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Local Government: Municipal Property Rates Act, 2004 (Act No. 6 of 2004)

Chapter 2 : Rating

Part 3 : Limitations on levying of rates

16. Constitutionally impermissible rates

 

 

(1) In terms of section 229(2)(a) of the Constitution, a municipality may not exercise its power to levy rates on property in a way that would materially and unreasonably prejudice—
(a) national economic policies;
(b) economic activities across its boundaries; or
(c) the national mobility of goods, services, capital or labour.

 

(2)

(a) If a rate on a specific category of properties, or a rate on a specific category of properties above a specific amount in the Rand, is materially and unreasonably prejudicing any of the matters listed in subsection (1), the Minister, with the concurrence of the Minister of Finance, must, by notice in the Gazette, give notice to the relevant municipality or municipalities that the rate must be limited to an amount in the Rand specified in the notice.
(b) A municipality affected by a notice referred to in paragraph (a) must give effect to the notice the effective date of which must be from the date determined by the Minister in the notice.

[Paragraph (2) (a) and (b) amended by section 12  of Act No. 29 of 2014]

 

(3)

(a) Any sector of the economy, after consulting the relevant municipality or municipalities and organised local government, may, through its organised structures, request the Minister to evaluate evidence to the effect that a rate on any specific category of properties, or a rate on any specific category of properties above a specific amount in the Rand, is materially and unreasonably prejudicing any of the matters listed in subsection (1).
(b) If the Minister is convinced by the evidence referred to in paragraph (a) that a rate on any specific category of properties, or a rate on any specific category of properties above a specific amount in the Rand, is materially and unreasonably prejudicing any of the matters listed in subsection (1), the Minister must act in terms of subsection (2).

 

(4) A notice issued in terms of subsection (2) must give the reasons why a rate on the relevant category of properties, or a rate on the relevant category of properties above the amount specified in the notice, is materially and unreasonably prejudicing a matter listed in subsection (1).

 

(5) The Minister, after consultation with the Minister of Finance, may by notice in the Gazette issue guidelines to assist municipalities in the exercise of their power to levy rates consistent with subsection (1).