The High Court has confirmed its precedent judgment and has, for the second time, dismissed the City of Johannesburg’s attempt to charge business rates to residential property owners.

Partners, Chantelle Gladwin-Wood, Maike Gohl and Lauren Squier of HBGSchindlers Attorneys (acting for the Second Respondent in the matter) are pleased to announce the dismissal of an application for leave to appeal which was brought against a judgment of the High Court in Johannesburg upholding a decision by the Valuation Appeal Board regarding the categorisation of residential sectional title properties for rating purposes.

The categorisation of the residential properties as sectional title business would have resulted in substantially higher rates being charged to the residential property owners, 4 times in excess of the sectional title residential rate.

This judgment serves to confirm (for the second time) that the appropriate rate to be charged to the property owners was sectional title residential, and it reinforces the legal position that municipal valuations and categorisations must be consistent with valuation principles and the law. The judgments handed down have prevented the City of Johannesburg and the Municipal Valuer from categorising other residential properties as business in the manner attended in this matter.

HBGSchindlers Attorneys are pleased with the outcome of this matter which sets a legal precedent and is a triumph for not only the Second Respondent, but for all owners of residential sectional title property within the City of Johannesburg alike.