Property rates
The City uses municipal property valuations to determine the property rates you see on your municipal account. This is in line with the current Rates Policy.
About property rates
We take the following into consideration when calculating your property rates:
- Municipal property valuation is used to calculate rates liability.
- A property is categorised according to what it is used for and, in some cases, according to ownership as well.
- Each property category has a rate-in-the-Rand assigned to it (Property Rates Tariff Sheet)
- No rates are levied on the first R15 000 of the value of a residential property (which, by law, a municipality is not allowed to levy on), as it appears on the
general valuation roll (GV2022).
Property categories
Property is categorised according to the use of the property and in some cases use and ownership is taking into consideration. A rate-in-the-Rand is assigned to each property rating category which is used in the calculation of the property rates liability.
The property rating categories are in accordance with the
Local Government: Municipal Property Rates Act (MPRA) (Act 6 of 2004).
The City identified the following property rating categories:
- Agricultural properties;
- Business and commercial properties;
- Cemeteries and Crematoria;
- Industrial properties;
- Mining properties;
- Nature conservation land;
- Properties owned by a Social Housing Regulatory Authority accredited Social Housing Institutions or accredited Other Delivery Agents (ODA) and used for social housing;
- Properties owned by an organ of state and used for public service purposes;
- Properties owned by an organisation – not for profit and used for animal shelters;
- *Properties owned by an organisation – not for profit and used as a local community museum;
- *Properties owned by an organisation – not for profit and used for specific activities:
- Accommodation for the vulnerable;
- Early childhood development;
- Exclusively for amateur sport;
- Old age home; or
- Youth development ; - Properties owned by Public Benefit Organisation (PBO) and used for specified public benefit activities;
- Properties used for multiple purposes;
- Public Service Infrastructure properties;
- Residential properties
- Vacant land;
- Properties owned by a religious community and used for specified religious purposes; and
- Miscellaneous property rating category.
*Organisation - Not for Profit” means:
A Non Profit Company (NPC) defined as such in terms of section 1 of the
Companies Act 71 of 2008;
PBOs - registered in terms of the Income Tax Act 52 of 1962
NPOs - registered in terms of the Non-Profit Organisations Act 71 of 1997;
A religious community; Trusts - operating for a public benefit - where the Trustees are not beneficiaries; or
Voluntary organisations operating for a public benefit.
Change in property category
We have the following property categories that attract a lesser rates amount:
- Agricultural Properties
- Properties owned by a Social Housing Regulatory Authority accredited Social Housing Institutions or accredited Other Delivery Agents (ODA) and used for social housing
- Properties owned by a PBO and used for specified public benefit activities
- Properties owned by an organisation – not for profit and used for specific activities:
- Accommodation for the vulnerable;
- Early childhood development;
- Exclusively for amateur sport;
- Old age home; or
- Youth development. - Properties owned by an organisation – not for profit and used as a local community museum
- Properties owned by an organisation – not for profit and used for animal shelters
- Properties owned by a religious community and used for specified religious purposes
Follow the City Connect link below to apply:
property category vs. property zoning
Changing your property rating category is not the same as changing the zoning of your property.
A property is categorised based on the use thereof and in some instances the use and ownership is taken into consideration. Municipal property rates are calculated based on the rate-in-the-Rand associated with the property rating category as it appears on the Valuation roll.
Your property zoning category relates to
land use (what you can and can't do on/with your property). Changing the zoning requires a
land use application.
Place of public worship / residence of the office-bearer
We do not levy a rate on a property registered in the name of and used primarily as a place of public worship by a religious community. This includes the official residence occupied by the primary office-bearer (priest, pastor, minister etc.) who officiates services at the place of public worship.
If you believe that your property meets the requirements to be regarded as a place of public worship, or you want to apply for the residential property owned by the religious community and occupied by the primary office-bearer at your branch/church building, kindly submit the applications to
BIVR@capetown.gov.za. The application form can be found at the link below.
Rebates
There are no longer rebates in respect of PBOs/NPOs and Agricultural property.
In terms of the MPRA, the City grants rebates to:
If you are a residential property owner and dependent on pension or social grants for your livelihood, and have a gross household income of R27 000 or less per month, you may apply for a rebate on a sliding scale.
Follow the links below for more information about the pensioners and social grants rebates:
FAQs
Download our useful FAQs to find out more about property valuations and other related processes.
FREQUENTLY ASKED QUESTIONS
gENERAL AND SUPPLEMENTARY VALUATIONS
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