A section of the Local Government Amendment Laws Act, rushed through Parliament in 2002 to include controversial provisions allowing the Cape Town city council to base property rates on market value, has been declared unconstitutional by the Cape High Court.
Judge Lee Bozalek found section 21 of the act "inconsistent with the constitution and invalid" because it allowed for insufficient public participation in the legislative process and because the Finance and Fiscal Commission had not been consulted.

His judgment now goes to the Constitutional Court for confirmation. Parliament may be required to redraw certain aspects of the legislation.

Bozalek also found the city council's resolution in May 2002, that rates be levied in accordance with the 2000 general valuation roll, was "unconstitutional ".

He granted an interdict to restrain the council from levying and recovering property rates on valuations contained in the provisional roll.
However, Bozalek suspended his orders for a year, as its immediate implementation was potentially a " recipe for administrative confusion, if not chaos".