A solution to the recent reclassification of private schools as businesses – landing them with rates bills 10 times higher than normal – has been found.
On Sunday, Johannesburg mayor Mpho Phalatse said she will hold a briefing on Monday morning to lay out “active steps to correct national Cogta rates and tariffs for affected educational institutions”.
This comes after the new 2022/2023 Johannesburg municipal rates policy came into effect and scrapped the old classification of private schools as public benefit organisations, effectively charging them as businesses.
The new rates classification sees the removal of the “education” category from its rates policy. This has resulted in government schools being classified as “public service properties” and rated at a tariff six times higher than what they were paying until the end of June, with no rebate relief afforded to them.
Private schools have since July 1 been charged about 10 times more, and though they may apply for a 25% rates rebate, the qualifying criteria are not clear. Many low- and medium-fee schools have been reliant on the rebates they were eligible for as non-profits to keep their fees relatively affordable.
New rates regime challenged
Solution to private schools rates crisis to be announced
'We've come up with the answer,' says Joburg mayor Mpho Phalatse
Image: Alaister Russell
A solution to the recent reclassification of private schools as businesses – landing them with rates bills 10 times higher than normal – has been found.
On Sunday, Johannesburg mayor Mpho Phalatse said she will hold a briefing on Monday morning to lay out “active steps to correct national Cogta rates and tariffs for affected educational institutions”.
This comes after the new 2022/2023 Johannesburg municipal rates policy came into effect and scrapped the old classification of private schools as public benefit organisations, effectively charging them as businesses.
The new rates classification sees the removal of the “education” category from its rates policy. This has resulted in government schools being classified as “public service properties” and rated at a tariff six times higher than what they were paying until the end of June, with no rebate relief afforded to them.
Private schools have since July 1 been charged about 10 times more, and though they may apply for a 25% rates rebate, the qualifying criteria are not clear. Many low- and medium-fee schools have been reliant on the rebates they were eligible for as non-profits to keep their fees relatively affordable.
Halted construction leaves pupils out in the cold
The National Alliance of Independent Schools Associations (Naisa) has been trying to renegotiate with the city, while civil rights group AfriForum and JSE-listed education group AdvTech sought an injunction against the metro in the high court.
The court has since ordered that no credit control measures may be taken against any education institution that fails to pay the hugely increased rates bill and the case was postponed to October.
“Since July 1 the City of Joburg has been dealing with queries, complaints and court cases about the section 8 (2) amendments enforced by national Cogta [the department of co-operative governance and traditional affairs]. Therefore, in the interests of residents and affected ratepayers, the executive mayor and her mayoral committee have been working non-stop to resolve the issue and believe the city has found a solution,” stated a media advisory issued by Phalatse’s office on Sunday. – TimesLIVE
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending
Related articles
Latest Videos