Municipal Fiscal Powers and Functions Act, 2007 (Act No. 12 of 2007)Chapter 2 : Municipal Tax5. Application for authorisation |
| (1) | A municipality, group of municipalities or organised local government must submit an application to the Minister, which application must— |
| (a) | set out the reasons for the imposition of the proposed municipal tax; |
| (b) | the purposes for which revenue derived from the collection of the municipal tax will be utilised; |
| (c) | give particulars on the proposed municipal tax's compliance with section 229(2)(a) of the Constitution; |
| (d) | give particulars on the proposed municipal tax's compliance with the prohibition contained in section 229(1)(b) of the Constitution; |
| (e) | identify and, where appropriate, describe— |
| (i) | the tax base; |
| (ii) | the desired tax rate; |
| (iii) | the persons liable for the tax; and |
| (iv) | any tax relief measures or exemptions; |
| (f) | specify— |
| (i) | the tax-collecting authority; |
| (ii) | the persons responsible for remitting the tax; |
| (iii) | the methods and likely costs of enforcing compliance with that tax; |
| (iv) | the compliance burden on taxpayers; and |
| (v) | procedures for taxpayer assistance; |
| (g) | give particulars of, and describe the estimation methods and assumptions used to determine— |
| (i) | the amount of revenue to be collected on an annual basis over the three municipal financial years following the introduction of the municipal tax; |
| (ii) | the economic impact on individuals and businesses; and |
| (iii) | the impact on economic development; |
| (h) | give particulars of any consultations conducted, including consultations with, where applicable, a provincial government, organised local government and municipalities, and the outcomes of such consultations; |
| (i) | give particulars of any consultations with the South African Revenue Service and any other collecting agent contemplated in section 7, regarding the administration of the proposed municipal tax; and |
| (j) | include such other information as may be prescribed. |
| (2) | If the Minister intends authorising the municipal tax in respect of which an application was submitted, the Minister must— |
| (a) | notify the municipality, group of municipalities or organised local government and the Minister responsible for local government in writing within six months of submission of the application of his or her intention; and |
| (b) | by not later than six months after that notification or such longer period as may be necessitated in complying with section 10(4)(c), prescribe the regulations contemplated in section 6. |
| (3) | In the event that the Minister does not approve the municipal tax in respect of which an application was submitted, the Minister must, within six months of submission of the application, notify the municipality, group of municipalities or organised local government and the Minister responsible for local government in writing of his or her decision and the reasons therefor. |