The clock is ticking: don't risk overpaying on rates and taxes

Every four to five years, municipalities publish a general valuation roll (GVR), which details the municipal value of the properties that fall within their jurisdiction. This value is used to calculate the rates and taxes payable by property owners. 

The City of Johannesburg and the City of Cape Town recently published their respective 2023 GVRs for ratepayers to review.

“This is an important opportunity for property owners to check that their property is correctly valued, so that they don’t end up overpaying on their municipal rates and taxes over the next few years,” says Hayley Ivins-Downes, head of digital at Lightstone Property, a leading supplier of property valuation reports.

But the clock is ticking: Capetonian homeowners have until April 30 to inspect this roll and, if necessary, object to the updated municipal value of their property, while the deadline for Joburg ratepayers is May 5.

Details to check: market value vs municipal value

Both the municipal value and the market value are estimates of how much a property is worth.

The municipal value is assigned to a property by a municipality's valuations department. 

The market value is determined by property professionals and is a good indication of what a property could sell for in the current market. This estimate is usually based on factors such as the property's size, location, condition and even recent sales of similar properties in the area.

“There should be no discrepancy between a property owner's municipal property valuation and their property’s estimated market value,” says Ivins-Downes. 

However, there are instances when the municipal value of a property listed on GVR is higher than its market value — if that's the case, the property owner runs the risk of overpaying on their rates and taxes.

The onus is on the homeowner to check the GVR and, if there are any discrepancies, to lodge an objection with the municipality.

How the objection process works

Property owners can object if the value, description, stand or portion number, category, size or owner details of their property are not correctly listed on the GVR.

All of this information should be correct, not just to avoid paying more than necessary on rates and taxes, but to ensure no delays or discrepancies when selling the property in the future.

To lodge an objection, homeowners need to complete an objection form (usually available on the municipality's website) and provide the necessary supporting documentation.

The objection will be considered by a municipal valuer and, if the municipality finds the objection valid, it may revalue the property, potentially saving the owner a significant amount on their rates and taxes in the years to come.

Know your property's worth and get the credible report you need to support your objection

Lightstone is an independent supplier of accurate and up-to-date property data that's used by banks, estate agents, insurers and other property professionals.

For only R172.50, you can purchase a Lightstone property value buyer report^*, which will provide you with current detailed valuations and historical information about your property.

Not only will this report give you peace of mind that your property has been correctly valued on the latest GVR, but can also be used to support your objection if it hasn't.

“In fact, many property owners in areas such as Ekurhuleni, Umgeni and Knysna have used Lightstone value estimates to support their objections to their municipality's GVR in the past,” says Ivins-Downes.

For more information, to view a sample report or to purchase one, visit the EzRates by Lightstone website.

This article was sponsored by Lightstone.

_{*Lightstone's property valuation reports are informed by the company's industry-leading automated valuation model. A comprehensive legal valuation can only be provided by a certified valuer.}