Sapoa rubbishes Cape's ‘miracle' justification for levy

The City of Cape Town's decision to raise funds through a cleaning levy linked to property value, rather than through property rates, was based on a flawed calculation and did not take into account that it will attract 15% VAT, whereas property rates do not attract VAT.

- Antoinette Slabbert

This is one of the arguments put forward by the South African Property Owners Association (Sapoa) in its heads of argument prepared for the showdown between the two parties set down in the Western Cape High Court in Cape Town for three days ending today.

Sapoa is challenging the citywide cleaning levy, as well as fixed charges on water and sanitation for being linked to property values, saying this does not comply with constitutional and legislative prescripts - and the city's own tariff policy and bylaws that do not provide for service charges to be based on property values.

It is asking the court to declare the levies and fixed charges unlawful and to suspend the order for two months to allow the city to adjust its budget to deal with the shortfall if it is no longer allowed to levy the charges.

City brings counter-application