Frequently Asked Questions

1. What is a market report?

It is a general analysis of the property market for a specified group of properties. It is a study of conditions and trends and eliminates non representative sales. The purpose of market report is to assist the municipalities in their objectives and appeal processes and is the necessary basis for supplementary rolls.

2. What is the purpose of the draft roll?

The Draft Roll is a tool to assist local municipalities to estimate tariffs and conduct their budgeting processes, subject to internal monitoring.

3. Must small municipalities implement all aspects of the Act?

Yes, full compliance is required. The Department recommends a shared service approach to the implementation of the MPRA. Through this approach local municipalities may pool their resources to achieve a sustainable and cost effective implementation.

4. How are valuation appeal boards established?

The MEC for Local Government is responsible for appointing the Valuation Appeal Boards at District level. The Valuation Appeal Boards will deal with all appeal applications from local municipalities within that jurisdiction.

5. How will the MPRA achieve its goal in rural areas where the majority of property will be exempt from rates?

The preamble of the Act sets out the objectives of the MPRA to ensure a uniform system of valuation. The MPRA will motivate for the equitable share allocation through a transparent and fair process

6. Is the Municipal property ratable?

Municipal property must be valued. The rating policy to be determined by municipality may exempt municipal property in which case municipal property will not be ratable.

7. Can the single error invalidate the roll?

No, supplementary rolls are prepared to correct errors.

8. Is it necessary to appoint a Municipal Valuer ahead of preparing the rates policy?

The municipal valuer has the expertise to assist the local municipality to determine property categories for differential rating. The determination of the rating policy is primarily a local municipality function.

9. Does the rates policy determine rates tariffs?

No, the rates policy determines categories of properties. The tariff policy determines the rate randages levied per category of property.

10. What is a bona fide farmer?

The Act does not define bona fide farmer. Local municipalities have the discretion to define this category of land user.

11. Are eco tourism and game farming activities considered agricultural use?

No, this land use are not eligible for the agricultural rebate structure.

12. Can the rates policy be drafted as a single by-law?

No, each aspect of the rates policy needs to be drafted as a separate by-law

13. Is a smart house in a communal area ratable?

Exemption clauses need to be defined in the rates policy, recipients of old age/disability grants are exempt. The social policy of the local municipality must compliment national policy intentions.

14. Can a municipality appoint a service provider for a contract period longer than 3 years?

Section 3(2) of the MFMA states as follows:

(2) In the event of any inconsistency between a provision of this Act and any other legislation in force when this Act takes effect and which regulates any aspect of the fiscal and financial affairs of municipalities or municipal entities, the provision of this Act prevails.

This means that the MFMA will always prevail over any other legislation (including the MPRA), that "regulates any aspect of the fiscal and financial affairs of municipalities".

Section 116(1)(b)(iii) that is at issue with regard to the 3 year period, and Regulation 25 of the MFMA Regulations.