OUTA is urging property owners in the City of Johannesburg to support their petition asking the mayor and city manager to limit property valuation increases.
The Organisation Undoing Tax Abuse (OUTA) wrote to the City of Johannesburg in June questioning the credibility of the valuation method used in the General Valuation Roll 2023 (GVR2023). OUTA asked for the bills of more than 40 000 ratepayers who have objected against the City’s valuation of their properties, be suspended until the objection process is finalised.
So far, OUTA’s request has fallen on deaf ears.
“It seems that the City has steamrolled ahead with unreasonable property valuation increases on top of the 2% property rates increase that came into effect in July 2023,” says Julius Kleynhans, OUTA’s Executive Manager for Social Innovation. “This has led to a public outcry, since South African consumers are already under massive financial strain. Property owners in Johannesburg is no exception.”
According to OUTA’s extended survey to determine property valuation increases by the City, Joburg residential property values have been increased by an average staggering amount of 37%! “This is way beyond reality and far from fair. Property market specialists have put the average property value increases in Joburg at 9% over the past 5 years. We need all property owners who have adversely been affected by the City’s valuations to please support this initiative and to sign the petition,” Kleynhans added.
OUTA and concerned property owners in Johannesburg are uniting to formally request the City of Johannesburg to take immediate action by limiting all increases to a maximum of 9%, until the objection, appeal and section 78 request processes are fairly concluded.
By signing the petition, property owners will call on the Mayor and City Manager to:
Limit all property valuation increases to a maximum of 9%, until the objection, appeal and section 78 request processes have been fairly concluded;
Adjust the 2% property rates tariff increase to -2,5% to ensure the City does not receive an overall income exceeding CPI; and
Increase the property value rebate on the first R300 000 (was R350 000) to R380 000.
OUTA indicated that a formal petition to the Mayor and the City Manager is the correct next step to follow to allow the public to engage with the City on such an important matter. The organisation indicated that it will aim to submit the a petition by the end of the August.
Kleynhans says matters are made worse because the City is forcing people to pay the new valuation amount even though tens of thousands of objections have been lodged against what many consider to be unrealistic and unreasonable valuations. It also seems that there is an outcry by many residents who have not participated in the GVR2023, getting a nasty surprise with the spike on their property rates bills in July.
OUTA believes that this process will bring relief to residents and businesses and create a fair process until a reasonable conclusion has been reached between the CoJ and affected ratepayers.
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