Property Rates Amendment bill-a-list as Finalised 11022014

11 FEBRUARY 2014

AMENDMENTS PROPOSED TO

LOCAL GOVERNMENT: MUNICIPAL PROPERTY RATES AMENDMENT   BILL

                                                            [B33-2013]

CLAUSE 1

1. On page 3, in line 4, after “the” insert “Local Government: Municipal Property Rates Act, 2004 (the principal Act),”.
2. On page 3, in line 4, omit “principal Act,”.
3. On page 3,  substitute from lines 7 to 12 with the following:
   

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” ‘agricultural [purpose] property‘ [in relation to the use of a property,] means property that is used primarily for agricultural purposes but, without derogating from section 9, excludes any portion thereof that is used commercially for the hospitality of guests, and excludes the use of  [a] the property for the purpose of eco-tourism or for the trading in or hunting of game;”;

4. On page 3, in line 31, to omit “Minerals” and to substitute “Mineral” .
5. On page 3, in line 35, after “to” to insert “a” .
6. On page 3, substitute from lines 41 to 46 with the following:

‘official residence’, in relation to places of public worship, means—

(a)  a portion of the property used for residential purposes; or

(b)   one residential property, if the residential property is not located on the same property as the place of public worship, 

registered in the name of a religious community or registered in the name of a trust established for the sole benefit of a religious community and used as a place of residence for the office bearer;”;

7. On page 4, in line 10, to omit “Block” and to substitute “Blocks”.
8. On page 4, in line 15 to omit the first and second “paragraph” and to substitute “subparagraph”.
9. On page 4, in line 29 to omit “(g) runways” and to substitute “(g) runways”.
10. On page 4, substitute from lines 35 to 46 with:

” ‘public service purposes’, in relation to the use of a property, means property owned and used by an organ of state as:

(a)          hospitals or clinics;

(b)          schools, pre-schools, early childhood development centres or  further education and training colleges;

(c)          national and provincial libraries and archives;

(d)          police stations;

(e)          correctional facilities; or

(f)           courts of law,

but excludes property contemplated in the definition of ‘public service infrastructure’;“;

11. On page 4, in line 50 after “and” to insert “different categories of” .
12. On page 4, in line 58, after “purposes” to add “without derogating from section 9;” .

CLAUSE 3

13.  On page 5, in line 11to delete the word “and”.
14. On page 5, after line 11, to insert :

“(c )by the insertion in subsection (3) of the word “and” at the end of                             paragraph (j);

(d)    by the addition in subsection (3) after paragraph (j) of the following    paragraph:

“(k) in respect of agricultural property, give effect to the                                           regulations promulgated in terms of section 19(1)(b); and

  (e)      by the deletion of subsection (4). “

15. On page 5, to delete line 12.

CLAUSE 4

16.On page 5, in line 16, after “adopt” to insert “and publish”.

17. On page 5, in line 16, after “section” to insert “ 12 and” .

CLAUSE 6

18. On page 5, in line 44, after “infrastructure” to insert “properties”.

19. On page 5, in line 52, to omit “where appropriate,”.

20. On page 6, after line 4, to insert the following:

“(4)(a) Where a municipality can, on good cause, show  that there is a need to sub categorise the property categories listed in subsection (2), a municipality must apply to the Minister in writing for authorisation to create one or more of such sub-categories.

(b) Such application must—

(i) be accompanied by a motivation for such sub-categorisation;

(ii) demonstrate that such sub-categorisation is not in contravention of section 19; and

(iii) reach the Minister at least 15 months before the start of the municipal financial year in which the municipality envisages levying a rate on such sub-categorised property”. 

21. On page 6, to delete lines 5 and 6.

CLAUSE 7

22. On page 6, in line 10 to omit “Multiple” and to substitute “multiple”.

CLAUSE 10

23. On page 6, in line 29 to omit “30” and to substitute “60”.

24. On page 6 in line 29 to omit “from” and to substitute “of”.

25. On page 6, in line 30, to omit “;” and to substitute “.”

26. On page 6 in line 31 to omit “the” and to substitute “The”.

CLAUSE 11

27.  On page 6, in line 40, before “When” to insert “(2)”.

28. On page 6, in line 51, after “purposes;” to insert “and”.

29. On page 6, to delete lines 52 up to and including line 54.

30. On page 7, in line 1, to omit “(c)” and to substitute “(b)”.

CLAUSE 12

31. On page 7, in lines 8 and 9 to substitute “paragraph” with the word “paragraphs”.

32. On page 7, in line 8, after “(a)” to insert “and (b)”.

33. On page 7, in line 16, to omit “ ; and” .

34.  On page 7, after line 16, to insert:

“ (b) A municipality affected by a notice referred to in paragraph (a) must give       effect to the notice [and, if necessary, adjust its budget for the next      financial year accordingly]” , the effective  date of which must be from the start of a municipal financial year or from the date  determined by the Minister in the       notice.”

35. On page 7, to delete lines 17 up to and including line 21.

CLAUSE 13

36. On page, in line 37, to omit the first “2008” and to substitute “2007”.

37. On page 7, to substitute from lines 48 up to and including line 53 with the following:

“ (g)     on a property belonging to a land reform beneficiary or his or her heirs,                              dependants or spouse: provided that this exclusion lapses—

(i)        ten years from the date on which such beneficiary’s title was registered in the office of the Registrar of Deeds; or

(ii)       upon alienation of the property by the land reform beneficiary or his or her heirs, dependants or spouse;“;

38.On page 7, after line 53, to insert the following :

“ (f) by the substitution in subsection (1) for paragraph (i) of the following   paragraph:

“(i) on a property registered in the name of and used primarily as a place of public worship by a religious community, including [an]  the official residence registered in the name of that community which is occupied by [an] the office bearer of that community who officiates at services at that place of worship.”

39. On page 7, in line 54 to omit “(f)” and to substitute “g”.

40. On page 8, in line 4, to omit “g” and to substitute “h”.

41. On page 8, in line 15 to omit “h” and to substitute “i”.

42. On page 8, in line 12, to omit “Provided that”.

43.  On page 8, in line 12 to omit “if” and to substitute “If”.

44.  On page 8, to keep the underlining under “ii” in line 12 but to remove the underlining from under the words from lines 12 to 14.

CLAUSE 14

45.  On page 8, substitute line 29 with the following:

“sections 11(2), 21 and [89]  89A: Provided that this paragraph”

CLAUSE 15

46. On page 8, in line 41, omit the second “,” and substitute “,”.

CLAUSE 18

47. On page 9 in line 13, to omit “for” and to substitute “in” .

48. On page 9 in line 13, to omit “of the following subsection” and to substitute “for the words preceding paragraph (a) of the following words:”

49. On page 9, in line 14 to omit “2” and to substitute “2”.

50. On page 9, to substitute line 16 with the following:

“excluded from rates in terms of section 17(1)(a), [e, g]  and (h) [and i]: Provided             that—”; and “

51. On page 9, to delete lines 17 and 18.

CLAUSE 19

52. On page 9, to substitute lines 27 up to and including line 30 with the following:

“(a) by the substitution in subsection (1) for paragraph (b) of the following paragraph:

“(b) remains valid for that financial year or for one or more subsequent financial years as the municipality may decide, but in total not for more than—

(i)         four financial years in respect of a metropolitan municipality; and

(ii)        five financial years in respect of a local municipality”.”

(b) by the substitution for subsection (2) of the following subsection:

“(2) The MEC for local government in a province may extend the period for   which a valuation roll remains valid [to five financial years, but only]—

(a)          in the case of-

(i)        a metropolitan municipality, to six financial years; and

(ii)        a local municipality, to seven financial years,

if the provincial executive has intervened in the municipality in terms of section 139 of the Constitution; or

(b)  in the case of —

(i)            a metropolitan municipality, to five financial years and;

(ii)            a local municipality, to seven financial years,

on request by the municipality, in other exceptional circumstances which warrant such extension. “

CLAUSE 20

53. On page 9, in line 34, omit “(1C)” and substitute “(1B)”.

CLAUSE 22

54. On page 10 from line 10 up to and including line 17, clause omitted.

CLAUSE 23

55. On page 10, in line 26, to omit “or” and to substitute “or”.

CLAUSE 24

56. On page 10, in line 36, omit “[lower]”.

57. On page 10, in line 36, omit “fewer” and substitute “fewer”.

CLAUSE 25

58. On page 10, from line 43 to 47 to substitute with the following:

“(b) not fewer than two and not more than four other members with sufficient knowledge of or experience in the valuation of property, of which at least one—

(i)            must be a professional valuer registered in terms of the Property Valuers Profession Act, 2000 (Act No. 47 of 2000); or

(ii)           may be a professional associate valuer, without restrictions and with at least ten years experience, registered in terms of the Property Valuers Profession Act, 2000 (Act No. 47 of 2000), if a professional valuer cannot be appointed.”

CLAUSE 27

59. On page 11, in line 20, to insert “(4)” before “Rates”.

60. On page 11, substitute lines 24 to 26 with the following:

“a)        [the effective date of the supplementary roll] the first day of the month following the posting of the notice contemplated in subsection (5), in the case of property referred to in subsection (1)(a) [ , (e)] or (f);”;

CLAUSE 29

61. On page 12, in line 15, to omit “the following” and to substitute “whether —“

62. On page 12, in line 16, to omit “whether the” and to substitute with “a”.

63. On page 12, in line 18, to omit “whether”.

64. On page 12, in line 21, to omit “whether”.

65. On page 12, in line 23, to omit “whether”.

66. On page 12, in line 25, to omit “whether”.

67. On page 12, in line 27, to omit “The” and to substitute “A”.

68. On page 12, in line 48 to omit “paragraph” and to substitute “paragraphs”.

69. On page 12, after line 53, to insert the following:

“ (1C) A municipality must submit to the MEC for local government such information, reports, documents, explanations and motivations as may be required by the MEC”.”

70. On page 12, in line 54 to omit “(1C)” and to substitute “(1D)”.

71. On page 13, to omit from line 1 up to and including line 13.

CLAUSE 30

72. On page 13, in line 27, after “exclusions” to insert “exemptions”.

73. On page 13, to omit from line 28 up to and including line 45.

74. On page 13, in line 46 to omit “(l)” and to substitute “(f)”.

75. On page 13, in line 47 to omit “MECs by municipalities” and to substitute  “Minister by MECs”.

76. On page 13, to omit from lines 48 to 53 and to substitute with the following:

82B     The MEC for local government must submit reports in such form and at such intervals as may be prescribed to the Minister on the following matters:

(a)     The granting by the MEC of condonation to municipalities for non-compliance with timeframes as provided for in section 80;

(b)          the granting by the MEC of extension of the period of validity of a municipality’s valuation roll in terms of section 32;

(c)          reports outlining the progress with the implementation of the next valuation roll following the extension of the period of validity of the valuation roll;

(d)          the establishment and terms of office of each valuation appeal board in the province; and

(e)          any other matter that is prescribed or provided for in the Act or as required by the Minister.”.

CLAUSE 31

77. On page 14, in line 27, after “generally;” to insert “or”.

78. On page 14, in line 17, omit “,”  and substitute “,”.

CLAUSE 32

79. On page 14, in line 32, omit “section” and substitute “sections”.

80. On page 14, in line 32 to insert “and 89” after “88”.

CLAUSE 34

81. On page 15, in line 9, after “effective” to insert “and subsequent financial years, until it prepares a valuation roll or a supplementary valuation roll that includes such area” .

82. On page 15, in line 10, to omit “a” and to substitute “the”.

83. On page 15, in line 10, after “policy” to insert “and by laws” .

84. On page 15, in line 10 to omit “was” and to substitute “were”.

85. On page 15, in line 12, after “policy” to insert “and by laws”.

CLAUSE 36

86. On page 15, in line 15, to omit “sections” and substitute “sections”

87. On page 15, in line 15, after “93A” to insert “and “93B”

88. On page 15, in line 20, to omit “three” and substitute “five”.

89. On page 15, in line 23 to omit “75” and substitute “80”.

90. On page 15, in line 25 to omit “50” and substitute “60”.

91. On page 15, in line 26 to omit “and”.

92. On page 15, in line 27 to omit “25” and substitute “40”.

93. On page 15, after line 28, to insert the following:

“(d) in the fourth year be no more than 20 percent of the rate for that year otherwise applicable to that property; and

(e) in the fifth year, be no more than 10 percent of the rate for that year otherwise applicable to that property”.

94. On page 15, to insert after line 28, the following:

“Transitional arrangement: Differential rates

93B.    The provisions of section 8 must be applied by a municipality within seven years of the date of commencement of this Act.

CLAUSE 37

95. On page 15, in line 29, to insert “and commencement” after “Short title”.

96. On page 15, in line 31 to omit “2013” and to substitute “2014”.

97. On page 15, in line 31, after “2013” to insert “and comes into operation on a date to be determined by the President by proclamation in the Gazette”.

98. On page 15, to delete from line 32 up to and including line 33.