T A B L E 2 . 4 Elements of Local Revenue
Variable
20.2% (more than 30% in urban areas)
No. It is raised and used locally in category A and B municipalities
Variable. The implementing legislation specified that a taxing authority could impose different rates for each tax for different types of enterprise, subject to the concurrence of the national minister of finance.
7.1%
No. The tax was raised and used in category A and C municipalities. It is being replaced by national grants in 2006, and the government is considering new tax instruments for the longer term.
Rate
Property rates
Has varied in different parts of the country, but a new act will more consistently use market value of land and buildings as the base. Exclusions include public infrastructure, crops, equipment, mining, beneficiaries from land reform, and tribal land.
RSC levy (abolished from 2006)
Business turnover and payrolls.
69
Intergovernmental revenue sharing?
Base
Local Government Organization and Finance: South Africa
Contribution to local revenue, 2002/03
Revenue
(continued)
