2014-2018 MUNICIPAL VALUATION ROLL
The head of the contracted Municipal property valuators, to determine Hessequa’s property valuation roll, recently afforded our vice chairman, Jack Walsh, an appointment to discuss the approximate methodology that they apply in effecting this work.
What follows is his understanding thereof, somewhat summarised, for our member’s guidance.
1. Inside town boundaries the Erf will be valued only broadly according to its size unless it is large enough to be subdivided when size will then be taken proportionately into account.
Undeveloped agricultural ground will be valued as Class A agricultural, but the ground that a property stands on will be valued as an ordinary erf subject to the following criteria for town property.
In prime situations, such as uninterrupted view with access directly to the coast or river bank, an erf will be valued as Class 1.
An uninterrupted view only would probably be Class 2.
And the rest Class 3.
Buildings have for the most part only two rates per sq metre applied according to its outside condition, with a lower rate applicable to utility buildings. The quality of internal finishes is not taken into account.
2. Please remember that rates for everything are computed from average sales values obtained in an area over the last 6 to 24 months according to the amount of all sales achieved.
3. Accomodation property, such as B & B’s, is handled on much the same basis as residential. Larger establishments are treated differently.
4. Industrial and commercial properties have their ground rated according to size and buildings at one rate according to its use. I.E. Offices or accommodation different to storage or manufacturing or shop space. Location is not much of a factor. Sales prices obtained in the area are.
5. Agricultural ground is based primarily on the size of the ground according to its use or potential use.
Class A – Prime is based on crop usage whether cultivated or fallow.
Class B – Undeveloped, suitable but not used.
Class C – Suitable only for say grazing or forestry.
Class D – Unsuitable such as mountainside.
Coastal homes on agricultural land will be broadly based on town criteria in respect of the building and immediate ground on which the property stands, with undeveloped coastal ground being treated as Class A agricultural.
6. If you are unhappy with your declared valuation as it appears on the valuation roll next year, you must lodge an objection, which will then be heard by an appeal board duly constituted for that purpose.
Remember the only valid grounds for an objection are that you honestly feel that your property’s valuation exceeds the price you would sell it for in line with current sales values, assuming you were a seller, by a meaningful amount. Otherwise you are simply wasting your time and the Municipality’s money which is yours anyhow!
7. If you have any queries you are welcome to phone (not Email) Jack Walsh.
8. The new values will come into effect for the coming Municipal year July 2014. The fractional tax rate applicable will however probably be known only in April or May. Theoretically if your valuation stays the same or increases, you can expect to pay more than the anticipated 10% increase for next period. If your valuation decreases moderately, your rates and taxes should increase by about 10% in line with the projected Municipal Budget.