Local Government: Municipal Property Rates Act, 2004 (Act No. 6 of 2004)Chapter 2 : RatingPart 3 : Limitations on levying of rates21. Compulsory phasing-in of certain rates |
(1)
| (a) | A rate levied on newly rateable property must be phased in over a period of three financial years, subject to subsection (5). |
| (b) | A rate levied on property referred to in section 17(1)(g) must, after the exclusion period referred to in that section has lapsed, be phased in over a period of three financial years, subject to subsection (5) of this section. |
| (c) | A rate levied on newly rateable property owned and used by organizations conducting specified public benefit activities and registered in terms of the Income Tax Act for those activities must be phased in over a period of four financial years, subject to subsection (5). |
| (2) | The phasing-in discount on a property referred to in subsection (1)(a) or (b) must— |
| (a) | in the first year, be at least 75 per cent of the rate for that year otherwise applicable to the property; |
| (b) | in the second year, be at least 50 per cent of the rate for that year otherwise applicable to the property; and |
| (c) | in the third year, be at least 25 per cent of the rate for that year otherwise applicable to the property. |
| (3) | No rate may be levied during the first year on property referred to in subsection (1)(c). Thereafter, the phasing-in discount on such property— |
| (a) | in the second year, must be at least 75 per cent of the rate for that year otherwise applicable to the property; |
| (b) | in the third year, must be at least 50 per cent of the rate for that year otherwise applicable to the property; and |
| (c) | in the fourth year, must be at least 25 per cent of the rate for that year otherwise applicable to the property. |
| (4) | A rate levied on property referred to in subsection (1) may not be higher than the rate levied on similar property or category of properties in the municipality. |
| (5) | The MEC for local government may, on written request by a municipality, extend for that municipality the phasing-in period referred to in subsection (1)(a), (b) or (c) to a period which together with the initial period does not exceed six financial years. |
| (6) | When extending a phasing-in period, the MEC for local government must determine the minimum phasing-in discount on the rate payable during each financial year in the extended period. |