Kannaland
South Africa
South Africa
Revenue By-law, 2014
- Published in Western Cape Provincial Gazette 7282 on 27 June 2014
- Commenced on 1 July 2014
- [This is the version of this document from 27 June 2014 and includes any amendments published up to 20 September 2024.]
Part I – General
1. Objective of by-laws
2. Definitions
“Accommodation establishment” in relation to a property means the supply of overnight facilities to guests and tourist. A guest house can be an existing home from 3 or more rooms specifically designed to provide overnight accommodation.“Agent” in relation to the owner of a property, shall mean a person appointed by the owner of the property to receive rental or other payments in respect of the property on behalf of the owner, or to make payments in respect of the property on behalf of the owner.“Agricultural property” means property that is used primarily for agricultural purposes, including the rearing, trading and hunting of game but, without derogating from section 9, the property for the purpose of eco-tourism and any portion thereof that is used for the hospitality of guests.“Annual budget” shall mean the budget approved by the municipal council for any particular financial year, and shall include any adjustments to such budget.“Basic municipal services” shall mean a municipal service necessary to ensure an acceptable and reasonable quality of life, which service - if not provided - would endanger public health or safety or the environment.“By-law” shall mean legislation passed by the council of the municipality, and which shall be binding on the municipality and on the persons and institutions to which it applies.“Consumer price index” shall mean the CPIX as determined and gazetted from time to time by the South Africa Bureau of Statistics.“Councillor” shall mean a member of the council of the municipality.“Domestic consumer or user” of municipal services shall mean the person or household which municipal services are rendered in respect of “residential property” as defined below.“date of valuation” means the date determined by a municipality in terms of section 31(1) of the Act.“day” means when any number of days are prescribed for the performance of any act, those days must be reckoned by excluding the first and including the last day, unless the last day falls on a Saturday, Sunday or any public holiday, in which case the number of days must be reckoned by excluding the first day and also any such Saturday, Sunday or public holiday;“effective date”-(a)in relation to a valuation roll, means the date on which the valuation roll takes effect in terms of section 32(1) of the Act; or(b)in relation to a supplementary valuation roll, means the date on which a supplementary valuation roll takes effect in terms of section 78(2)(b) of the Act;“exclusion”, in relation to the municipality’s rating power, means a restriction of that power as provided for in section 17 of the Act;“Financial year” shall mean the period starting from 1 July in any year and ending on 30 June on the following year.“Integrated development plan” shall mean a plan formulated and approved as envisaged in Section 25 of the Municipal Systems Act 2000.“Land reform beneficiary” in relation to a property, shall mean a person who acquired the property through the provision of Land and Assistance Act No. 126 of 1993 or the Restitution of Land Rights Act No. 22 of 1994, or who holds the property subject to the Communal Property Associations Act No. 29 of 1996, or who holds or acquires the property in terms of such other land tenure reform legislation as may be enacted.“land tenure right”, means a land tenure right as defined in section 1 of the Upgrading of Land Tenure Rights Act, 1991 (Act No. 112 of 1991);“Local community” or “community”, in relation to the municipality, shall mean that body of persons comprising the residents of the municipality, the ratepayers of the municipality, any civic organisations and non-governmental, private sector or labour organisations or bodies involved in local affairs within the municipality, and visitors and other people residing outside the municipality who, because of their presence in the municipality, make use of services or facilities provided by the municipality.“mining property” means a property used for mining operations as defined in the Minerals and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002);“Market value” in relation to a property shall mean the value of the property as determined in accordance with Section 46 of the Property Rates Act 2004.“multiple purposes”, in relation to property, means the use of a property for more that one purpose, subject to section 9“Month” means one of twelve months of a calendar year.“Municipality” or “municipal area” shall, where appropriate, mean the geographic area, determined in terms of the Local Government: Municipal Demarcation Act No. 27 of 1998 as the municipal area pertaining to the municipality.“Municipal council” or “council” shall mean the municipal council as referred to in Section 157(1) of the Constitution.“Municipal entity” shall mean(a)a company, co-operative, trust, fund or any other corporate entity established in terms of any applicable national or provincial legislation, and which operates under the ownership control of one or more municipalities; or(b)a service utility.“Municipal manager” shall mean the person appointed in terms of Section 82 of the Municipal Structures Act, 1998.“Multiple purposes” in relation to a property, shall mean the use of a property for more than one purpose.“Municipal service” has the meaning assigned to it in terms of Section 1 of the Municipal Systems Act.“Municipal tariff” shall mean a tariff for services which the municipality may set for the provision of a service to the local community, and may include a surcharge on such service. Tariffs for major services shall mean tariffs set for the supply and consumption or usage of electricity, water, sewerage and refuse removal, and minor tariffs shall mean al other tariffs, charges, fees, rentals or fines levied or imposed by the municipality in respect of other services supplied including services incidental to the provision of the major services.“Occupier” in relation to a property, shall mean a person in actual occupation of the property, whether or not that person has a right to occupy the property.“office bearer”, in relation to places of public worship, means the primary person who officiates at services at that place of worship;“official residence” in relation to places of public worship, means a single residential property registered in the office of the Registrar of Deeds in the name of a religious community or registered in the office of the Registrar of Deeds in the name of a trust established for the sole benefit of a religious community and used as a place of residence for an office bearer;“Owner”(a)in relation to a property referred to in paragraph (a) of the definition of “property”, shall mean a person in whose name ownership of the property is registered;(b)in relation to a right referred to in paragraph (b) of the definition of “property”, shall mean a person in whose name the right is registered;(bA)in relation to a time sharing interest contemplated in the Property Time-sharing Control Act, 1983 (Act No. 75 of 1983), means the management association contemplated in the regulations made in terms of section 12 of the Property Time sharing Control Act, 1983, and published in Government Notice R327 of 24 February 1984;(bB)in relating to a share in a share block company, the share block company as defined in the Share Block Control Act, 1980 (Act No. 59 of 1980);(bC)in relation to buildings, other immovable structures and infrastructure referred to section in 17(1)(f), means the holder of the mining right or the mining permit.(c)in relation to a land tenure right referred to in paragraph (c) of the definition of “property”, shall mean a person in whose name the right is registered or to whom it was granted in terms of legislation; and(d)in relation to public service infrastructure referred to in paragraph (d) of the definition of “property”, shall mean the organ of state which owns or controls that public service infrastructure as envisaged in the definition of “publicly controlled”, provided that a person mentioned below may for the purposes of the Property Rates Act 2004 be regarded by the municipality as the owner of a property in the following cases:(i)a trustee, in the case of a property in a trust, but excluding state trust land;(ii)an executor or administrator, in the case of a property in a deceased estate;(iii)a trustee or liquidator, in the case of a property in an insolvent estate or in liquidation;(iv)a judicial manager, in the case of a property in the estate of a person under judicial management;(v)a curator, in the case of a property in the estate of a person under curatorship;(vi)a person in whose name a usufruct or other personal servitude is registered, in the case of a property that is subject to a usufruct or other personal servitude;(vii)a lessee, in the case of a property that is registered in the name of the municipality and is leased by it; and(vii)a lessee, in the case of property to which a land tenure right applies and which is leased by the holder of such right; or[Please note: numberig as in original.](viii)a buyer, in the case of a property sold by the municipality and of which possession was given to the buyer pending registration of ownership in the name of such buyer.“Permitted use” in relation to a property, shall mean the limited purposes for which the property may be used in terms of any restrictions imposed by a condition of title, a provision of the municipality’s town planning or land use scheme, or any legislation applicable to any specific property or properties, or any alleviation of any such restrictions.“Person” shall include an organ of state, and an “organ of state” shall mean an organ of state as defined in Section 239 of the Constitution.“Place of public worship” means property used primarily for the purposes of congregation, excluding a structure that is primarily used for educational instruction in which secular or religious education is the primary instructive medium: Provided that the property is-(a)registered in the name of the religious community;(b)Registered in the name of a trust established for the sole benefit of a religious community; or(c)subject to a land tenure right;“Property” shall mean(a)immovable property registered in the name of a person, including in the case of a sectional title scheme a sectional title unit registered in the name of a person;(b)a right registered against immovable property in the name of the person, but excluding a mortgage bond registered against the property;(c)a land tenure right registered in the name of a person or granted to a person in terms of legislation; and(d)public service infrastructure.“Public service infrastructure” shall mean publicly controlled infrastructure of the following kinds:(a)national, provincial or other public roads on which goods, services or labour move across a municipal boundary;(b)water or sewer pipes, ducts or other conduits, dams, water supply reservoirs, water treatment plants or water pumps forming part of a water or sewer scheme servicing the public;(c)power stations, power sub-stations or power lines forming part of an electricity scheme serving the public;(d)gas or liquid fuel plants or refineries or pipelines for gas or liquid fuel forming part of the scheme for transporting such fuels;(e)railway lines forming part of a national railway system;(f)communication towers, masts, exchanges and lines forming part of a communication system serving the public(g)runways, aprons and the air traffic control unit at national or provincial airports, including the vacant land known as the obstacle free zone surrounding these, which must be vacant for air navigation purposes;(h)breakwaters, seawalls, channels, basins, quay walls, jetties, roads, railway or infrastructure used for the provision of water, lights, power, sewerage or similar services of ports, or navigational aids comprising lighthouses, radio navigational aids, buoys, beacons or any other device or system used to assist the safe and efficient navigation of vessels;(i)any other publicly controlled infrastructure as may be prescribed; and(j)rights of way, easements or servitudes in connection with infrastructure mentioned in paragraphs (a) to (i).“Publicly controlled” shall mean owned by or otherwise under the control of an organ of state, including a public entity listed in the Public Finance Management Act No. 1 of 1999, a municipality, or a municipal entity.“Rate” shall mean a municipal rate on property as envisaged in Section 229(1)(a) of the Constitution.“Rateable property” shall mean property on which the municipality may in terms of Section 2 of the Property Rates Act 2004 levy a rate, but excluding property fully excluded from the levying of rates in terms of Section 17 of that Act.“ratio”, in relation to section 19, means the relationship between the cent amount in the Rand applicable to residential properties and non-residential properties: Provided that the two relevant cent amounts in the Rand are inclusive of any relief measures that amount to rebates of a general application to all properties within a property category;“Ratepayer” shall mean a person who is liable to the municipality for the payment of(a)rates on property in the municipality;(b)any other tax, duty or levy imposed by the municipality; and/or(c)fees for services provided either by the municipality or in terms of a service delivery agreement.“Rebate” in relation to a rate payable on a property, shall mean a discount granted in terms of Section 15 of the Property Rates Act 2004 on the amount of the rate payable on the property.“Residential property” shall mean a property included in the valuation roll in terms of Section 48(2)(b) of the Property Rates Act 2004 as residential.“Sectional Titles Act” shall mean the Sectional Titles Act No. 95 of 1986, and“sectional title scheme” shall mean a scheme defined in Section 1 of that Act; and “sectional title unit” shall mean a unit as defined in Section 1 of that Act.“Specified public benefit activity” shall mean an activity listed in item 1 (welfare and humanitarian), item 2 (healthcare) and item 4 (education and development) of Part 1 of the ninth schedule to the Income Tax Act No. 58 of 1962“State trust land” shall mean land owned by the state and held in trust for persons communally inhabiting the land in terms of a traditional system of land tenure; over which land tenure rights have been registered or granted; or which is earmarked for disposal in terms of the Restitution of Land Rights Act No. 22 of 1994.Part II – Tariffs
3. Objectives
In setting its annual tariffs the council shall at all times take due cognisance of the tariffs applicable elsewhere in the economic region, and of the impact which its own tariffs may have on local economic development.4. General principles
5. Calculation of tariffs for major services
In order to determine the tariffs which must be charged for the supply of the four major services, the municipality shall identify all the costs of operation of the undertakings concerned, including specifically the following:6. Structure of tariffs
7. Electricity
8. Water
9. Refuse removal
10. Sewerage
11. Minor tariffs
Part III – Rates
12. Objectives
13. Clearance certificates (section 118(1) and 118(3))
14. Imposition of rates
15. Rebates on rates
CATEGORY OF PROPERTY | REBATE TO BE GRANTED |
---|---|
(i) Sites zoned for residential purposes and used for residential purposes only and of which the total valuation is R40 000.00 or less, will automatically be exempt from property rates | 100% |
(ii) Industrial properties | NONE |
(iii) Business and commercial properties | NONE |
(iv) Farm properties: residential component | 75% |
(v) Farm properties: business and commercial component | NONE |
(vi) Farm properties: agricultural component | 75% |
(vii) Farm properties: used for no purpose | 75% |
(viii) Smallholdings: residential component | 75% |
(ix) Smallholdings: business and commercial component | NONE |
(x) Smallholdings: industrial component | NONE |
(xi) Smallholdings: agricultural component | 75% |
(xii) State-owned properties: residential | NONE |
(xiii) State-owned properties: public service infrastructure | 30% |
(xiv) State-owned properties: other | NONE |
(xv) Municipal properties: residential | NONE |
(xvi) Municipal properties: public service infrastructure | 30% |
(xvii) Municipal properties: other | NONE |
(xviii) Formal and informal settlements: all properties with a rateble value of up to R40 000, will automatically be exempted from rates. | 100% |
(xix) Formal and informal settlements: all properties with a rateble value of R40 000 or more | NONE |
(xx) Communal land | NONE |
(xxi) State trust land | NONE |
(xxii) Protected areas | 100% |
(xxiii) Properties on which national monuments are situated, and where no business or commercial activities are conducted in respect of such monuments | 100% |
(xxiv) Properties on which national monuments are situated, but where business or commercial activities are conducted in respect of such monuments | NONE |
(xxv) Properties owned by public benefit organizations and used to further the objectives of such organizations | 80% |
(xxvi) The rate payable by agricultural and public sector infrastructure properties will be equal to seventy five percent (75%) of the residential rate payable. The differential rate will calculated as follows:(a) a 5% differential due to the fact that the municipality does not provide municipal roads;(b) a 5% differential due to the fact that the municipality does not provide sewerage services;(c) a 5% differential due to the fact that the municipality does not provide electricity services;(d) a 10% differential due to the fact that the municipality does not provide water services;(e) a 10% differential due to the fact that the municipality does not provide refuse removal services;(f) a 10% differential due to the fact that the farm owner supplies 1 to 10 houses to farm workers;(g) a 20% differential due to the fact that the farm owner supplies more than 10 houses to farm workers;(h) a 10% differential due to the fact that the owner supplies work opportunities for less than 10 permanent farm workers;(i) a 20% differential due to the fact that the farm owner supplies work opportunities for more than 10 permanent farm workers. | Â |
1. ONLY ONE OF (F) & (G) CAN BE APPLICABLE2. ONLY ONE OF (H) & (I) CAN BE APPLICABLE | Â |
CATEGORY OF OWNERS | ADDITIONAL REBATES TO BE GRANTED |
---|---|
(i) Property owners who are over 60 years of age, who are both the permanent occupants and the sole owners of the property. | 30% of the rates based on the ratable value |
(ii) Owners of properties being developed for approved commercial or industrial usage | 80% of the rates based on the ratable value until the development is completed, |
16. Frequency of payments
Payments for rates shall be made monthly on or before the date specified in each monthly rate account, which date shall be the 15th day of the month concerned or if the 15th is not a business day, the business day immediately following the 15th.17. Correction of errors and omissions
18. Frequency of valuations
The municipality shall prepare a new valuation roll every 4 (four) years and supplementary valuation rolls every 6 (six) months or once yearly.Part IV – Credit control and debt collection
19. Objective constitutional obligations
The council of the municipality, in adopting this policy on credit control and debt collection, recognises its constitutional obligations to develop the local economy and to provide acceptable services to its residents. It simultaneously acknowledges that it cannot fulfill these constitutional obligations unless it exacts payment for the services which it provides and for the taxes which it legitimately levies – in full from those residents who can afford to pay, and in accordance with its indigency relief measures for those who have registered as indigents in terms of the council’s approved indigency management policy.20. Notice of default and intended termination or restriction of services
Within 2 (two) calendar days after each monthly due date for payment of municipal accounts for property rates and/or service charges, the municipal manager shall dispatch to every defaulting accountholder, that is, every accountholder who as at the date of the notice has not paid the monthly account in full or has not made an acceptable arrangement with the municipal manager for partial or late payment, a notice stating that unless full payment is received or an acceptable arrangement made with the municipal manager for partial or late payment, the municipal electricity or water supply or both such supplies to the property to which the account in arrears relates shall be terminated or restricted 5 (five) working days after the date of the notice concerned.21. Reconnection or reinstatement of terminated or restricted services
22. Periods for reconnections or reinstatements
The municipal manager shall reconnect or reinstate terminated or restricted services within 3 (three) working days after the date on which the conditions set out in Section 20 above have been met, unless the municipal manager is unable to do so because of circumstances beyond the control of the municipality.23. Illegal reconnections
24. Restrictions of services
If the municipal manager is of the opinion that the termination of services, in the case of a particular property in respect of which the account is in arrear, is not in the best interests of the community – specifically because of the potential endangerment of the life of any person, whether resident in or outside the property concerned – the municipal manager may appropriately restrict rather than terminate the services in question.25. Services not reconnected or reinstated after four weeks
26. Arrangements for payment of arrear accounts
INDIGENT CASE | |
OUTSTANDING DEBT | PAYMENT PER MONTH IN AREARS |
---|---|
0 - 500 | R100.00 |
501 - 1000 | R200.00 |
1000 and more | R300 |
NOT AN INDIGENT CASE | |
---|---|
OUTSTANDING DEBT | PAYMENT PER MONTH IN ARREARS |
0 - 1000 | R350.00 |
1001 - 2500 | R550.00 |
2501 - 5000 | R700.00 |
5001 - 10000 | R1000.00 |
10001 - 20000 | R1500.00 |
20001 and more | 3000.00 |
27. Service contract
28. Payment of deposits
Whenever a service contract is entered into in terms of Section 26 above, the signatory shall lodge a cash deposit with the municipality, such deposit will be determined in the annual budget of each financial year.29. Allocation of part-payments and appropriation of deposits
30. Queries by account holders
31. Inability to read meters
32. Dishonoured and other unacceptable cheques
If an accountholder tenders a cheque which is subsequently dishonoured by or is found to be unacceptable to the accountholder’s or the municipality’s bankers, the municipal manager shall – in addition to taking the steps contemplated in these by-laws against defaulting accountholders – charge such accountholder the penalty charge for unacceptable cheques, as determined by the council from time to time, and such charge shall rank equally with the costs and expenses incurred by the municipality for purposes of determining the sequence of allocations and appropriations contemplated in Section 28 above.33. Interest on arrears and other penalty charges
34. Indigency management
In regard to the payments expected from registered indigents, and the credit control and debt collection actions contemplated in respect of such residents, this part of the by-laws must be read in conjunction with the policies on indigency management.35. Arrears which have arisen prior to the adoption of the present policy
Part V – Indigency management
36. Objective
Because of the level of unemployment and subsequent poverty in the municipal area, there are households which are unable to pay for normal municipal services. The municipality therefore adopts its indigency management policy and attendant by-laws to ensure that these households have access to at least basic municipal services, and is guided in the formulation of this policy and by-laws by the national government’s policy in this regard.37. Who qualifies for indigent support
38. Application of the policy
39. Non-compliance of households registered as indigent
40. Tampering of meters
Objective
Unauthorized use of property of the Council
Municipality’s right of access to premises
Power to restrict or terminate supply of services
Illegal reconnections and/or tampering
Visiting Indigent Households
History of this document
01 July 2014
Commenced