which it is the owner, or public service infrastructure owned by it or on properties in respect of which it is impossible or unreasonably difficult to establish a market value because of legally insecure tenure resulting from past racially discriminating laws or practice. 2 EXERCISE OF POWER IN TERMS OF LEGISLATION A Municipality must exercise its power to levy rate on property subject to: (a) Section 229 and other applicable provisions of the Constitution (b) The provisions of the MPRA (c) Its Rates Policy and Rates By-laws 3 IMPLEMENTATION OF AND EFFECTIVE DATE 3.1. The Rates Policy shall take effect from 1 July 2009 being the effective date of the first valuation roll prepared by the municipality in terms of the MPRA and must accompany the municipality’s budget for the financial year. 3.2. The Rates Policy will be reviewed annually, and if necessary amended by the Municipality such amendments to be effected in conjunction with the Municipality’s annual budget in terms of Sections 22 and 23 of the Municipal Financial Management Act. 3.3 The Municipality must adopt and publish by-laws, in terms of Sections 12 and 13 of the Municipal Systems Act, to give effect to the implementation of its rates policy and must be read in conjunction with this policy. The rates may differentiate between: 3.3.1 Categories of properties; and 3.3.2 Categories of owners of properties. 3.4 The rates by-laws adopted in terms of Item 3.3 may be reviewed annually, and if necessary be amended by the Municipality, in conjunction and in accordance with the Rates Policy. 4. THE PURPOSE OF THIS POLICY The purpose of this policy is to: 4.1 ensure compliance with the provisions section 3 of the Municipal Property Rates Act, 2004 (Act No. 6 of 2004);
21. REDUCTIONS It is recorded that the municipality is precluded from levying rates on the following categories determined by the municipality: 21.2 The first R15 000 of the market value of a property assigned in the valuation roll or supplementary valuation roll of a municipality for residential properties in terms of section 17(1)(h) of the Act; 21.3 The first R15 000 of the market value of a property assigned in the valuation roll or supplementary valuation roll of a municipality for multi purposes, relating to that portion used for residential purposes only; 21.4 On the first 30% of the market value of a property assigned in the valuation roll or supplementary valuation roll of a municipality for Public Service Infrastructure in terms of section 17(1)(a) of the Act; 21.5 The municipality may in its discretion further reduce the value upon which rates will be levied by an amount determined by the Municipality by resolution of the council at its annual budget in respect of residential properties; 21.6 The municipality may in addition reduce the value upon which rates will be levied by a further R15000 as determined by the municipality by resolution of the council at its annual budget in respect of residential properties. 21.7 On any property referred to in paragraphs (a) (b) (e) (g) and (h) of the definition Of “public service infrastructure” 22 RATES REBATES REBATES FOR CATEGORIES OF PROPERTIES The municipal Council may at its annual budget resolve to grant rebates to any of the categories of properties as determined in this policy. The Municipality may grant a lifeline benefit rebate on residential properties up to a value determined by a resolution of Council at its annual budget taking cognizance of the principle that such rebates shall address the indigent. The provisions for clause 24 below shall apply to the grants of any rebates in terms of clause of 22.2 The Municipality may grant an additional rebate to properties used for hospitality / tourism as bed and breakfast establishment in additional to any rebates granted to the category of properties provided that