Lower or no rates for some NPOs, shelters, old age homes, nature conservation land and social housing

New property categories have been implemented from 1 July 2020 to enable lower or no rates to be charged for Non-Profit Organisations (NPOs) and other charitable property owners, including organisations offering shelter for street people, early childhood development and youth development.

The new categories have a reduced Rate-in-the-Rand which means that less or no property rates will apply for these categories. The City has also availed continued assistance of R3,3 billion to residents and ratepayers over the new financial year, which started on 1 July 2020.

‘Public benefit and non-profit organisations such as those providing a haven for street people, those caring for war veterans, youth, children and our shared natural heritage in particular perform an absolutely crucial function and essential service in communities. That is why we have focused much attention on ways to help these organisations.  

‘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,’ said the City’s Mayoral Committee Member for Finance, and Executive Deputy Mayor, Alderman Ian Neilson.

Amendments to the Local Government: Municipal Property Rates Act limited the City’s discretion to assist some public benefit organisations (PBOs) and non-profit organisations (NPOs) that had previously benefited from rates rebates but had fallen off the list due to the legislative changes. After much work and legal input and with Council’s approval, 11 new categories for rates relief has been added from 1 July 2020, which brings the necessary rates relief to some organisations.

11 New property categories

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 by not for profit organisations and used for youth development

Properties owned by not for profit organisations and used for street people shelters

Properties owned by not for profit organisations and used as a local community museum

Properties owned by not for profit organisations and used for an old age home

Properties owned by not for profit organisations and used exclusively for amateur sport

Properties owned by a Social Housing Regulatory Authority-accredited Social Housing Institution and used for social housing

Properties owned by war veterans’ associations and used for the welfare of war veterans

Nature conservation land

These new property categories are thus 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 by visiting http://www.capetown.gov.za/Work%20and%20business/Commercial-properties/Property-valuations/property-rates

For general enquiries, please contact: BusinessIntegration&ValuationsRegulation@capetown.gov.za

In addition to the above, the City has announced financial assistance, payment arrangements and other relief options for property owners and residents who have been severely affected by the COVID-19 crisis and national lockdown: Please visit www.capetown.gov.za/coronavirus