The City of Cape Town has announced the implementation of 11 new property categories aimed at enabling lower or no rates for Non-Profit Organisations (NPOs) and other charitable property owners including organisations offering shelter to street people, early child development and youth development.
The new categories have a reduced ‘rate-in-the-rand’ which means that less or no property rates will apply to these categories. The City will provide continued assistance of R3.3 billion to residents and rate payers over the new financial year, which commenced on the 1st of July 2020.
The City’s Mayoral Committee Member for Finance and Executive Deputy Mayor, Alderman Ian Neilson says that public benefits and non-profit organisations providing a haven for street people, caring for war veterans, youth, children and our shared natural heritage play a crucial function and an essential service in our communities.
“They add to the well-being of our city and its people especially during these very trying times. This is part of our overall efforts to help those who have been severely impacted by the COVID-19 crisis”.
Amendments to the Local Government Municipal Property Rates Act limited the City’s discretion to assist certain Public Benefit Organisations (PBOs) and Non-Profit Organisations (NPOs) that have previously benefited from rates rebates but have fallen off the list due to legislative changes.
The 11 new property categories are:
- Cemeteries and crematoria.
- Properties owned by ‘not for profit organisations’ and used for animal shelters.
- Properties owned by ‘not for profit organisations’ and used as an early childhood development facility.
- Properties owned for ‘not for profit organisations’ and used for youth development.
- Properties owned for ‘not for profit organisations’ and used for street people shelters.
- Properties owned for ‘not for profit organisations’ and used as a local community museum.
- Properties owned for ‘not for profit organisations’ and used for an old age home.
- Properties owned for ‘not for profit organisations’ and used exclusively for amateur sport.
- Properties owned by a Social Housing Regulatory Authority – an accredited Social Housing Institution and used for social housing.
- Properties owned by war veterans’ associations and used for the welfare of war veterans.
- Nature conversation land.
The new property categories have been added to the existing rating categories, namely:
- Agricultural properties.
- Business and commercial properties.
- Industrial properties.
- Mining properties.
- Properties used for multiple purposes.
- Properties owned by an Organ of State and used for public service purposes.
- Properties owned by Public Benefit Organisations and used for Specified Public Benefit Activities.
- Public Service Infrastructure (PSI).
- Residential properties.
- Vacant land.
Organisations that qualify for the 11 new property categories may apply here.