Harare implements new rates in line with property valuation

THE City of Harare says it has completed compiling the general valuation roll and implementation of new rates resulting from the valuation of properties in the city began on January 1, 2024.

Suburban Reporter

In a notice to ratepayers and stakeholders, town clerk Engineer Hosiah Chisango said all owners of non-residential properties, flats and cluster houses within the environs of Harare had been informed about the current values for rating purposes.

He said the process was done in line with President Mnangagwa’s call for action which is also a fulfillment of the Urban Councils Act Chapter 29:15 Section 262. In launching the local authorities blue-print for service delivery last year, President noted lack of efficiency in revenue collection as one of the major weaknesses of local authorities in Zimbabwe and urged all councils to value their properties by June 30, 2024 as valuation was key to revenue collection. He also called on councils to act on the directives outlined in the blue print and restore services.

“Due to a number of factors, the box of revenue collection is lower than it is supposed to be.  This seriously compromises the ability of local authorities to deliver service. The systems for revenue billing and collection are very weak.  A number of local authorities only bill and collect from residents for only a portion of services rendered.

There are instances where some local authorities only collect revenue from about sixty percent of water which is generated,” said President Mnangagwa.

He said Government was directing that: –

All Local Authorities, as provided for in the law should value their properties by 30th June, 2024.

All budgets for 2025/26 should be based on   such valuations.

Local Authorities can use Devolution funds to pay for such valuations subject to approval by the Ministry of Local Government and Public Works.

The President said the valuation of land will enable Local Authorities to:

• have a balance sheet which reflects true value which will make it easier for local authorities to raise money from financial institutions;
• Sell land as well as levy rates based on ruling market prices.

In his notice, Eng Chisango explained how council came up with rating zones for all the properties in the city.

“General residential properties have been assessed in terms of Section 252 of the Urban Councils Act which requires that rating zones shall be demarcated and each rating zone shall contain residential properties of approximately the same size and attributes.

“It is also to be noted that each zone should have properties adjacent to each other. In assessing residential properties, the Act only takes into consideration the minimum stand size of each zone which is regarded as the rating unit. The property tax is assessed according to the rating units each property is assigned,” said Eng Chisango.

He said the Urban Councils Act does not consider any improvements or buildings on the property and urged property owners who have inquiries in regard to the implementation of the new general valuation roll to be free to consult the city valuer and estates manager whose offices are located on First Floor Rowan Martin Building during working hours.

Last year, the City of Harare invited owners and occupiers of properties to inspect the roll at Rowan Martin Building and lodge objections if they have any.

Harare started the property valuation roll, to determine the new rates that residential and non-residential properties are supposed to pay per the new valuation of the properties in the capital city, in 2022.

The valuation took into account the subdivisions that have taken place on some properties in the city and the conversion of certain residential properties for commercial and other business use.

Harare has also seen the emergence of several new cluster houses, garden flats and high rise flats. The rates for these new developments will have to be determined through a property valuation roll.

The objections were supposed to deal with the following:

• The valuation of any non-residential property owned or occupied by them against any apportionment of such valuation
• The assessment of any residential property owned or occupied by them and in particular against:
• the number of rating units assigned to the property
• the rating zone within which the property has been placed
• In respect of any error, omission or incorrect description in relation to any property whether owned or occupied by them or not

The new roll is expected to see the city charge rates according to stand sizes and land use and the valuation exercise was prompted by the increase in the number of completed cluster houses and new ones currently under development across the capital city.

Harare hired two real estate companies to undertake the property valuation roll. According to law, council is expected to carry out a property valuation exercise after every 10 years.

But Harare had been asking for five-year extension periods for the past 10 years hence the last valuation was carried out 20 years ago.

A valuation roll is a list/register of properties situated within the boundaries of a given local authority compiled for rating purposes.

A valuation roll contains the following information among others:

• The name of the registered owner of the property
• The description of property (both stand number and the street address)
• The land area or the extent of the land
• The valuation of the property split between the value of land and improvements.

A valuation roll is used to determine how council charges rates, with properties in well-established and sought-after neighbourhoods being valued higher than those in less affluent or sought-after areas, due to factors such as location, service provision and crime rates.

Further, the General Valuation Roll will capture newly erected properties, improvements and subdivisions of properties that took place in Harare over the past decade to ascertain the correct market value.