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Local Government: Municipal Property Rates Act, 2004 (Act No. 6 of 2004)

Chapter 2 : Rating

Part 4 : Additional rates

22. Special rating areas

 

 

(1) A municipality may by resolution of its council—
(a) determine an area within that municipality as a special rating area;
(b) levy an additional rate on property in that area for the purpose of raising funds for improving or upgrading that area; and
(c) differentiate between categories of properties when levying an additional rate referred to in paragraph (b).

 

(2) Before determining a special rating area, a municipality must—
(a) consult the local community, including on the following matters:
(i) the proposed boundaries of the area; and
(ii) the proposed improvement or upgrading of the area; and
(b) obtain the consent of the majority of the members of the local community in the proposed special rating area who will be liable for paying the additional rate.

 

(3) When a municipality determines a special rating area, the municipality—
(a) must determine the boundaries of the area;
(b) must indicate how the area is to be improved or upgraded by funds derived from the additional rate;
(c) must establish separate accounting and other record-keeping systems regarding—
(i) the revenue generated by the additional rate; and
(ii) the improvement and upgrading of the area; and
(d) may establish a committee composed of persons representing the community in the area to act as a consultative and advisory forum for the municipality on the improvement and upgrading of the area, provided representivity, including gender representivity, is taken into account when such a committee is established. Such a committee must be a subcommittee of the ward committee or committees in the area, if the municipality has a ward committee or committees in the area.

 

(4) This section may not be used to reinforce existing inequities in the development of the municipality, and any determination of a special rating area must be consistent with the objectives of the municipality's integrated development plan.

 

(5) This section must be read with section 85 of the Municipal Systems Act if this section is applied to provide funding for an internal municipal service district established in terms of that section of the Municipal Systems Act.