Cape Town faces court challenge over property-value tariffs

CAPE TOWN — 10 June 2024

Cape Town will defend its new fixed municipal charges in the High Court this September amid claims that the property-value linked fees are unconstitutional.

Property owners and residents argue the city overreached with three new charges: a city-wide cleaning levy, fixed water charge, and fixed sanitation fee (SAPOA court filing). Unlike consumption-based billing, these apply regardless of service use and are calculated using property values.

The South African Property Owners Association (SAPOA) launched the legal challenge in July, claiming the tariffs violate Section 229 of the Constitution. The group argues municipalities may only charge property rates, service fees, or government-approved taxes (SAPOA statement).

“This is not just a fight for Cape Town” said a CTCRA spokesperson. “It’s about protecting all South Africans from unlawful taxation masked as service fees.”

The Cape Town Collective Ratepayers’ Association, representing 40 community groups, has joined the case. It disputes the city’s characterization of opponents, noting objections came from residents of all income levels (CTCRA statement).

Mayor Geordin Hill-Lewis maintains the levies are essential to avoid a R2 billion budget shortfall and fund pro-poor initiatives. The City stated the charges promote financial sustainability and infrastructure development (City affidavit).

The Western Cape High Court will hear the case on 18-19 September 2025, with potential implications for municipal funding nationwide.