Rates Action Group v City of Cape Town (16/2005) [2005] ZASCA 111; [2007] 1 All SA 233 (SCA); 2006 (1) SA 496 (SCA); 68 SATC 1 (25 November 2005)

Rates Action Group v City of Cape Town (16/2005) [2005] ZASCA 111; [2007] 1 All SA 233 (SCA); 2006 (1) SA 496 (SCA); 68 SATC 1 (25 November 2005)

The Supreme Court of Appeal held that the Local Government: Municipal Systems Act 32 of 2000 does not preclude the levying of a rate as a charge for municipal services such as sewerage and refuse removal. The Act requires a tariff policy and by-laws for the levying of fees for municipal services, but does not prohibit the use of property value as a basis for such charges. The relevant provisions of the Local Government Transition Act 209 of 1993 were not impliedly repealed by the Systems Act and continued to operate until expressly repealed by subsequent legislation. The appellant's argument that all service charges must be based on actual consumption and determined by tariff was...

Citation
[2005] ZASCA 111
Parties
Appellant: Rates Action Group; Respondent: City of Cape Town
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
25 November 2005
Case Number
16/2005
Procedural Posture
Civil Appeal / Appeal From Cape High Court
Outcome
Appeal dismissed with costs, including costs occasioned by the employment of two counsel.
Judges
Howie, Streicher, Lewis, Jafta, Nkabinde
Legal Topics
Municipal Rates, Tariff Policy, Local Government Finance, Service Charges
Administrative Law Tax Law Municipal Rates Tariff Policy Local Government Finance Service Charges

Case Brief

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Parties

Rates Action Group

Appellant

City of Cape Town

Respondent

Procedural Posture

Civil Appeal / Appeal From Cape High Court

Legal Issues

  1. 1 Whether the City of Cape Town was lawfully entitled to levy sewerage and refuse removal charges based solely on the municipal value of property.
  2. 2 Whether the Local Government: Municipal Systems Act 32 of 2000 precludes the levying of a rate as a charge for municipal services.
  3. 3 Whether the relevant provisions of the Local Government Transition Act 209 of 1993 were impliedly repealed by the Systems Act.

Ratio Decidendi

The Supreme Court of Appeal held that the Local Government: Municipal Systems Act 32 of 2000 does not preclude the levying of a rate as a charge for municipal services such as sewerage and refuse removal. The Act requires a tariff policy and by-laws for the levying of fees for municipal services, but does not prohibit the use of property value as a basis for such charges. The relevant provisions of the Local Government Transition Act 209 of 1993 were not impliedly repealed by the Systems Act and continued to operate until expressly repealed by subsequent legislation. The appellant's argument that all service charges must be based on actual consumption and determined by tariff was...

Court Disposition

Appeal dismissed with costs, including costs occasioned by the employment of two counsel.

Orders

  • The appeal is dismissed with costs, including those occasioned by the employment of two counsel.