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There is little comfort for the owners of smallholdings in Tshwane whose property taxes have quadrupled after being reclassified as residential by the metro council — unless they can prove that they are bona fide farmers.
So says Ben Espach, director of valuations at Rates Watch.
Espach was responding to the problem raised by Jacques van der Merwe, the owner of a smallholding in the Kameelfontein Estate east of Pretoria. His monthly property tax bill increased to R2 440 in December last year after his property was placed in a different category on the valuation roll.
The previous month it was still R648.12.
Van der Merwe says he has a few beehives on the land, a vegetable garden, and part of the property is used for grazing. However, his family members also have full-time jobs in the city.
He says he is not the only resident of Kameelfontein whose property was unexpectedly placed in another category. “There are at least eight of us owners standing together, but we cannot afford to take the council to court.”
He believes that the only thing he can do now is expand his farming activities so that he qualifies for the agricultural category, which is taxed at a quarter of the rate of residential property.
To make matters worse, the valuation of his property on the new valuation roll that came into effect on 1 July increased by R300,000, which further raised his bill. “I checked the valuation roll and lodged an objection in May 2025 against the categorisation of my property,” he says.
Until that objection is finalised, the old Transvaal law applies and he has to dig deep into his pocket. “The law is very clear that the landowner must continue paying property tax based on the current valuation until his objection is settled. If the objection succeeds, his account will be credited accordingly from the date that the relevant valuation roll came into effect,” says Espach.
What frustrates Van der Merwe is that Kameelfontein only receives water from the Tshwane metro council and no other services. Eskom is the electricity provider in the area, rubbish removal is done privately, and they use septic tanks for sewage.
He now pays what he can each month, but what the council expects is simply too much, he says.
Owners must prove they farm on the land
Espach says the council may determine property tax based on the primary use of the property, which does not necessarily correspond with its zoning. The question is therefore whether the property is used mainly for farming, or mainly for residential living.
Smallholdings are often a lifestyle choice rather than productive farming units. In such a case, the council is completely justified in charging the owner residential property rates, he says.
According to Espach, there are various definitions used to determine whether farming is the primary activity on a property. If an owner earns their main income from farming, they should succeed in having the property categorised as agricultural for property tax purposes. “He must be able to show that he relies on the land for his livelihood.”
Espach warns that several municipalities require a certificate from the South African Revenue Service (SARS) as proof that an owner is a bona fide farmer, “but SARS does not issue such certificates”.
What an owner can do, however, is classify his source of income as farming on his tax return.
Espach says that if a property is reclassified, the metro council is supposed to notify the owner in terms of section 49 of the law so that he has an opportunity to lodge an objection.
“If he did not receive the notice, it does not make the reclassification illegal. He can still submit an enquiry, but in the meantime he must pay his bill according to the new classification until it is resolved.”
Click here to read the article by Antoinette Slabbert on Maroela Media.