Bulawayo City Council has unveiled a $122 million 2012 budget which would culminate in residential property owners being charged property tax depending on the size of their land.
The funds are earmarked to improve roads and to fund grass cutting and street lighting.
The property tax ranges from $2,64 to $43,37 per month. Ten percent of the property tax will be used to maintain roads.
Finance and development committee chairperson Nduna Dladla said the rates come into effect after the completion of a property evaluation.
“Following a successful revaluation of properties in the city, new rates of property tax come into effect in 2012. Property tax will be based on the size of the stand. This means it will vary from one property to another,” said Nduna.
“The lowest property tax for residential properties will be $2,64 per month while the highest will be $ 43,37 per month. The tax will improve road maintenance, grass cutting, street lighting, street cleaning, and pest control.”
Nduna said during the second consultative meetings in which 2 081 residents participated, there was a feeling that the revaluation of properties was pushing the property tax to unacceptable levels, bearing in mind economic hardships experienced by the residents.
“Revenue expenditure for administration amounts to $21,9 million and will be financed mainly from property taxes . . . Total expenditure under this service (recreation) amounts to $3 million,” said Nduna.
“This will be financed from income budgeted under this service and any deficit will be funded from property tax.”
The city council completed a mandatory property valuation of all infrastructure two months ago with the municipality indicating that the value of non-residential properties under its books amount to $1,2 billion and there are 132 815 residential properties in the city.
The value of residential properties, 24 295 in low-density and 108 520 in high-density was not given.
Valuation of properties is important in determining the fair price or value of a property such as a building, factory or other engineering structures of various types of land in a locality.