Property Rates as an Instrument for Development: An Analysis of South African Policy, Law and Practice (original) (raw)
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Law, Democracy and Development, 2020
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Differentiation does not automatically mean that a person's right to equality has been infringed on. Thus, the mere fact that taxpayers are subject to different property tax rates in South Africa depending on the municipality in which the property falls does not necessarily result in an infringement of section 9 of the Constitution: a specific analysis is required in order to determine the constitutionality thereof. In this article, we examine whether the different rates applicable to properties based on where the property is situated are constitutionally sound vis-à-vis the right to equality. In order to do so, we compare the property tax rates and rebates that apply in respect of residential property in the capital cities of the nine provinces in South Africa. The first part of the article considers the general approach adopted by the courts in establishing whether section 9 of the Constitution has been violated. The second part discusses the legislative framework of property ...
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The property tax is considered to be a good tax for local governments, mainly because of the connection between the types of services funded at the local level and the benefit to property values. Yet, property tax revenues rarely account for more than 3 percent of Gross Domestic Product (GDP) in any country. This paper explains why the property tax
Property rates are important revenue items to local government units all over the world. This is due to the fix nature of its components, which makes it predictable. However, local governments find it difficult to effectively mobilise revenues from this important source. This study thus examined mechanisms and strategies adopted towards mobilisation of property rate, in the specific context of Kassena-Nankana Municipality of Ghana. Adopting a case study, data was collected through interviews with key officials of the Municipality and randomly selected revenue collectors and property owners. The study revealed that, property valuation was carried out in 2009, which was used to rate items for taxation. Revaluation, which is due every five years by statutory provision, was however not carried out in 2014 due to limited resources and lack of expertise. The study further revealed that, the Municipality employs many mechanisms in order to maximise revenues from the already flawed property rate system. Some of these included instituting a property rate task force; sensitisation of the public through radio discussions and announcements; sanctioning of tax defaulters; regular training of revenue collectors; intensification of street naming and property addressing system; designing of revenue database; and outsourcing collection of certain property taxes to private entities. Despite these mechanisms and strategies, property rate mobilisation was still hampered by the absence of professional valuation officers; low commitment and lack of political will to enforce regulations; lack of will to pay among property owners; and incomplete administrative setup for property rate mobilisation. To improve property rate mobilisation at the local level, monitoring and supervision of processes must be made more regular and effective by relevant institutions; institutions responsible for mobilization must be equip with adequate logistics; local property rate database must be setup and updated regularly; political interference in tax mobilization should be minimized, and government should make efforts to train more valuation officers in the country by revamping the National Valuation School.