GVR Matters

GVR: What you need to know

Posted on by CAN Team

Article Credit: Written by Katleho Selepe, Candidate Attorney, reviewed by Lauren Squier, Associate, and released by Chantelle Gladwin-Wood, Senior Partner at hbgschindler’s Attorneys.

Understanding Valuation Rolls: A Guide for Property Owners

What is a Valuation Roll?
A valuation roll is a municipal database compiled under the Local Government: Municipal Property Rates Act No. 6 of 2004 (“the Act”). It contains the municipal valuations for all properties within a municipality’s jurisdiction. General valuation rolls (GVs) are updated periodically—typically every 4-5 years—and new properties are added through supplementary rolls.

The information in these rolls determines your property rates and taxes. Every property owner should ensure their property is accurately valued and categorized within these rolls.

Why You Should Check the Valuation Roll
It is the property owner’s responsibility to verify the valuation and categorization of their property when the roll is published. Failure to object within the designated period could lock the valuation and categorization for the roll’s duration (4-5 years). Incorrect valuations can lead to inflated property rates, while inappropriate categorization could result in overpayment.

Valuation and Categorization Explained
Each property is assigned:

  1. A valuation: Displayed in rands, reflecting the property’s market value.
  2. A categorization: Determining the tariff rate, such as residential, business, or vacant. Misclassification (e.g., residential property categorized as business) could significantly inflate rates.

What is Market Value?
Market value is the price a willing buyer would pay a willing seller in an open market. While professional valuers provide accurate valuations, property owners can seek free estimates from estate agents or use automated valuation tools like Windeed, though these tools may lack accuracy for unique property attributes.

Steps if You Disagree with Your Valuation or Categorization

  1. Object: Submit an objection to the municipality, providing reasons. If valid, the municipality will amend the valuation or categorization.
  2. Appeal: If your objection is rejected, appeal to the Valuations Appeal Board within 30 days.
  3. Legal Recourse: If the Board rejects your appeal, consult an attorney to explore legal options, including a court review.

Objections Outside Prescribed Periods
If errors exist in valuation or categorization, you may still approach the municipality under Section 78 of the Act to rectify them, even after the objection period has closed.

Conclusion
Valuation rolls determine the rates charged for your property. It is essential to verify the accuracy of the information and promptly object if discrepancies arise. By taking these steps, property owners can ensure they are not overcharged due to incorrect valuations or categorization.

Key Takeaway
Property owners disputing valuations or categorizations must act within the specified periods. Timely objections safeguard your financial interests and ensure fair municipal property rates.

CAN Team