By Justina Chirwa – Attorney: Litigation & Commercial Department
Property owners’ obligations
It is every property owner’s obligation to ensure that payments are made towards their rates, taxes and utilities bill. Municipalities are allowed to raise charges on properties for rates and taxes, because of the services being provided by the municipalities. This is in terms of Section 229 of the Constitution of the Republic of South Africa. When rates are applicable, section 27 (2) of the Municipal Property Rates Act 6 of 2004 (as amended) states the following:
“(2) A person is liable for payment of a rate whether or not that person has received a written account in terms of subsection (1). If a person has not received a written account, that person must make the necessary inquiries from the municipality.”
The person responsible for paying the rates and taxes on the property, is not absolved from making payments, if an account has not been received. There is a requirement that the person responsible for the payment, of the rates and taxes on a property, must enquire from the municipality, if an account has not been received.
Prescription Act
In terms of the Prescription Act 68 of 1969, there are charges that prescribe or that cannot be claimed after specific periods of time, if a summons or court application, has not been served to sue for these charges. This is applicable if a debtor, has not provided an acknowledgment of the debt.
There is a three-year prescription period that is applicable to debts. This includes electricity, water and gas charges. If the debt is owed to the State, there is a thirty-year prescription period. This means that property rates inclusive of taxes, sewerage and charges for refuse can only be extinguished, after the thirty-year period.
Therefore, if there is a failure by the rates payer, to pay property rates and taxes, the municipality can only recover the debts within thirty years, from the date that the debt was due. If there is a failure by the debtor, to pay electricity, water and gas charges, then the municipality can only recover the debts, within three years.
Conclusion
The reciprocal duty is placed on the municipality and rates payer, to ensure that enquiries are escalated to the applicable municipality, by the rates payer and that these enquiries are resolved.
