GVR Matters, Municipal Matters

What to Do if You Miss the Property Valuation Objection Deadline.

Posted on by CAN Team

This article, originally published by HBG Schindlers Attorneys, explains steps property owners can take to address errors on municipal valuation rolls even after the formal objection window has closed.

Understanding the Objection Window

The Municipal Property Rates Act 6 of 2004 (the Act) governs property valuations by municipalities. Municipalities must advertise valuation rolls for public inspection and objection for at least 30 days (often longer), referred to as the “objection window period.” During this time, property owners must review the roll and submit objections if they disagree with the valuation or categorization of their property.

While municipalities typically don’t accept late objections, exceptional circumstances may allow for exceptions.

Re-Valuation and Re-Categorization Outside the Objection Window

Under Section 78 of the Act, municipalities can investigate and adjust property valuations or categorizations after the objection window closes. This provision is crucial for cases where:

  • A vacant property has been developed.
  • The initial valuation or categorization was significantly incorrect.

Section 78 mandates the publication of a supplementary roll annually, allowing municipalities to update properties for reasons like subdivision, development, or incorrect initial valuation.

Submitting a Section 78 Enquiry

Property owners who missed the objection window or identify errors can submit a Section 78 enquiry. This process requests the municipality to:

  1. Investigate the incorrect valuation or categorization.
  2. Include the property on the next supplementary roll.

Once listed on the supplementary roll, property owners can formally object. If the property is omitted, owners can lodge an “omission objection” addressing both the omission and prior errors.

Retrospective Adjustments

Successful objections under Section 78 can lead to retrospective corrections:

  • Reduced Valuation or Categorization: Adjustments are backdated to either the General Valuation (GV) start date or the date the change occurred, resulting in refunds or account credits.
  • Increased Valuation: Changes take effect only from the supplementary roll’s commencement date.

Section 78(5) Reviews

Municipalities can also independently initiate re-valuations or re-categorizations under Section 78(5). Property owners receive notices and can submit representations. If the municipality proceeds:

  • Changes take effect immediately, impacting billing.
  • Owners can object formally once the supplementary roll is published.
  • If objections succeed, incorrect billing will be retrospectively corrected.

Billing Adjustments After Objections

Once a valuation is adjusted following an objection or appeal, the municipality must reverse or write off any overcharges. If this adjustment isn’t made promptly, legal assistance may be necessary to address the billing issue.

Key Point: Billing disputes are handled by the municipality’s revenue/finance department, not the valuations department.

Municipal staff may mistakenly claim that corrections can’t be made after the objection period, but Section 78 ensures a mechanism exists to address valuation errors. If you encounter such issues, act promptly to protect your rights and pursue the necessary adjustments.

CAN Team