The current and potential roles of municipal registers of properties in South Africa

Abstract

Theory suggests that the recurrent property tax is a good local tax (Youngman, 2016). Most countries have a form of property tax that is an important source of own source revenue for local government. Market value is well regarded as the most appropriate base for property taxation as it is considered both fair and equitable and considers the general ability to pay. The Local Government: Municipal Property Rates Act, 6 of 2004 (hereafter “MPRA”) regulates recurrent property tax, known as property rates in South Africa, and is levied by municipalities. The MPRA also provides for the assembly and maintenance of municipal registers of properties. These registers or inventories provide the coverage required for property rates. This thesis evaluates how the municipal registers of properties are currently implemented from legislative, institutional and operational perspectives. This research contributes to knowledge by developing a consistent understanding of the utility of the municipal registers of properties and the operational tasks required to establish and maintain these registers for more efficacious rating. This thesis evaluates the potential of the municipal registers of properties as an instrument for more successful financial reporting as well as exploring potential applications towards improved land administration in South Africa. The findings of this thesis indicate that, with certain legislative amendments, adjustments to institutional arrangements, careful thesis of operational workstreams and rigorous monitoring and oversight, geospatial municipal registers of properties may contribute a lot more than their present role of providing coverage for property rating. The role of the municipal register of properties should be elevated from providing coverage for property rates to the ‘single version of the truth’ for all property-related business processes in municipalities and beyond .