Property Rates and Services Increase

Unreasonable apportionment of costs, retired persons rates and services "breaks", wealth tax based on unrealised wealth (i.e. property).

I have raised this before. I am a retired person on a fixed income. I have lived in the same home for more than 20 years. There are many older people who have lived in their homes for many years and because of rising costs and "fixed" income, cannot afford to maintain their homes as well as they would like. As a result, CoCT valuations on this type of home is often way out because of the condition of the home!  

I have a number of comments:

1. Attaching the calculation or basis for rates and services to the supposed value of a property (the values of which are increased with inflation, but income of many retired persons remains static), is a wealth tax, and a wealth tax which is being applied to wealth that is not realised. The only way to realise this supposed wealth, is to sell the property!

2. Retired persons on a fixed income (or one that is linked to interest rates, which are currently falling) are massively disadvantaged by these ridiculous increases. Property values are increased with inflation, but income remains static. The inflated house price is an "unrealised" wealth, even if the value was realistic. So forcing people to sell their property because they cannot now afford inflated rates and services accounts.

3. With the adjusted rates calculator, my increase will be just over 11% - the current quoted inflation rate of the RSA is said to be between 3 - 6%, so an increase that is double the inflation rate is proposed for me by the CoCT!

4. The rates and services "assistance" to retired and indigent persons are "hard numbers", fixed at a value. For example, an income of R27 000, or a property value (which is determined by the CoCT and in my case, I doubt I could sell my property for the value the CoCT deems!) e.g. below R7 000 000. My income is slightly higher than what is stipulated to get assistance (before the proposed increase, I already spend nearly 25% of my income on rates and services), and my property is valued by CoCT at slightly more than the R7 000 000. I therefore get no "assistance". Surely these values and the related "assistance" should be on a sliding scale, like income tax brackets. So, a retired person with an income of say R45 000 and a property which the CoCT say is valued at R8 000 000, should get some proportional assistance, but less that a person with an income of R23 000 and a property valued at say R3 000 000.