The municipal property rates are calculated based on the value of the property. For the financial year 2009/10, the rates structures for the three municipalities were as depicted in the table below:
| Property type | Municipal area |
| eThekwini | Msunduzi* | uMhlathuze |
| Buildings | Residential | 0.000100 – 0.002089 | 0.017169 | 0.00468 |
| Business & commercial | 0.000100 – 0.006266 | 0.017169 | 0.00936 |
| Industrial | 0.000374 – 0.002173 | 0.017169 | 0.00936 |
| Land | Agricultural | | 0.087196 | 0.00117 |
| Agricultural (business) | | 0.087196 | 0.00936 |
| Vacant land | 0.000100 – 0.010444 | 0.087196 | |
* Msunduzi figures are for 2007/08 financial year
The eThekwini property rates range depending on the location of the property, with the outer areas more affordable than the central business district.
For more information on the rates and other tariffs, please visit the municipalities’ websites:
eThekwini (Durban): www.durban.gov.za
uMhlathuze (Richards Bay): www.richemp.gov.za
Msunduzi (Pietermaritzburg): www.msunduzi.gov.za
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1. (a) In terms of the Rates Policy 2009/2010 adopted by the Council on 2009-02-26
the Municipality may levy different Rates for different categories of Property.
(i) The rates randage for the financial year 1 July 2009 to 30 June 2010 for the eThekwini Municipality was assessed and levied for the following categories at:
• Residential at 0.9 cents in the Rand;
• Agricultural at 0.24 cents in the Rand;
• Industrial at 2.58 cents in the Rand;
• Business and commercial at 2.01 cents in the Rand;
• Public service infrastructure at 0.24 cents in the Rand;
• Vacant land at 3.78 cents in the Rand;
• Unauthorised or illegal development at 3.78 cents in the Rand.
(ii) Multiple Use Property will be dealt with in accordance with the Rates Policy.
2. In accordance with the Rates Policy 2009/2010 the following reductions on the market value of the property and the rebates on the rates payable and exemptions, be and are hereby granted:
(a) In respect of residential property, in addition to the statutory reduction of R 15 000, a further reduction of R 105 000 be and is hereby approved;
(b)(i) that in addition to the reduction in 2 (a) above a rebate not exceeding R 2 520 or such lesser amount as may be otherwise be payable, be and is hereby approved for pensioners, disability grantees / medically boarded persons and child headed households. (Note: the rebate of R 2 520 equates to an additional reduction of R 280 000 on the market value);
(ii) That it be and is hereby resolved not to place a maximum limit on the value of the property, in order to qualify for the rebate in (b) (i) above.
(c) That a reduction of R 30 000 on vacant land be and is hereby approved;
(d) That a rebate of 50% be and is hereby granted to schools not for gain;
(e) Properties owned by the Municipality or occupied for development housing are exempt from rates except properties owned by trading services;
(f) Public Service Infrastructure will be not rated on the first 30% of market value
(g) Proclaimed nature reserves / conservation areas will be exempt from rates;
(h) That a rebate of 50% be granted to all Bed and Breakfast undertaking, that has a valid Registration Certificate issued by Ethekwini Municipality;
(i) That a rebate of 25% is and hereby approved to all Guest House undertaking which has a valid Registration Certificate issued by Ethekwini Municipality.
3. In accordance with the Rates Policy 2009/2010, the following apply to Special Rating Areas:
(a) That the Special Rating Areas as indicated hereunder be and are hereby established;
(b) That in respect of Special Rating Areas additional rates, as indicated hereunder, be approved and levied in respect of each category of property within the boundaries of the Special Rating Area.
| Special Rating Areas | Residential | Business & Commercial | Industrial | Vacant Land |
| (a) Precinct bordered by Monty Naicker Road (Pine Street), Dorothy Nyembe (Gardiner), Anton Lembede (Smith) and Dr Yusuf Dadoo (Broad) Streets. | 0.000910 | 0.0027431 | 0 | 0.004552 |
| b) Precinct bordered by Soldiers Way, Dr AB Xuma Street (Commercial Road) , Florence Nzama Street (Prince Alfred Street) and Braam Fischer Road (Ordnance Road). | 0 | 0.000321 | 0.000374 | 0.00534 |
| c) Precinct bordered by Dorothy Nyembe Street (Gardiner Street), Margaret Mncadi Avenue (Victoria Embankment), Beach Walk and Anton Lembede Street (Smith Street). | 0 | 0.000321 | 0.000374 | 0.00534 |
| d) Precinct bordered by Soldiers Way, Braam Fischer (Ordnance), Sylvester Ntuli (Brickhill) and K E Masinga (Old Fort) Roads. | 0 | 0.000321 | 0.000374 | 0.00534 |
| e) Precinct bordered by O R Tambo Parade (Lower Marine Parade), West Street Mall, Rutherford and Gillespie Streets (South Beach Area). | 0.001051 | 0.003152 | 0 | 0.005253 |
| f) Umhlanga Promenade Precinct bordered by Ocean Way (South), Lot 430 (North), Lagoon Drive (West) and the Indian Ocean (East). | 0.000621 | 0.001862 | 0.002173 | 0.003104 |
| g) Precinct bordered by Burlington Road, Burlington Drive, Nagel Road, Windsor Road, Midmar Road and Henley Road. | 0.002089 | 0.006266 | 0 | 0.010444 |
| h) Umhlanga Village bordered by Flamingo Lane, Ocean Way, Lagoon Drive, McCauland Crescent, Weaver Crescent and M4 Highway. | 0 | 0.001891 | 0 | 0 |
| i) Giba Gorge bordered by N3 Highway (South), Reservoir Road, Jan Smuts Avenue, Galloway Lane, Mountbatten Place, Alexander Drive, M13 Highway (East), Portion 157 of Clifton (North) to Saint Helier Road (West). | 0.000100 | 0.000100 | 0 | 0.000100 |
4. That the following phasing in of rates be and are hereby approved subject to Section 21 of The Local Government: Municipal Property Rates Act 6 of 2004:
(a) A rate levied on newly rateable property must be phased in over a period of three financial years, with the following phasing in discounts:
(i) 75% for the first financial year;
(ii) 50% for the second financial year;
(iii) 25% for the third financial year.
(b) A rate levied on property belonging to a Land Reform Beneficiary or his or her heirs must, after ten years from the date on which such beneficiary’s title was registered in the office of the Registrar of Deeds, be phased in over a period of three financial years, with the following phasing in discounts:
(i) in the first financial year; 75% of the rate for that year otherwise applicable to the property;
(ii) in the second financial year; 50% of the rate for that year otherwise applicable to the property;
(iii) in the third financial year; 25% of the rate for that year otherwise applicable to the property.
(c) A rate levied on newly rateable property owned and used by organizations conducting Specified public benefit activities and registered in terms of the Income Tax Act for those activities must be phased in over a period of four financial years, with the following phasing in discounts:
(i) 100% in the first financial year;
(ii) 75% in the second financial year;
(iii) 50% in the third financial year;
(iv) 25% in the fourth financial year.