johannesburg, so we asked Weather SA if that is more than usual for this time of year. More on this below. 👇
Joburg’s new property taxes come into effect in July. So do the new property valuations. Keep reading to learn how the city evaluates your property and what to do if it overvalues it.
For the next couple of editions, we will be focusing on Joburg. Let us know what you think of the change.
This week we dive into:
🏠 Property valuations and taxes
☔ Joburg’s rainy May
📆 Coming up
⭐ We have updated our mayors’ ages tool with Joburg’s new 38-year-old mayor from Al Jama-ah, Kabelo Gwamanda. This is our fifth mayoral change since the local government elections in 2021.
We'd love to hear from you. If you have suggestions or comments, please share them with me. Or complete our quick survey to tell us what you think.
Gemma
🏠 Property valuations and taxes
Property valuations are carried out by the City of Johannesburg every four years, and these determine how much you pay in property tax. Almost one million properties were assessed this year, with a total value of R1.6-trillion.
From July, homeowners will pay property tax based on the updated valuations. The annual increase will also come into effect, which is 5.3% this year.
Although two-thirds of Joburg’s properties are residential, the rates paid on industrial and commercial buildings contribute more than half of the city’s property tax.
Property taxes make up 22% of Joburg’s total revenue and are the second-biggest revenue earner for the city after electricity sales. The taxes are used for amenities like roads, public parks, libraries, clinics and recreation centres.
Why should I care about my property valuation?
Not getting an accurate valuation can have financial implications. If the municipality overvalues your property by R200,000, you will pay almost R150 more a month in property taxes. Over four years, this would set you back R7,200 – and that’s without any annual increases.
How is my property evaluated?
Computer research on sales of similar homes in your area, building plans, aerial photography and boundary lines are how the municipality assesses your property. The number of rooms, bathrooms, garages and amenities such as pools also play a role in how it is valued.
Because evaluators don’t physically visit houses, issues that may affect market value are not always taken into account. Something like rising damp would be a reason to object to the valuation of your home.
How do I check the value of my property?
You can inspect the valuation roll on this City of Joburg website. Fill in your township (read: suburb) and address, and you will be given the city's valuation of your property for 2023. You can also find it on your municipal invoice under ‘property rates’.
What do you do if there is a problem?
You can query the valuation with the city or raise an objection online. You can also contact an organisation such as Rates Watch, which will help you for a fee. If your challenge is successful, the re-evaluated figure will appear in a supplementary valuation roll.
The last time the city updated the general valuation roll in 2018, it received 50,555 objections, which was an improvement on the 86,395 raised in 2013. Rates Watch says it has received 1,020 objections from residences, businesses and farms, which is up 306 from 2018.
Does everyone have to pay property tax?
Rebates and exemptions are set by the city in line with the Municipal Property Rates Act. Not all homeowners pay property taxes – and some pay less than others:
- People living in informal settlements don’t pay property taxes.
- Pensioners over 70 whose property is worth less than R2.5-million and who earn under R19,380 a month don’t pay taxes.
- Low-income households receiving free services (10kl of water and 50kWh of electricity) can receive a rebate, which they must apply for every six months. Owners who receive old age or disability grants or are unemployed may be eligible for a rebate.
Interested to know if you qualify for a discount? A PDF of the latest property rates policy can be found here.
☔ Joburg’s rainy May
We’re all feeling particularly wet in Joburg, with the city receiving 66.4mm of rain so far this month. The wettest May was recorded 26 years ago when 46.8mm fell in a single day. Given that we’re only halfway through the month, we could very well be on track to break the record.
Rain and when Joburg gets it is a metric the city needs to gauge when stormwater drains are maintained or built and whether the city needs to find solutions to safely and quickly absorb rainwater in the summer months.
📆 What’s up next
By-elections will take place in:
💬 Quotable takeaway
‘Municipalities are expected to be self-funding.’ – The City of Johannesburg, explaining why residents pay property taxes and for services.
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