Legislation governing property taxes - the Property Rates Bill - will be  before Parliament this year, says  Provincial and Local Government Minister
Sydney Mufamadi.

Speaking in his Budget vote in the National Assembly the Minister said: 'We  do intend to present the Bill before Parliament this year.' The minister said the legislation had been 'reworked after a lengthy period  of consultation with stakeholders'.

Earlier this year he said it was expected the Bill would be promulgated  before the end of the year ahead of the 2003 financial year.
He told MPs that his department recognized that an improved billing system  and enhanced credit control policy was key to sustainability at local
government level.

The problem of municipal debt, he said, was attributable to three issues:

• The affordability of rates and tariffs as many people would
  simply not pay if they could not afford them;
• The level of services being provided by a municipality must
  justify the payment of rates:
• The administration of the collection of revenues must be
  effective to ensure people feel compelled to pay

Mufamadi said financially well-managed municipalities would increasingly be  able to capitalize on improvements in the their administration - with
accountability enhanced through the Municipal Systems Act and the Municipal  Finance Management Bill - which would would bring about changes in the  budget processes and reporting requirements.

Mufamadi has said that the Property Rates Bill would regulate property rates  in accordance with the constitution and provide a uniform and equitable  framework for the valuation of property for local rates policies.