 The South African Municipal Valuation Standards for Property RatingRoshinee Naidoo AfRES from African Real Estate Society (AfRES) Abstract: Purpose: The Local Government: Municipal Property Rates Act No 6 of 2004 (MPRA) heralded a new era for property rating for South Africa. There are no existing localised Standards for Property Rating in South Africa. The purpose of the project was therefore to develop a set of municipal valuation standards which are appropriate to the South African context. In this space there are varying performance by appointed Municipal Valuers and recurring issues relating to the inconsistent delivery of the property register/valuation roll. Together with the lack of expertise in the Municipalities due to the high turnover of staff and different interpretations of legislative requirements, the aim was to therefore customise the South African Municipal Valuation Standards for Property Rating.Design/Methodology: The MPRA is the primary reference point. This legislative framework has supported the development of these standards. It provides the specific legislative requirements in the valuation of property and the compilation and maintenance of valuation rolls for the levying of property rates. It also provides a legislative platform for compliance and assigns responsibilities to the property valuation profession (municipal valuers) and the municipalities. The structure and format of the standard have included the applicable MPRA sections that relate to the municipal valuer function, responsibilities, and obligations, and includes professional valuation practice notes with the applicable corresponding standard. The Practice Note: Templates and Annexures in the standard is intended as supporting best practice in the interpretation and understanding of a particular standard.Findings: Due to the evolving nature of mass valuations and technological advancements in this field. The Standard has a bias towards data and management of data which forms the basis of modern mass valuation principles and the application of computer assisted mass appraisal techniques. The valuation profession must have mass appraisal training if the municipalities, are to benefit from this competency.Practical Implications: The Standards will therefore promote standardisation, efficiency, uniformity and consistency through rules and benchmarks in the preparation and maintenance of valuation rolls (municipal rating), to improve quality and standards for equitable municipal rating. The document also includes setting limits, rules and benchmarks for monitoring and applying the standard and provides for practice notes, guidelines, and technical guidance to support implementation, interpretation and understanding of the standard. Today, we have the customised version known as the STANDARD: MUNICIPAL VALUATIONS FOR PROPERTY RATING (sMVPR), version 8.3 after being reviewed by the International Valuation Standards Council (IVSC). This version with associated appendices has been adopted by SACPVP for the implementation of the Local Government Municipal Property Rates Act and is driven by International best practice which was adapted for use in South Africa. Similarly, a Monitoring Framework has now been developed, the focus is on the Professional Performance and Conduct within the Municipal valuation and rating space. The Investigations and Ethics Committee of SACPVP will monitor any transgressions by the Municipal Valuers. Keywords: Mass Appraisal; Municipal Rating; Municipal Valuations for Property Rating; SACPVP (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:afr:wpaper:2021-027 Access Statistics for this paper More papers in AfRES from African Real Estate Society (AfRES) Contact information at EDIRC. |
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