Judgment reserved in case of AfriForum and others against Johannesburg Metro regarding educational institutions’ property tax
14 February 2023
The case of AfriForum and others against the Johannesburg Metropolitan Municipality regarding the excessive increase in educational institutions’ property tax was heard virtually in the High Court in Johannesburg over the past two days. This follows two days in November 2022 during which the case was also heard, but which was not sufficient time to complete the hearing. The judge reserved judgment today.
This legal action follows after the metro council removed a property category that applied to educational institutions. Public institutions will henceforth be assessed in the category of public service property and private schools as public enterprises. The tax rates in these categories are dramatically higher, regardless of whether private institutions qualify to be recognised as non-profit organisations and are therefore eligible for relief.
“AfriForum takes a strong stance against this recategorisation and believes these increases also set a dangerous precedent. It is important for us to protect the interests of all taxpayers through legal action like this,” says Morné Mostert, manager for Local Government Affairs at AfriForum.
Not only is the sharp increase worrying, but also the procedural errors made by the metro council, for example that public consultation was not carried out on the adjustments.