Why you should check your property valuation

The valuation roll is a list of all the properties in a municipality and their assessed values. This roll is used to determine property taxes, so any changes to it can directly impact your taxes. The Municipal Property Rates Act stipulates that a valuation roll is valid for between 4 and 5 years, depending on the type of municipality. However, a municipality can decide to publish valuation rolls more frequently.

The City of Johannesburg recently opened its 2023 General Valuation Roll for inspection and objection, noting the total value has increased by 12%. What’s more, the city’s draft medium-term budget reveals the combination of higher property valuations and a 5.3% increase in property rates tariffs, will increase its property rates revenue by 15.8%.

While this is just one municipality, homeowners should be aware that similar valuation roll increases could be seen in other regions of the country within the next few years.

Inspection is essential

All homeowners should inspect their new property valuation so they can object to any unfair increases, says the Organisation Undoing Tax Abuse (OUTA). In fact, the organisation has stated that some owners have already objected to excessive increases – some by as much 70% – that will lead to massive hikes in rates and taxes.

So what should you be looking at?

At the very least you should check the categorisation and market value of the property. The categorisation determines the appropriate tariff that will be used to calculate your monthly property rates. Businesses, as an example, pay a higher tariff than residential properties so it’s worth confirming your home has been categorised correctly.

The market value of property, on the other hand, should represent a fair estimation of what the property could sell for in the current market. 

Other information, such as description, stand or portion number, size or owner details, should ideally also be checked for accuracy.

When to object

If any of the details such as categorisation or market value are inaccurate, it’s important to submit an objection before your municipal deadline. (The City of Johannesburg has extended its deadline for objections to 5 May 2023.)

It’s important to note, however, that you’ll need to support the objection, says Hayley Ivins-Downes, head of digital for Lightstone.

“When you lodge an objection with the municipality, you need to provide a reason and supporting documentation, such as a Lightstone Property Value Buyer Report, that meets your municipality’s views of suitable evidence. A certified valuer would be required to add to the motivation as part of the objection,” she explains.

These reports have already been used by property owners in areas like Ekurhuleni, Umgeni and Knysna to assess the market value of their properties and compare it to the municipal valuation roll, assisting the property owners in determining whether they need to object, says Ivins-Downes.

For more information on how to lodge an objection consult your municipality’s website or call the contact centre.