No tax on heroes

THE City of Windhoek has agreed to exempt Government from paying assessment rates on Heroes’ Acre on the outskirts of the capital.

At its monthly meeting on Tuesday night, Council agreed to “donate” the amount payable for the rates to Government to overcome a legal hurdle that makes the property subject to rates. A clause will now be inserted into the Deed of Donation, which is still to be entered into between the two parties, that the City donate the amount equal to the assessment rates to Government.Although no money will change hands, it will be deemed that the rates that should have been levied be offset against the amount donated.However, the City of Windhoek will have the right to terminate this arrangement at any time.Before the resolution was agreed on, Congress of Democrats’ Councillor Herbert Schulz wanted to know exactly what the assessment rates would be on the property so that the value of the donation could be determined.He said he had queried this with the office of the CEO last week, but had not received an answer.Schultz was supported by the Republican Party’s Nico Smit.Smit said that while he was not opposed to the arrangement, it was important to keep a record of the value of the donation.”We keep donating to central Government, but central Government is not donating anything to us.It is a little unfair,” he maintained, referring to repeated complaints by the City that, unlike smaller authorities, it did not receive a subsidy from Government.Swapo Councillors urged that the resolution be passed, saying the value of the donation could be provided later.The land on which Heroes’ Acre, near Luiperdsvallei, was built was donated to Government by the Windhoek Municipality in 2001.At the time, the Council resolution on the donation did not address the issue of levying rates.However, the previous CEO and a municipal legal advisor noted at the time that it would be inappropriate to donate the ground in the national interest and to still levy rates on it.In terms of the law, the owner of all rateable property in a local authority area is required to pay rates determined on its value according to the municipal valuation roll.Because the monument and other structures erected at Heroes’ Acre are not dwellings and are used for public purposes, they are not deemed rateable.However, because improvements have been made to the land, it is subject to rates.The Local Authorities Act of 1992 only allows exemption from assessment rates for churches, missions, hospitals, schools and charitable organisations on application.In terms of these criteria, Heroes’ Acre does not qualify.The City also agreed to exempt 267 properties from paying assessment rates during the 2004-05 financial year.Most of these are churches, schools and old-age homes.A clause will now be inserted into the Deed of Donation, which is still to be entered into between the two parties, that the City donate the amount equal to the assessment rates to Government.Although no money will change hands, it will be deemed that the rates that should have been levied be offset against the amount donated.However, the City of Windhoek will have the right to terminate this arrangement at any time.Before the resolution was agreed on, Congress of Democrats’ Councillor Herbert Schulz wanted to know exactly what the assessment rates would be on the property so that the value of the donation could be determined.He said he had queried this with the office of the CEO last week, but had not received an answer.Schultz was supported by the Republican Party’s Nico Smit.Smit said that while he was not opposed to the arrangement, it was important to keep a record of the value of the donation.”We keep donating to central Government, but central Government is not donating anything to us.It is a little unfair,” he maintained, referring to repeated complaints by the City that, unlike smaller authorities, it did not receive a subsidy from Government.Swapo Councillors urged that the resolution be passed, saying the value of the donation could be provided later.The land on which Heroes’ Acre, near Luiperdsvallei, was built was donated to Government by the Windhoek Municipality in 2001.At the time, the Council resolution on the donation did not address the issue of levying rates.However, the previous CEO and a municipal legal advisor noted at the time that it would be inappropriate to donate the ground in the national interest and to still levy rates on it.In terms of the law, the owner of all rateable property in a local authority area is required to pay rates determined on its value according to the municipal valuation roll.Because the monument and other structures erected at Heroes’ Acre are not dwellings and are used for public purposes, they are not deemed rateable.However, because improvements have been made to the land, it is subject to rates.The Local Authorities Act of 1992 only allows exemption from assessment rates for churches, missions, hospitals, schools and charitable organisations on application.In terms of these criteria, Heroes’ Acre does not qualify.The City also agreed to exempt 267 properties from paying assessment rates during the 2004-05 financial year.Most of these are churches, schools and old-age homes.