Rates and You - Durban

1 Rates AND YOU What are Rates ? Under local government law, everyone who owns a property must pay a local government tax. This tax is called Rates . Who has to pay Rates ? Anyone who owns a property must pay Rates . In the same way that you pay VAT on the goods you buy in the shops, Rates are a tax on property. Do I have to pay Rates if I have a bond because I am still paying for my house? Yes, you must still pay Rates . Every property owner must pay Rates If I rent my house, must I pay Rates ? No. But your landlord, the person who owns the house, must pay Rates If I have a business property, must I pay Rates on that too? Yes, Rates must be paid on both businesses and private houses. Who collects the money that is paid in Rates ? Your local council collects the Rates money. What does the local council do with the money collected for Rates ? Money paid for Rates is used for development projects - such as the building of sports stadiums, swimming pools, parks, libraries and museums, local roads and other things which are used by the whole community.

2 The Rates money also pays for the repairs and maintenance to all these. The Rates tax also pays for clearing the litter, refuse collection, sewerage and other services that the council provides. Does my local council make a profit on Rates ? No, your local council spends all the money it receives on the upkeep and improvement of services in your community. Rates enable the local government to deliver services to the people .Does everyone pay the same amount in Rates ? No, some areas have higher Rates than other areas, and people living in larger houses or who own larger pieces of land will pay more Rates . Older properties may not cost as much in Rates , as the age and condition of the buildings is taken into consideration. People living in areas with many services may be asked to pay more Rates . Why must I pay Rates if there are few facilities in my area? The money collected from Rates also helps to build new facilities, parks, libraries, playing fields and so on.

3 Your council needs to collect money so that it can build new facilities as well as maintain those which are already built. If you feel that there is a need for more facilities in your area, contact your local councillor Must I pay Rates if I own a piece of vacant land? Yes. How does the Real Estate Department work out the cost of the Rates to be paid? A valuer from the local council, following strict valuation rules, will determine the value of your land and your dwelling. Land and buildings will be valued separately and a special formula applied to calculate the amount of Rates owed. Land is valued at market value and the value of the buildings is worked out on the cost of replacing it less the depreciation - depreciation refers to the age and condition of the building. Does the amount paid in Rates represent the market value of my building and land? [the amount I could sell them for].

4 Not necessarily. The land value represents the market value of the land as if it was vacant. The buildings on the land are also valued. The Rates bill will be higher for a relatively new house, than for an old, dilapidated home - although the value of the land might be the same. If I make improvements to my house, will I have to pay more in Rates ? Yes, you may have to pay more in Rates if you have increased the value of the building. Who will tell me how much to pay? If you are a homeowner, you will receive a bill for Rates from your local council. Are there any concessions made for people who cannot afford to pay Rates ? If you own a dwelling valued between R 0 - 30 000 you will not pay Rates . Owners of dwellings valued over R 30 001 the life-line tariff will be as follows: Property Values Non Sewered Sewered R 30 001 - R 40 000 R R R 40 001 - R 50 000 R R R 50 001 - R 60 000 R R R 60 001 - R 70 000 R R R 70 001 - R 80 000 R R R 80 001 - R 90 000 R R 1 R 90 001 - R 100 000 R 1 R 1 Properties valued at R 100 001 and above will pay Rates according to the valuation of the property Enquiries: (031) 328 1200 Where do I enquire about my Rates ?

5 The address where Rates should be paid will appear on your Rates bill. Rates are usually paid at your Local Offices. You can pay your Rates at the following offices: Offices Telephone Hours Durban Central 311 1111 Mon-Fri Florence Mkhize Bldg. Sat 251 Smith St. Durban Inner West 718 2111 Mon-Fri Pinetown Civic Ctr. Sat 60 Kings Road Cnr Crompton St. North 032-533 9943 Mon-Fri 151 Wick Street Sat Verulam (1st & last Sat. of the month) South 913 4300 Mon-Fri Mayor Mews Sat Kingsburgh Gracestate Rd ( last Sat. of the month) Winkelspuit Outer West 765 6012 Mon-Fri 2 Delamore Rd Hillcrest Umkomazi 039-979 5311 Mon-Fri No 1 Civic Street Tongaat Townboard 032-944 1155 Mon-Fri 08:00-15:45 325 Main Road Sat 08:00-11:00 Tongaat (last Sat. of the month) What if I don't agree with the amount I am charged for Rates ? Rates cannot be appealed against by the ratepayer.

6 But you can appeal against your property valuation. If you do not agree with the municipal valuation you may make an application to the Director: Real Estate, 13th & 14th Floor, 75 Winder Street, Tel: 362 4111 - where you can complete an appeal form. A deposit of R 100 is required, but it will be refunded when the appeal is completed. Compiled by: Regional Centres Customer Care Services Tel: 0800 331 011 Head Office: 718 2111 EMail: How often must I pay Rates ? The Rates year is from 1st July to 30th June the following year. Some people prefer to pay their Rates once a year, while others prefer to pay each month. If you wish to pay your Rates monthly, then you must fill in an application form and send this to your local Rates department. How soon must the Rates be paid? If you pay monthly, then your Rates instalment must be paid by the end of each month. If you pay annually, then the Rates for the year must be paid by 31 January.

7 What happens if I do not pay my Rates ? If Rates are not paid by the due date, penalties and collection charges will be charged at a total of 23% per year. If Rates are still unpaid by 31 March, a one time charge equal to 15% of the original cost is added to cover the cost of collecting the money. After that, the council will send final notices by registered mail. Finally, if Rates remain unpaid, the law states that the council must auction your property to recover the money owed in Rates . What happens if I sell my house? To register the transfer of ownership on a property from one person to another, a clearance certificate is required by the Deeds office. To get this certificate, you must prove you have paid all your municipal bills, electricity, water and Rates . Where can I go for help? If you live in North Central or South Central Durban you can go to: Rates Department 3rd Floor, Florence Mkhize Building, 251 Smith Street Tel: 311 1111 or contact your local council.

8 AMA Rates NAWE Yini ama Rates ? Kusemthethweni ukuthi wonke umuntu ongumnikazi womuzi kumele akhokhe izintela. Loluhlobo lwentela kuthiwa ama Rates . Ubani okumele akhokhe ama Rates Noma ubani ongumnikazi womuzi kumele akhokhe ama Rates . Kufana nendlela yokukhokha iVAT oyikhokhela impahla oyithengile ezitolo, kanti ama Rates wona ayintela yezindlu. Kumele ngiwakhokhele yini ama Rates njengoba nginebhondi engiyikhokhela umuzi wami kumanje? Yebo, kumele uwakhokhele nama Rates , wonke umuntu ongumnikazi womuzi kumele awakhokhele ama Rates . Uma ngikhokha irenti, kumele ngiwakhokhele yini ama Rates ? Cha, kodwa umuntu oqashe kuyena, okuwumuntu ongumnikazi womuzi, uyena okumele akhokhe ama Rates kulowomuzi orenta kuwona. Uma nginebhizinisi, kuzomele ngikhokhele ama Rates nalapho? Yebo, ama Rates kumele akhokhelwe indawo yebhizinisi kanye nesakhiwo okuyindlu ohlala kuyona.

9 Ubani oqoqa izimali ezikhokhelwa ama Rates ? Umkhandlu wendawo ohlala kuyona okuyiwona oqoqa izimali zama Rates . Wenzani umkhandlu ngezimali oziqoqile ngezintela zama Rates ? Izimali ezikhokhelwa ama Rates zisetshenziselwa imisebenzi yentuthuko - njengokwakhiwa kwezinkundla zemidlalo, amachibi okubhukuda, amapaki, amalayibhurari nezinqolobane nezinye izinto ezisetshenziswa umphakathi. Izintela zama Rates zibuye zikhokhelwe nokwenza imisebenzi yokulungisa nokuqikelela imigwaqo, ukukhuculula imfuza, ukuthuthwa kukadoti nendle kanye neminye imisebenzi enokulethwa umkhandlu. Ngabe umkhandlu uyayenza yini inzuzo ngama Rates ? Cha, umkhandlu wendawo yakho uyisebenzisa yonke imali oyitholayo ukuze kuqikelelwe kuphinde kusimamiswe imisebenzi eyenzelwa umphakathi. Ama Rates asiza uhulumeni wendawo ukuthi adlulisele imisebenzi edingekile kubantu. Ngabe abantu bakhokha izimali ngendlela elinganayo yini?

10 Cha, kwezinye izindawo ama Rates aphezulu kunakwezinye izindawo, kanti abantu abahlala emizini emikhudlwana noma abaneziza ezinkulu kuyomele bakhokhe kakhudlwana ngasohlangothini lwama Rates . Imizi emidala kungenzeka ingakhokhi ama Rates aphezulu, njengoba iminyaka nesimo sezakhiwo nakho kubhekelwa. Abantu abahlala ezindaweni ezinengqalasizinda ethe ukusimama bona bangazithola sebekhokha kakhudlwana. Zincane kakhulu izinto zomphakathi endaweni yami, manje kufanele ngani ngikhokhele ama Rates ? Izimali eziqoqiwe zama Rates ziyasiza ekwakheni ingqalasizinda entsha, amapaki, amalayibhurari, nezinkundla zemidlalo nokunye. Umkhandlu wakho udinga ukuqoqa izimali ukuze ukwazi ukwakha ingqalasizinda entsha uphinde uqikelele lezo ezivele sezikhona. Kumele ngiqhubeke yini ngikhokhe ama Rates uma nginesiqeshana somhlaba ovulekile? Yebo UMnyango wakwaReal Estates uzibala kanjani izimali zama Rates okumele zikhokhwe?