SALGA Backs KZN Public Works Push to Scrap Property Rates on Schools and Hijacked Buildings

The South African Local Government Association (SALGA) has given a favourable hearing to the Department of Public Works and Infrastructure’s longstanding call to be exempted from paying property rates on certain buildings under its care.

Under the leadership of MEC Martin Meyer, the department has approached SALGA to seek relief from property rates, particularly for hijacked buildings and schools.

Meyer announced last month that he would initiate engagements with relevant authorities to ensure schools were exempt from municipal rates, noting that some organisations and groups already benefitted from zero-rated status, while schools continue to pay.

Currently, religious and sporting properties were among those exempt from paying rates in the eThekwini Municipality. Meyer said that removing this financial burden would allow learners and teachers to focus on education.

At a meeting in Durban on Friday, Public Works presented SALGA with some key issues weighing heavily on its finances. Chief among these were the department’s annual property rates bill of R1.7 billion — a figure that has become untenable given that National Treasury provides only R900 million annually for this expense.

The department said the shortfall has worsened over the past decade, compounded by the obligation to pay rates on more than 1,480 hijacked buildings that remain illegally occupied.

“The fiscal reality makes it clear that we need to pivot our strategy to mitigate this unsustainable financial pressure,” Meyer said.

During discussions, concerns were also raised about some municipalities charging excessively high business property rates. It was further stated that certain municipalities were quick to disconnect essential services, including electricity, to public buildings — some housing critical government operations — without engaging in payment plan negotiations.

Regarding education, Meyer said his department currently carried R322 million in property rates bills for schools across the province.

He said exempting schools from rates would significantly reduce the department’s overall financial burden. The department also called for a fairer billing approach between rural and urban educational institutions.

While acknowledging that these objectives would take time to achieve, Meyer outlined several potential interventions to ease financial strain. These include ring-fencing proceeds from the sale of 85 state-owned buildings and exploring the write-off of rates debt against the market value of properties transferred to municipalities.

Another proposal involved protecting essential services from immediate power disconnections.

SALGA welcomed the concerns raised during the engagement.

“We are aligned with the challenges presented, and we recognise the need for continued collaboration with KZN Public Works and Infrastructure,” a SALGA representative said.

Both parties emphasised the importance of sustained engagement among all stakeholders to develop practical and sustainable solutions.

“The aim is clear: to establish a stronger footing that ensures improved service delivery for communities across this diverse and vibrant province,” Meyer said.

DAILY NEWS