Exclusions, exemptions, reductions and rebates

1
Exclusions, exemptions, reductions and rebates

• A framework for discussion
• 11 June 2003

2
Towards a common understanding of terms

• Exclusion excluded from valuation and rating by
  means of legislation, municipality cannot levy
  rates on excluded properties
• Exemptionmunicipality may decide to value but to
  exempt from rates or may decide exempt from
  valuation and rating
• Reductionproperty is valued and rated, but rates
  are reduced
• Rebatea discount granted by the municipality
  

3
Key considerations

• All of the aforementioned result in (1) a
  reduction in total realizable municipal revenue,
  and (2) a distortion of the local revenue base
• Need to assess the application of the above
  against the objects of the Bill
• Need to be clear on impact of the application of
  the above on the IG fiscal dispensation

4
Key considerations...

• Need to be clear on who (what sphere of
  government) should decide on / exercise
  discretion over what, eg is it appropriate for
  national legislation to set / predetermine
  elements of local policy?
• Asked differently what belongs in a national
  framework.what belongs at local level?

5
Some suggestions

• Set framework by being clear on what will be
  excluded
• Set framework by being clear on what needs to be
  valued
• Set framework by being clear on what needs to be
  rated
• Leave optimal discretion about what to exempt,
  what to reduce and what to rebate to local
  decision makers