The City of Cape Town’s Valuation Department recently kicked-off preparations for its third general valuation for rating purposes.

A project of this magnitude is not without its problems, not least of which is obtaining accurate market data (i.e. income and expense information) to be used in the valuation of commercial and industrial properties.

In the past, all properties were physically inspected by registered valuers. However, given the large number of properties (in Cape Town’s case approximately 780 000) and the frequency of general valuations (legislation prescribes that a general valuation must occur at least every four years), it is no longer possible to follow this route.

Instead, legislation allows for the use of Computer Assisted Mass Appraisal (CAMA) techniques – loosely described as the determination of values using a variety of statistical methods – to produce market values. This technique uses existing information currently on the Valuation Department’s database, but it is also dependant on up to date market information in order to generate accurate values. The quality of these values is in turn very sensitive to the accuracy of data.

For this reason, the City will mail questionnaires to approximately 17 000 commercial and industrial owners. The returned data (which will be treated with the utmost confidence) will not only go a long way towards determining more accurate valuations, but should also have the effect of reducing the number of owner objections, which historically has been a protracted process, lasting in excess of a year. In addition, the Valuation Department has resolved to give priority to those objections where owners have returned their questionnaires.

Owners will have the choice of returning the questionnaires , which are also available on-line, by mail, fax or e-mail.

More up to date data will also assist the City in addressing equity concerns, given that in the last general valuation, implemented in 2007, certain values were perceived to be on the conservative side.

Lastly, the City has pointed out that not only is it a civic responsibility for owners to return their completed questionnaires, but that the legislation makes provision for the Valuation Appeal Board to award costs against owners in cases where information is held back and only submitted when such owners wish to argue their case before the Valuation Appeal Board.

Property owners should note the following important points relating to the completion of the questionnaire:

• All information furnished will be treated in absolute confidence and used for municipal valuation purposes only
• Sections 86(i)(f) and 86(3) of the MPRA inter alia state that the furnishing of any false information constitutes an offence which is punishable by law
• Written enquiries need to state the following contact number: 021 400 2687/021 400 2864
• Section 42(2) of the MPRA provides that where information is held back and only submitted to the CVO when the owner wishes to argue the matter before the Valuation Appeal Board, costs incurred relating to the board hearing may be awarded against the appellant. 
• It is in the best interest of property owners to supply the CVO with accurate market data, so as to facilitate the determination of accurate valuations in the first instance. This will go a long way towards reducing the number of objections and the often lengthy period associated with resolving such objections.
• The City will review current data that has resulted in errors including where valuations are perceived to be on the conservative side. 
• In those cases where property owners submit objections, priority will be given to resolving those objections where questionnaires were timeously submitted to this office. 
• Completed questionnaires will help the City verify billing addresses currently held on its systems.

If the administration of your property is dealt with by an agent, please authorise the furnishing of the required information to this office.

Kindly complete the questionnaire using the current date (today's date) so as to ensure that the information is up to date. You should then copy the reference number onthe top left hand side of the front page of the covering letter received per mail to the allocated reference number space on the questionnaire. Ensure that your contact details are entered in the space provided. The completed questionnaire can be returned via the enclosed self-addressed envelope, or faxed to 021 425 4396. If the latter is chosen, the completed questionnaires must be clearly marked for the attention of Llewellyn Louw, Head: Valuation Process & Methodology. Alternatively, you can e-mail the completed document to valuations@capetown.gov.za. (Similarly, please direct your e-mail to the attention of Llewellyn Louw, Head: Valuation Process & Methodology).

The completed questionnaires should be returned by no later than 11 August 2009 .

Click here to download the questionnaire.