On 30 September 2015 The Supreme Court of Appeal delivered a judgment in the case of Randburg Management District vs West Dunes Properties dealing with the legality of levies imposed under the Gauteng City Improvement Districts Act 12 of 1997 (the CID Act) which provides for the imposition of levies on rateable immovable properties situated within a city improvement district.
The decision by The Supreme Court of Appeal bought into question the legal status of City Improvement Districts (CIDs) in South Africa.
The ruling inspired stakeholders to call for a re-evaluation of the South African legislative and regulatory context for Legislated Management Districts.
The Johannesburg CID Forum, in conjunction with SAPOA and National Treasury, requested an assessment and guidance on CID legislative issues (the GCID Act) and possibly draft appropriate enabling legislation.
Currently, all managed areas in Gauteng operate as voluntary initiatives.
Voluntary establishment has no standing or legislative backing and thus is reliant on the goodwill and consistency of its constituent property owners to remain viable. Thus, it has serious risks to sustainability.
COJ took the decision in June 2016 that Management Districts should be legislated under Section 22 of the Municipal Property Rates Act, 2004 (Special Rating Areas) and are therefore establishing a new Special Rating Area By-Law and Special Rating Area Policy.
The draft policies are now open for public comment until 3 July 2017.
Contact C. van der Merwe email@example.com
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