GOVAN MBEKI LOCAL MUNICIPALITY
Approved 2024/2025 Tariffs Book
Property Rates
2024/2025 FINANCIAL YEAR TARRIF BOOK
1. That, in terms of Section 2, 7, 8 and 14 of the Local Government: Municipal Property Rates
Act 6 of 2004 (“the Act”), read with Section 4(1)(c)(ii) and 11(3)(i) and 75 A of the Local
Government: Municipal Systems Act 32 of 2000, the following rates in Rand BE LEVIED for
the financial year 1st July 2024 to 30th June 2025, on the market value of property or on the
market value of a right in property within the area of jurisdiction of the Govan Mbeki
Municipality as appearing in the valuation roll, in respect of the various categories of properties
set out below:
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2024/2025 FINANCIAL YEAR TARRIF BOOK
Rates Category Additional Land Use Reduction & Rebates Tariff Tariff
Description: Financial 2023/24 2024/25
System
BUSINESS AGB-Farms Business & Business &
Commercial Commercial – non- None 0.027718 0.021807
agricultural farms
used for business
purposes
BUSINESS SCP-Private Schools or
Institutions Institutional None 0.027718 0.021807
BUSINESS INS-Institutions Institutional
0.027718 0.021807
Agricultural/Farming properties not used for bona fide farming purposes shall be rated according to the actual use thereof;
BUSINESS BUS-Business & Business &
Commercial Commercial –
BUS-Business & (Trading) None 0.027718 0.021807
Commercial Business
IND-Industrial
Industrial
INDUSTRIAL IND-Industrial Industrial None
0.027718 0.021807
Properties in this Categories includes-:
I. Properties zoned for business, commercial and industrial purposes;
Properties zoned general, special or undetermined which is used for business, commercial or industrial purposes;
AGRICULTURAL FAR-Farms Agricultural AGRICULTURAL REBATES MPRA
Agriculture (Agricultural Purpose) Rebate 55% 0.002392 0.002509
Properties in this category is limited to properties zoned for agricultural/farming and used predominantly for bona fide farming purposes with the property owner
deriving his/her principal source of income from the produce of land /stock farming on such property. This category excludes properties used for purposes of
eco-tourism and/or game farming, equestrian estate and non-edible farming.
MULTIPLE RSF - Recreational &
PURPOSE sporting Facilities Recreational None 0.027718 0.021807
I. Properties used for game farming and/or eco-tourism;
II. Properties zoned private used for recreational or sporting facilities;
PUBLIC SERVICE GOS-State Owned Schools
PURPOSES Institutional None 0.027718 0.021807
I. Properties owned by the State is rateable and will be categorised according to the zoning of the property;
II. If property owned by the State is zoned for the provision of residential accommodation, the rates must, after presentation of a Certificate of Occupancy,
be levied in terms of the residential tariffs; and
III. Only use classified as State as defined in this policy, will be rated in accordance with the tariff determined for State owned properties.
PUBLIC SERVICE
PURPOSES GOV-State Owned Institutional None 0.027718 0.021807
I. Properties owned by the State is rateable and will be categorised according to the zoning of the property;
II. If property owned by the State is zoned for the provision of residential accommodation, the rates must, after presentation of a Certificate of Occupancy,
be levied in terms of the residential tariffs; and
III. Only use classified as State as defined in this policy, will be rated in accordance with the tariff determined for State owned properties.
MULTIPLE PURPOSE ResCon – Residential
Consent Use Multi-Purpose None 0.014354 0.015057
A consent use is an extended right to use land or to erect and use a building on the land granted in terms of an applicable T own Planning Scheme;
provided that-:
I. Any property zoned for residential purposes in respect of which a consent use has been granted for any business, commercial and/or industrial
purpose shall be rated as residential with consent use;
II. If a consent use is granted, the category of the property concerned will be updated in the valuation roll or supplementary valuation roll, as the case
may be, to reflect residential with consent use;
III. If a consent use lapse, falls away by the efflux ion of time, is withdrawn or ceases to be applicable for any other reasons, the owner of the property
concerned may apply to the Council for the re-instatement of the residential rate. If approved, the residential rate shall be re-instated as from the date
that Council is satisfied that the property is being used for residential purposes only in terms of the zoning thereof;
IV. Where a residential property with a market value less than that specified in the threshold (60 000) is partially used for non-residential purposes, such
property will remain in the category of residential; and Consent use granted on any property other than referred to in (i) above will result in that
property being rated at the tariff applicable to the purpose of the consent within the range of property categories set out in the Property Rates Policy.
MINING MIN-Mining & Quarries Mining None 0.027718 0.021807
Properties used for mining purposes or purposes incidental to mining operations must be rated as if zoned business and/or commercial.
MUNICIPAL MUN-Municipal Institutional STANDARD REDUCTION AND
REBATES MPRA (Municipal): 0.009571 0.010040
Rebate 100%
All properties owned or vested in the Council are not rateable.
MULTIPLE PURPOSE MUPR-Multiple Purpose
Residential Multipurpose None 0.013789 0.013789
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Where a property’s zoning allows more than one permitted use and where the use of the property is used dominantly (Fifty plus one percent) for residential
purposes the entire property will be rated in accordance with the residential tariff. Only if the property owner submits a declaration duly certified by a registered
town planner as to the purpose the property is being used for, so that it can be rated accordingly. However the residential rebate will not apply.
MULTIPLE PURPOSE MUPR-Multiple Purpose
Business Multipurpose None 0.014354 0.015057
Where a property’s zoning allows for more than one permitted use and where the use of the property is used dominantly (Fifty plus one percent) for business
and commercial purposes the entire property will be rated in accordance with the business rate.
PUBLIC BENEFIT PBO-Public Benefit
ORGANISATIONS Organisations Institutional 0.002392 0.002509
Properties in this category shall be rated according to the prevailing nationally promulgated rates ratio based on usage of property subject to-:
I. The Public benefit organisation providing the Council with 3 years audited financial statements and can prove to the Council that it is not in the
financial position to pay the full rates;
II. A Public benefit organisation is required
III. Any property not falling within the ambit of bullet number (I) shall be deemed to be business and commercial for the purpose of levying a rate.
PUBLIC SERVICE POS-Public Open Space STANDARD REDUCTION
PURPOSES Open Space AND REBATES MPRA 0.009571 0.010040
(Municipal): Rebate 100%
CONSERVATION / STANDARD REDUCTION
NATURE RESERVE PRO-Protected Areas Conservation AND REBATES MPRA 0.009571 0.010040
(Protected Areas): Rebate
100%
PUBLIC SERVICE
PURPOSES PRR-Streets/Roads Streets 0.009571 0.010040
PUBLIC SERVICE PSI-Public Service STANDARD REDUCTION
INFRASTRUCTURE Infrastructure Utilities AND REBATES MPRA 0.002392 0.002509
(Infrastructure)
Property falling within this category shall be rated at the prevailing ratio as promulgated by MPRA Regulations.
PRIVATE TOWNS
PVT-Private Town Open Space Rates Policy Rebate 75% 0.009571 0.010040
RESIDENTIAL RES-Residential Residential STANDARD REDUCTION AND
RES-Residential Residential REBATES MPRA (Residential): 0.009571 0.010040
Reduction
INF-Informal Residential Residential
R 15, 000.
Rates Policy Rebate R45,000
Residential Property shall include-:
I. Properties zoned and used for residential purposes but excluding any business or commercial zoned properties with a residential component or
residential with consent use;
The Council will not levy a rate on the first value up to R60 000 of the market value as per the Valuation Roll of Residential Properties, as follows-:
• On the first R15 000 on the basis set out in Section 17(1)(h)of the Municipal Property Rates Act (Act No.6 of 2005); and
• On the balance of the market value up to R45 000 in respect of residential properties, provided that Council may from time to time during
its annual budget process contemplated in Section 12(2) of the Municipal Property Rates Act determine, as threshold, the amount to be
deducted from the market value of residential properties as a result of which rates will only be determined on the balance of the market
value of such properties after deduction of the threshold amount.
Where a property is zoned institutional but the actual usage is residential the owner of such property shall be required to apply to the Council in writing for the
levying of property rates at a tariff lower than that applied to the business, commercial and industrial category. The Council has the right to call for documentary
evidence and/or conduct a physical inspection of the residential, the scale of residential property value reductions and rebates will be applicable to such
properties.
RESIDENTIAL UDT-Unregistered Undetermined
0.009571 0.010040
PLACE OF WORSHIP STANDARD REDUCTION AND
WOR-Places of Worship Institutional REBATES MPRA (Places of 0.009571 0.010040
Worship): Rebate 100%
Properties in this category refers to property registered in the name of and used primarily as a place of public worship by a religious community, including an
official residence registered in the name of that community which is occupied by an office-bearer of that community who officiates at services at that place of
worship.
MULTIPLE PURPOSE AER-Accommodation Residential None
Establishment 0.014354 0.015057
A dwelling house which is used for the purpose of letting individual and family rooms for residential accommodation, with or without meals, and which exceeds
the restrictions of a bona fide residential dwelling.
VACANT LAND
0.009571 0.010040
2. That, the rates levied in terms of paragraph 1 above SHALL BECOME DUE and PAYABLE in
twelve equal instalments on fixed days for twelve consecutive months, these being the due date
stipulated in the account sent to the ratepayer.
3. That, interest at prime WILL BE CHARGED per month or part thereof on all arrear assessment
rates.
4. That, in terms of Section 15(1)(b) of the Local Government: Municipal Property Rates Act, No
6 of 2004, read with Council’s Property Rates Policy, the following reduction in market value
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and rebates BE GRANTED on the rate levied for the Financial Year 2024/2025 to any owner
of rateable property in the following circumstances:
➢ In terms of Section 17(h) of the Local Government: Municipal Property Rates Act, No 6 of
2004, the impermissible value of the market value of a property assigned to the residential
category in the valuation roll or supplementary valuation roll, be determined as R 15,
000. In addition to this rebate, a further R 45, 000.00 reduction on the market value of
a property will be granted in terms of the Councils own Property Rates Policy.
➢ Indigent Households – Owner of residential property, registered in terms of Council’s
approved Indigent Policy, be subsidized in accordance with the Indigent policy and will
not form part of a rebate in terms of the MPRA.
➢ Child-headed households – That a child-headed household registered in terms of
Council’s approved Indigent Policy, be subsidized in accordance with the Indigent policy
and will not form part of a rebate in terms of the MPRA.
➢ Aged/Pensioners reduction, Disability grantees and Medically Boarded persons –
that in addition to the reduction in terms of Section 17(h) of the Local Government:
Municipal Property Rates Act, No 6 of 2004, subject to the requirements as set out in the
Council’s Property Rates Policy, an additional rebate be granted in respect of sliding scale
based on average monthly disposable earnings:
• The applicant must:
a) Be the registered owner of the property or registered as “Life right use” tenant in the
Deeds office;
b) Produce a valid identity document;
c) Must at least be 60 years of age upon application, provided that where couples are
married in community of property and the property is registered in both their names,
the age of the eldest will be the qualifying factor, or approved disability grantee, or
approved medically boarded person;
d) Not be in receipt of Indigent subsidy as per Council’s indigent register;
e) Must reside permanently on the property concerned which consists of one dwelling
only and no part thereof is sub-let;
f) Confirm the aforementioned details by means of a sworn affidavit and/or latest
income tax assessment;
g) On approval, the following rebates will be applicable:
Average Monthly Earnings in Respect of Preceding 12 Months Rebate
R 0.00 to R 2, 500.00 100% rebate on Property Rates
R 2, 500.00 to R 3, 500.00 80% rebate on Property Rates
R 3, 500.00 to R 4, 500.00 60% rebate on Property Rates
R 4, 500.00 to R 5, 500.00 40% rebate on Property Rates
R 5, 500.00 to R 7, 500.00 20% rebate on Property Rates
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h) That the minimum “average monthly disposable earnings” be adjusted annually and
effective in accordance with National Government Budget announcement in respect
of state pensioners.
➢ Municipal – That non-trading service be exempted from paying of property rates.
➢ Sporting Bodies – used for the purpose of amateur sport and any social activities which
are connected to sports: 90% rebate in respect of the amount levied as rates on the
relevant property but subject to existing agreement between club and Council not
determining a different position.
➢ Welfare organisations registered in terms of the National Welfare Act, 1978 (Act No 100
of 1978), 100% rebate in respect of the amount levied as rates on the property.
➢ Public Benefit Organisations/Non-Governmental Organisations (NGO’s) and Cultural
Organisations approved in terms of Section 30 of the Income Tax Act (Act No 58 of 1962),
read with Items 1, 2 and 3 of the Ninth Schedule to that Act, 100% rebate in respect of
the amount levied as rates on the property.
➢ Protected areas/Nature reserves/Conservation areas – that protected areas/nature
reserves/conservation areas be exempted from paying of property rates.
➢ Private Schools, Universities, Colleges and Crèches:
1. Private (independent) primary and secondary schools (regardless of whether
subsidized or not), registered as educational institutions, a rebate of between 70%
and 100% in respect of the amount levied as rates on the relevant property, subject
to prior application and submission of prior years’ audited financial statements.
Rebate will be adjusted negatively in accordance with percentage ratio between net
profit and gross income in the following categories
Net Profit after Tax Percentage Net Rebate Percentage
0.00% to 10.00% 100%
10.01% to 20.00% 90%
20.01% to 30.00% 80%
30.01% to 40.00% 70%
2. Private (Independent) Universities and Colleges, registered as educational
institutions not subsidized by State, 20% rebate in respect of the amount levied as
rates on the relevant property.
3. Crèches, registered as educational institutions, 100% rebate in respect of the
amount levied as rates on the property.
➢ Agricultural Rebate (Property used for Agricultural Purpose)
Up to 55% rebate may be granted to qualifying agricultural properties based on the extent
of services supplied to such properties in general, and the contribution of agriculture to
the local economy, in terms of Subsection 3(4) of the Local Government: Municipal
Property Rates Act (Act No 6 of 2004)
The percentage is based on the following criteria:
No Municipal Roads next to the property 7.5%
No Municipal Sewerage to the property 7.5%
No Municipal Electricity to the property 7.5%
No Refuse removal provided by the Municipality 7.5%
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No Water is supplied by the Municipality 20.0%
The contribution of agriculture to the local economy 5.0%
➢ Privately owned towns fully developed by the owner
The Municipality grants an additional rebate, which applies to privately owned towns
serviced by the owner. The 75% rebate will be granted on residentially and non-
residentially zoned properties that are not serviced by the Municipality but subject to the
following conditions:
i. That no engineering certificate has been issued on the property with a view to a
sale/transfer taking place.
ii. Title Deed must not have been transferred to the owner.
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