People who are currently using their homes to conduct a business, whether operating a guesthouse, providing student accommodation or using it as office space, should take note of a recent judgment by the Supreme Court of Appeal . In terms of the judgment municipalities are allowed to impose a penalty rate on the property if its use is in contravention of its zoning provisions.
Engelbrecht’s firm took the matter to the Johannesburg High Court, which found that the council did not adhere to the act or its own policies. The council took the decision on appeal before the SCA. The outcome The majority judgment in the appeal court upheld the city’s appeal, arguing that municipalities are entitled to levy the penalty rates based on the Municipal Structures Act. This act is the umbrella or empowering act under which the Rates Act falls.
Wondering same applies to all taverns, tuck shops, spazas, backyard mechanics in townships across Mzanzi.
In CityofJoburgZA there is a 600% rates penalty for unlawful use. Plus your water & electricity can be backdated for 3 years of business charges