Carol Paton Writer at Large

Municipalities will pass on the full cost of providing new infrastructure to property developers and owners in the future, if draft legislation published by the Treasury is passed by parliament.

The Treasury published the Municipal Fiscal Powers and Functions Amendment Bill last week to introduce uniform “development charges” for the provision of water, sewerage, electricity, municipal roads, storm water, gas and solid waste collection and removal. The intention of the bill is to enable municipalities to increase the revenue collected through the charges and to ensure that those who benefit pay for these costs, rather than existing rate payers.

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