CoCT property rates: 60% of households to see relief despite valuation growth

The City of Cape Town said most homeowners can expect relief from property rates despite strong growth in the latest general valuation on Wednesday. 

About 60% of households were expected to see a decrease or no change in their municipal rates after the city announced plans to cut the residential rate in the rand by 10.2%. 

The metro said it would also expand rates exemptions to protect lower and middle-income households. 

City spokesperson Luthando Tyhalibongo said: "These include lowering the residential property rates formula by 10.2%, making the first R500,000 of a property’s value rates free, and extending this benefit to all homes valued up to R8 million." 

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However, the Cape Town Collective Ratepayers’ Association warned many homeowners were already seeing sharp increases, some as high as 140%. 

Chairperson Bas Zuidberg said the city’s math did not add up.

"Essentially, it feels like a Black Friday sale. The city of Cape Town has increased the valuations first and is then giving us lower discounts, ending up with ratepayers paying more than they were paying before." 

The city has urged residents to check their property valuations online, saying more details will be provided when its draft budget is tabled later this month.