What is a municipal valuation?

Author
MyProperty
South Africa's #1 independent property portal

Muncipal value is determined by local authorities by making a periodical survey of all buildings in their jurisdiction. Such valuation helps in charging municipal tax.

The municipal valuation is a value ascribed to your property by the Valuations Department at the municipality. It is determined based on a number of factors and the precise value is calculated according to formulae determined by the municipality’s Valuations Policy and the Local Government: Municipal Property Rates Act 6 of 2004. The municipal value is not necessarily equivalent to market value, but according to law, it should be.

The Municipal Property Rates Act is national legislation that has been introduced in order to provide nationwide uniformity, simplicity, and certainty as well as to take into account the historical imbalances and rates burden on the poor.

What is a valuation roll?

A valuation roll is a database in which the municipality stores the municipal valuations of all properties recorded on that particular roll. Every property in every municipality should be on a roll, but because properties are continuously coming into existence and ceasing to exist, new rolls are created - these are referred to as supplementary rolls - to include any properties that have not been previously recorded on another, prior, general roll.

Each general roll is re-published once every few years (4 or 5 depending on the municipality), and the property values (and categorisations) are updated at the same time. Depending on a number of factors, your property value may have stayed the same, or increased, or decreased, from the value contained on the last roll. Your categorisation may or may not have changed.

If you have received notice that your property is on a roll that is soon to be published, you should determine immediately whether you are satisfied with the municipal valuation and categorisation accorded to your property. If you are not, you will have to object.

Even if you have not yet received notice that your property is on a roll that is soon to be published, it is a good idea to determine which roll your property is listed on, and when it will be re-published in the future. This will give you an idea as to when you should be receiving notice of your revised property valuation so that you are armed with the relevant information to determine your revised value and if necessary, you have sufficient time to object. Not receiving notice does not absolve a property owner from the responsibility for inspecting the roll and objecting on time.

How to object municipal valuations

If you are of the opinion that your municipal property value is higher than the market value, you can lodge an objection with the municipality, giving your reasons. The municipality will then assess your objection, and notify you of the outcome. If the municipality finds that your objection is valid, it will revalue your property in line with your objection. If it finds that your objection is not valid, it will advise you and your property valuation will remain unchanged. You must file the objection in the prescribed time period. Most municipalities will not accept late objections.

General Property News
Living in Your Show House: Tips for Property Owners Preparing to Sell
Market & Opinion
Living in Your Show House: Tips for Property Owners Preparing to Sell
29 Sep 2023
Two major tasks loom ahead for home sellers: preparing their properties for potential buyers and maintaining that show-ready condition while still residing in them. Achieving this balance may seem daunting, but with some careful planning and cooperation with your estate agent, it's entirely possible. In this blog post, we'll provide you with valuable tips on how to live in your show house successfully.
read more
Homeowners' Guide: Maintaining Property Value in an Ever-Changing Market
Market & Opinion
Homeowners' Guide: Maintaining Property Value in an Ever-Changing Market
28 Sep 2023
Undeniably, a property that lacks proper maintenance can quickly deteriorate, becoming outmoded and falling into disrepair. The inevitable conclusion? Such a home would command a lower asking price when it finally hits the market. But, the million-dollar question remains: what are the decisive actions homeowners can take to ensure their property not only maintains its allure but possibly grows in value?
read more
The secret weapon for maximizing your home's value? The right real estate agent
Market & Opinion
The secret weapon for maximizing your home's value? The right real estate agent
27 Sep 2023
Selling your home is a significant life event, one that often involves substantial financial stakes. Hence, it’s only natural that you want to get the best possible price possible for your property, and having the right agent onside can make a world of difference in your final sale price.
read more
How has load-shedding changed what buyers are looking for in the housing market?
Market & Opinion
How has load-shedding changed what buyers are looking for in the housing market?
26 Sep 2023
In recent times, South Africa has witnessed a significant surge in the installation of alternative or backup electricity solutions. This shift in the real estate market has raised questions about the ownership models preferred by homebuyers and whether properties with pre-installed alternative energy solutions are becoming a key consideration for buyers.
read more
Real Estate Tools
Get pre-qualified
Make offers with confidence knowing what you can afford. Then shop for the best home loan
Bond Calculator
Calculate the estimated repayments on a home loan and savings with extra payments