Is the massive hike in municipal rates and taxes an error, or a deliberate means of increasing the income of the Mangaung Metro?
This is what local community organisation OurSA wants to know with regards to property rates and taxes in the metro.
Johan Snyman, a director of OurSA, says they have collected municipal accounts from 228 property owners in Mangaung thus far, mostly residential, from which they could determine that residents pay on average 32% on property tax, rather than the 6% that was set in the budget.
“With the increase of the valuation of properties according to the newly published valuation roll, combined with the increase in municipal tax at the beginning of July, owners of properties in Bloemfontein are paying much more than what was approved by the Mangaung Metro in the 2022-’23 budget,” confirms Snyman.
On top of that, owners of properties in the metro are paying more for property taxes, compared to the situation of property owners in some other metros in the country.
“The metro approved a budget increase of just under 6% on residential property tax, and 2,4% on sanitation. In fact, the property tax increased by on average 32% and sanitation increased on average of the 228 bills collectively by 24%. What we want to know is if the massive hike in taxes is an error, or a strategy by the metro to increase its income.
“OurSA has already met with the municipality. After our meeting they requested three weeks to investigate. After two months, we are still waiting on their feedback. We are now gathering more information to fight this injustice.
“What is supposed to happen during a year in which the new valuation roll is published, is that an adjustment has to be made to compensate for the increase in property values. The valuation roll is adjusted every five years. The adjustment was done during the 2013-’14 budget year, but not during 2017-’18 or 2022-’23.
“We want to mobilise the community with the goal of taking legal action to rectify this.”
Some of the bills show that a property owner in a neighbourhood like Wilgehof pays 30% more for sanitation and 35% more for property tax after the average valuation increased by 27%. This was for three properties.
The average value of 107 properties in Fichardtpark was raised by 17%, with an average of 21% more for property tax and 18% more on sanitation.
The average increase in valuation for 43 properties in Olive Hill Estate was 20%, with owners paying 31% more on property tax and 24% more for sanitation.
OurSA asks property owners to submit their municipal accounts for June and July to get a clear picture of these increases.
“We work with real numbers, so this is no estimate.”
They are also working together with neighbourhood associations to gather information on this matter.
People can send their June and July bills to c@oursa.co.za.
