The city recategorised the Afrikaner settlement Kleinfontein to non-permitted use, which sets its rates tariff at 7.5 times that of normal residential property. Picture: Kleinfontein Facebook page The City of Tshwane has confirmed that it has no immediate plans to levy property rates at the appropriate punitive scale in the numerous illegal developments in and around Pretoria, despite its dire financial situation. That means other property owners will continue to subsidise them by paying more, since the amount of revenue the city budgets for is spread proportionally among the paying owners.
This comes as the city is trying to delay the court-ordered payment of around R1.5 billion in salary increases for municipal staff outstanding since 2022, because it does not have the money to do so. Lex Middelberg, councillor for the Republican Conference of Tshwane, points out that the city is acting inconsistently, since it had recategorised the illegal Afrikaner settlement Kleinfontein to non-permitted use, which sets its rates tariff at 7.5 times that of normal residential property. Moneyweb previously reported that Kleinfontein’s total monthly property rates bill jumped R5 230 in August to R126 148 in September 2024 due to the recategorisation. Responding to an enquiry from Moneyweb, Tshwane MMC for Human Settlements Alderman Aaron Maluleka says: “The city has not adopted a position to automatically recategorise illegal developments as ‘unpermitted use’ for property tax purposes.” “Any decisions relating to valuation or taxation will be informed by the approved framework, applicable legislation and council processes,” says Maluleka.
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