Lesedi municipality valuation roll battle heads to SCA
· Citizen
A landmark court victory for property owners over the legality of the Lesedi municipality’s 2024-29 general valuation roll is headed to the Supreme Court of Appeal after the High Court in Johannesburg granted the metro leave to appeal some aspects of its earlier ruling.
Acting Judge Chinthamoney Bhoola has ruled while the court stood by its finding that the municipality materially failed to comply with the statutory requirements of the Municipal Property Rates Act, another court could reach a different conclusion regarding the appropriate constitutional remedy.
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High Court upheld finding of unlawful rates roll
In February, the court declared the valuation roll unlawful and invalid after finding the municipality had failed to comply with Section 49 of the Act, which required metros to properly notify property owners of valuation rolls and their rights to object.
This is the same roll that triggered contentious increases which residents said far exceeded the advertised 4.9% hike for the 2024-25 financial year.
The court granted declaratory and consequential relief affecting the municipality’s 2024-25 property rates.
The municipality was ordered to recalculate its rates, credit any overpayments and issue adjusted statements within 60 days.
In seeking leave to appeal, the council said the court had misinterpreted Section 49 of the Act, incorrectly characterised the relief sought by applicants and granted orders that were vague and incapable of practical implementation.
Judge rejected arguments
But Bhoola rejected many of those arguments.
The ruling states several of the municipality’s grounds amounted to disagreements with the court’s reasoning and did not establish reasonable prospects another court would interfere with the findings.
Instead, the court found the appeal raised important legal questions regarding the constitutional consequences flowing from a declaration of invalidity.
The judge held that while the court remains satisfied that non-compliance with Section 49 constituted a material irregularity rendering the valuation process unlawful, appellate courts may reasonably differ on the scope of the remedy under Section 172 of the constitution.
These include whether relief should apply retrospectively or prospectively, whether it should be confined to specific financial years or parties, and what effect the declaration has on the implementation of the valuation roll.
Court granted municipality appeal
“The court is persuaded another court may reasonably arrive at a different conclusion regarding the remedial consequences of the declaration of invalidity,” Bhoola said in granting leave to appeal on Monday.
But she added: “The leave to appeal grant should not be misconstrued as an abandonment of the findings made in the principal judgment.” The appeal comes as property owners continue challenging their municipal accounts.
On Tuesday, about 70 ratepayers lodged disputes under Section 102(2) of the Municipal Systems Act, arguing they should not be required to pay rate increases calculated from what they contend remains an unlawfully implemented valuation roll.
Bouwe Wiersma, a ratepayer, welcomed the court’s confirmation that it stands by its findings of statutory non-compliance, despite granting leave to appeal.
He urged affected property owners to continue paying the undisputed portion of their rates account while formally disputing the increase until the litigation is resolved.