REBATE: REQUEST TO APPROVE THE REDUCTION OF TARIFF THROUGH REBATE TO B&B AND ACCOMMOCATION PROPERTIES 

MCCI congratulates the STLM Council on its decision to reduce the property tax for the accommodation sector within the municipality. However, Resolution C20/11/2024 has created an unprecedented advantage for specific business and residential properties. This decision contravenes Section 3 (3) (a), which states that municipal property taxes must treat persons liable for rates “equitably and fair”. With the focus on the SMME sector, why has the council not also considered the rebate for the smaller businesses within STLM’s borders?  Sectors such as accountants, hairdressers and attorneys to name only a few of the businesses that are members of MCCI.  

Also important to keep in mind the Municipal Property Rates Act ,to Section 16 (1) (b). The act states that “A municipality may not levy rates in a manner that prejudice economic activities across its boundaries.” The Council’s decision to adopt the resolution prejudiced all businesses in STLM, other types of property owners and residential property owners. It is also unclear as to what the 50% tariff reduction covers. Is it less than 50% of the increased property tax value or the total property tax value? Please clarify this. 

Many residential property owners and businesses supported MCCI’s effort to mediate the substantial increase in property rates with STLM. However, as the Council has already passed the Resolution in November 2024 and a few of the accommodation businesses have already received their rebates for January 2025, a precedent has been established.  

Our members and the residential property owners have mandated us to address this issue. Members requested  the same rebate awarded to the accommodation sector be applied across the various categories. MCCI urges our members to apply for the same discount as the Council actions must not “prejudice economic activities across its boundaries”.  

MCCI has always been committed to the economic growth and stability of our town. We are working on strategies with STLM to attract manufacturing businesses into town and the property rates are a deterrent. It would be good if we could meet, as previously requested, to find a quick solution.