Division of Revenue Act, 2011 (Act No. 6 of 2011)Chapter4 : Matters Relating to All Allocations25. Transitional arrangement relating to re-demarcation of municipal boundaries |
| 1) |
| a) | A municipality (the releasing municipality) from which a particular area is transferred at the commencement of or through the implementation of legislation, which re-demarcates municipal boundaries and addresses associated matters, must continue to spend its allocations for the 2011/12 financial year made in terms of this Act, in that particular area or municipality, as if that area was not transferred to another municipality (the receiving municipality), unless the affected municipalities have entered into an agreement that ensures that the relocated area or municipality is not negatively affected. |
| b) | The transferring national officer of an allocation made in terms of this Act and the receiving municipality must monitor that the releasing municipality complies with paragraph (a). |
| c) | The releasing municipality must, at the request of the transferring national officer, the receiving municipality or the National Treasury, demonstrate compliance with paragraph (a). |
| 2) |
| a) | The provisions of sections 16 and 17 apply with the necessary changes where a releasing municipality fails to comply with subsection (1) (a) or (c) in respect of a Schedule 4, 6 or 7 allocation. |
| b) | The National Treasury may, where it withholds or stops an allocation in terms of paragraph (a), after consultation with the transferring national officer, determine that a portion of the allocation be reallocated to the receiving municipality. |
| 3) | The National Treasury may, where a releasing municipality fails to comply with subsection (1) (a) or (c), reallocate a portion of the releasing municipality’s equitable share allocation referred to in section 5 to the receiving municipality. |
| 4) |
| a) | The allocations referred to in sections 5 (2) and 8 (2) are subject to adjustments necessitated by the implementation of the legislation which re-demarcates the municipal boundaries. |
| b) | The transferring national officer of a Schedule 4, 6 or 7 allocation must, by 15 September 2011, inform the National Treasury of any adjustments to the allocations referred to in section 8(2) that must be reflected in the Division of Revenue Act for the next financial year. |