Start Date
26-6-2025 11:00 AM
End Date
26-6-2025 12:15 PM
Description
Theory suggests that the recurrent property tax is a good local tax (Youngman, 2016). Most countries have a form of property tax that is an important source of own source revenue for local government. Market value is well regarded as the most appropriate base for property taxation as it is considered both fair and equitable and considers the general ability to pay. In South Africa, the Local Government: Municipal Property Rates Act, 6 of 2004 (hereafter “MPRA”) regulates recurrent property tax, known as property rates. Property rates are levied by municipalities. The MPRA also provides for the assembly and maintenance of municipal registers of properties. These registers or inventories provide the coverage required for property rates. This presentation reviews how the municipal registers of properties are currently implemented from legislative, institutional, and operational perspectives. The municipal registers of properties establish rates coverage. A consistent understanding of the utility of the municipal registers of properties and the operational tasks required to establish and maintain these registers will contribute to more efficacious rating. This presentation evaluates the potential of the municipal registers of properties as an instrument for more successful municipal financial reporting as well as exploring potential applications towards improved land administration in South Africa. The presentation reviews how with certain legislative amendments, adjustments to institutional arrangements, careful review of operational workstreams together with rigorous monitoring and oversight, the geospatial municipal registers of properties could contribute a lot more than their present role of providing coverage for property rating. The role of the municipal register of properties should be elevated from providing coverage for property rates to a governance instrument for local government.
Recommended Citation
Channing, Janet, "Shaping the future of property valuation in South Africa: The role of coverage" (2025). Mass Appraisal Valuation Symposium. 17.
https://researchexchange.iaao.org/mavs/mavs2025/sessions/17
Shaping the future of property valuation in South Africa: The role of coverage
Theory suggests that the recurrent property tax is a good local tax (Youngman, 2016). Most countries have a form of property tax that is an important source of own source revenue for local government. Market value is well regarded as the most appropriate base for property taxation as it is considered both fair and equitable and considers the general ability to pay. In South Africa, the Local Government: Municipal Property Rates Act, 6 of 2004 (hereafter “MPRA”) regulates recurrent property tax, known as property rates. Property rates are levied by municipalities. The MPRA also provides for the assembly and maintenance of municipal registers of properties. These registers or inventories provide the coverage required for property rates. This presentation reviews how the municipal registers of properties are currently implemented from legislative, institutional, and operational perspectives. The municipal registers of properties establish rates coverage. A consistent understanding of the utility of the municipal registers of properties and the operational tasks required to establish and maintain these registers will contribute to more efficacious rating. This presentation evaluates the potential of the municipal registers of properties as an instrument for more successful municipal financial reporting as well as exploring potential applications towards improved land administration in South Africa. The presentation reviews how with certain legislative amendments, adjustments to institutional arrangements, careful review of operational workstreams together with rigorous monitoring and oversight, the geospatial municipal registers of properties could contribute a lot more than their present role of providing coverage for property rating. The role of the municipal register of properties should be elevated from providing coverage for property rates to a governance instrument for local government.