Zoutpansberger 24 July 2020

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Z

outpansberger

24 Julie 2020

News with an independent soul

www.zoutpansberger.co.za

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Joubertstraat 16B Louis Trichardt TEL: 516 4996/7/8

Municipalities’ salary burden starting to crush taxpayers - page 3

Jaargang 36 Vol.29

Nie almal so gelukkig om van Covid-19 te herstel nie - bladsy 4

ISSN 2409-2835

Audited Distribution Figures

29

9 772409 283001

Rates shock looming By Anton van Zyl The Makhado Municipality intends to increase assessment rates on property with as much as 42,85%, effective from 1 July this year. For residential properties in town, the proposed increase is 19,05%. This steep increase in rates seems to contradict the announcement of the mayor, Cllr Samuel Munyai, that increases would be limited to 4,6%. Even the notice of municipal manager Freddy Tshivhenga (that appears elsewhere in this edition) states that: “The general purport of the Council Resolution is a 4.6% increase of the existing rate in the rand for respective categories of properties based on the valuations recorded in the 2018-2023 Valuation Roll…” The council resolution, however, paints a completely different picture. For residential properties, the rate changes from R0,0084 per rand of the valuation of the property to R0,01. The rebate of R27 496,30 goes up by 4,59% to R28 761,10. On business property, the escalation is 12,07%, taking it from R0,0116 to R0,013. No rebate is given on business property. The biggest increase is on agricultural land. Here the rate spikes from R0,0021 in the rand to R0,003, an effective increase of 42,85%, and no rebate is applicable either. The figures were initially thought to have been a mistake, but this appears not to be the case. The

municipality’s spokesperson, Louis Bobodi, was asked to ascertain the figures and send them through, confirming that this was not a belated April fool’s joke. In the Makhado Municipality’s budget documentation, R79,42 million had apparently been collected from property rates in the past year. The municipality increased this amount by 4,6%, and for 2020/21, the income is expected to be R83,07 million. The only difference between the latest council resolution and that of last year appears to be the inclusion of a rate structure for property used for public-service purposes (i.e. crèches and schools), public-benefit organisations and public-service organisations. The rates for these categories vary between R0,003 and R0,004 in the rand. No explanation was provided as to why council had opted to increase the rates on certain categories of property so drastically yet only expect an increase of 4,6% in income for assessment rates. Questions were put to Bobodi, the council’s spokesperson, but at the time of our going to press clarity could not be obtained. One possibility is that the council resolution made use of rounded figures, which may not seem like a big deal, but make a massive difference when the assessment amounts are in the millions.

How much will the ratepayers now pay? To judge how the latest rate increases will affect taxpayers in

Carel Hammann Cell: E-mail:

HAMMANN PROPERTIES

082 923 1620 property@ hmlegal.co.za Address: 131 Krogh Street Louis Trichardt 0920

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a town such as Louis Trichardt, an average value of R1,2 million for a residential property was used. The house is assumed to be used for residential

purposes only (i.e. not a guest house or part-time office). The past year, such a homeowner would have paid R820,75 in property

tax per month. Should the new rates come into effect, the same homeowner will pay R976,03, an increase of R155,28. (Contd on P2)

Intersection claims more casualties

Traffic flow at the traffic light at the N1/Songozwi Street intersection was severely disrupted on Wednesday morning amidst peak traffic, following a collision between two bakkies. One of the bakkies completely uprooted one of the traffic lights after crashing into it subsequent to the initial collision. According to the Makhado police’s spokesperson, Const Irene Radzilane, the drivers of both bakkies, as well as a passenger in one of the bakkies, were injured during the accident. She said that the police were investigating a case of reckless or negligent driving.


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