Municipality may be missing out on rates on its rental property
TWENTY years into a 99-year lease for a prime piece of municipal property, Ndlambe Municipality is unable to say how much rates and taxes it should have been getting.
TotT was provided with the original lease agreement for the Kowie Swim and Play Centre in the Port Alfred small boat harbour, valid for 99 years from September 1, 1997.
A significant clause in the lease brought to TotT’s attention, is that in addition to the nominal rental, the lessee is responsible for payment of rates on taxes on the property, “assessed on the same basis as if the property was owned and registered in the name of a private person rather than in the name of a local authority”.
Municipal spokesman Cecil Mbolekwa said rates were being paid but could not say how much. He also could not say what the current value of the property was.
Read the full story in this week’s Talk of the Town.