Cape Town mulls rates relief for homeowners

Cape Town mulls rates relief for homeowners

 

Residential property owners could end up paying the same or less in property rates from July 1, despite the latest increases in property values, with the City of Cape Town proposing a drop in its rates tariff for 2016/17.

The city is proposing a 7 percent decrease in the property rates tariff. Last year, property rates went up by 10 percent.

The city council has also put forward single digit tariff increases for electricity, water and sanitation. This includes only a 6.6 percent increase in the price of electricity for residential consumers.

 

As from July 1, ratepayers can expect to pay 9.75 percent more for water and sanitation compared to 11 percent more last year.

Refuse removal will go up by 7.92 percent this year, compared with 8.33 percent last year.

Mayor Patricia de Lille said the city had decided to base its proposed tariff increases on a Consumer Price Index of 5.9 percent, despite an advisory from National Treasury on March 7 which advised 6.6 percent.

With the city's housing stock having gone up by about 20 percent in value over the past three years, it had given the city room to reduce property rates, said deputy mayor Ian Neilson.

Pensioners and the disabled would also experience some relief, with the rates rebate being increased from a maximum monthly household income of R12 000 to R15 000.

Households with a gross monthly income of R4 000 or less will get a 100 percent rates rebate.

The indigent rate rebate for ratepayers younger than 60 years has also been increased from a maximum monthly household income of R5 000 to R6 000.

Article from iolproperty

06 April 2016