Relief as Joburg to increase schools' rates by 5%, not business classification rates

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Hundreds of schools across Johannesburg can breathe easy again after being hit with hefty rates bills for July – thanks to the City of Johannesburg’s offer to recalculate their bills to a standard 5% across the board.

Executive mayor of Joburg Mpho Phalatse announces the city's intention to implement a 5% increase on schools's rates bills after a change in law saw them being reclassified as businesses and hit with charges hiked to up to 10 times as much as their old rates.

The city is introducing a temporary one-year solution in the form of a 5% increase for all schools while they renegotiate the change in law with the department of cooperative governance and traditional affairs to align the amendments with rates increases that are both fair and “will not unduly penalise ratepayers or place the city on the wrong side of the law or anuditor-general”.

Phalatse said while she and her team were compelled to comply with the amended legislation, they would ensure Joburg remains a caring and business-friendly city, and were committed to offering a solution “that creates a win-win for all in the short term while we address a long-term strategy”.

 

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