eThekwini Municipality Property Rates Case

In 2010, the eThekwini Municipality adopted a rates policy contrary to the gazetted Amended Regulations in terms of which municipal rates were capped to a tariff “of 25% of the rate levied on residential property in respect of Public Benefit Organisation (PBO) properties”.

As these tariffs would have adversely affected ISASA PBO member schools, ISASA filed an application in the Durban High Court, upon the adoption of the eThekwini
Municipal rates policy, in which ISASA objected to the excess levies that were to be charged to PBOs, in contravention of the exemptions granted by the MPRA and Income Tax Act 58 of 1962.

On 3 July 2019, the High Court found in favour of ISASA and declared that the eThekwini Municipality could not levy a tariff in excess of 25% of the rate levied by it on residential properties. The matter was then appealed to the Supreme Court of Appeal, which on 2 November 2021 also found in favour of ISASA.

An explanatory memorandum from the ISASA legal and policy department is available below.

Ethekwini Municipality Case

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