New property rates bad for tenants and bad for investors
http://www.moneyweb.co.za/mw/view/mw/en/page292525?oid=547827&sn=2009+Detail
He has said in a statement that the intention is only to change the rating of “guest-houses, bed-and-breakfast establishments, small hotels and the like..” . This does not make clear what the ANC government intends with regard to a holiday flat, for example, that is occasionally let.
Questions have been raised about the constitutionality of the bill. Without pronouncing on that, it does seem manifestly unfair. Rates levied on properties should be about land use and nothing else.
(via Instapaper)
What I’ve understood from the clarification is that rates will in fact be levied on land use rather than ownership. As explained, operating a guest house or hotel is a commercial activity (business conducted regularly) and the property should already be zoned for business. Such establishments operating on a residential zoned property is not allowed, and business rates are in order.
I just wonder why the bill did not simply state that residential properties with business rights or zoned as commercial should pay commercial rates. This would however include any business operating from home, irrespective of the nature of the business.
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