It seems that the outcry in the press was unfounded. One of our correspondents, Christiaan Jansen, provided us with this information on the 20th July 2011:

I went to have a look at the “MUNICIPAL PROPERTY RATES AMENDMENT BILL” as it seemed this might have a big effect on us going forward. The point of contention seems to be all about point 2(o):

( o) the substitution for the definition of “residential property”
of the following definition:
“‘residential property’ means property of which the
primary use or permitted use is for residential purposes,
excluding such property used to accommodate persons other
than the owner for gain;”;

The deputy minister for the department responsible (Cooperative Governance and Traditional Affairs) Yunus Carrim appeared on the Money Show on Talk Radio 702 last night to clarify the confusion caused by our objective friends in the media:

http://www.702.co.za/onair/heardonair.asp?action=presentersearch&presenterid=46
THE MONEY SHOW 18 July 2011 6:10 PM
Municipal property rates
Yunus Carrim has clarified that people who rent out second properties will not be charged commercial rates. Only businesses that are run from residences will be subject to commercial rates.
Guest: Yunus Carrim
Organisation: Cooperative Governance and Traditional Affairs
Position: Deputy Minister

The deputy minister also said that they would clarify the wording of this draught bill before it is sent to department – there would also still be a lot of consultation before this ever gets approved into law.

In the end this just goes to show that we should take note of what is reported in the media but always try and find out the whole story ourselves before making up our mind or taking action…