Beyond The Bill

Cape Town's municipal billing system is under siege as property owners, ratepayer associations, and civil rights groups unite in a legal battle against the City's newly introduced tariffs. The charges, which include a city-wide cleaning levy and fixed water and sanitation fees based on property value, have ignited widespread controversy and multiple court challenges.

For many households, the financial impact has been severe. Rising property values have pushed numerous owners into higher billing categories, with municipal accounts climbing by as much as 30% in some cases. Homeowners argue that these fixed charges, being detached from actual consumption, unfairly penalise those who use less while placing an outsized burden on middle- and upper-value properties.

The City insists these tariffs are part of a "pro-poor" budget, with Mayor Geordin Hill-Lewis highlighting nearly R40-billion in infrastructure spending over the next three years. Investments include R16.5-billion in water and sanitation upgrades, R4.5-billion for MyCiTi expansion, and billions more for housing, parks, libraries, and social services. According to the City, wealthier households must cross-subsidise poorer ones to sustain service delivery and protect indigent households. Critics, however, argue that the new structure is unconstitutional, penalising property owners without tying charges to actual consumption.

THE LEGAL OPPOSITION

The City's new tariffs are facing stiff resistance, with commercial giants to civic associations all launching legal challenges that could determine the future of Cape Town's revenue plan.

SAPOA FILES AN URGENT APPLICATION IN THE HIGH COURT

The South African Property Owners Association is challenging the legality of the City's tariffs. Scheduled for hearing on September 18 and 19, 2025, SAPOA contends the charges are not only unlawful but also unfair to property owners. CEO Nilesh Gopal's argues that under the Constitution, municipalities may levy property rates, consumption-based charges, and surcharges but not fixed tariffs tied to property values. 

CTRCA HAS JOINED THE FIGHT AS AMICUS CURIAE

The Cape Town Collective Ratepayers' Association (CTRCA) , representing 56 neighbourhoods, has joined the case as amicus curiae ("friend of the court"), strengthening the voice of residential property owners. By joining the case, CTCRA aims to bolster public opposition to the tariffs and advocate for ratepayer interests. The court has raised no objections to their involvement, giving the coalition a stronger voice.

AFRIFORUM LAUNCHES ITS OWN COURT CHALLENGE

Adding further pressure, AfriForum argues that the City's entire budget rests on unlawful tariffs and has overstepped its authority by using property values to determine fees, surcharges, and levies outside the scope of the Municipal Property Rates Act.  AfriForum is seeking a declaration that the City's budget is invalid for the 2025/26 financial year, pending rectification.

NEW PLAYER ENTERS LEGAL TARIFF FIGHT

The SA1st Forum has joined the growing opposition to Cape Town's new municipal tariffs, arguing that the City's public participation process was "flawed and inadequate" and in breach of key legislation. The organisation says the sharp increases are unaffordable for ordinary residents and amount to an unfair burden on ratepayers.

GAUTENG SETS A PRECEDENT

Legal battles elsewhere in Gauteng have already set a precedent. In August 2025, the Pretoria High Court ruled in favour of AfriForum, striking down Tshwane's R194 monthly cleansing levy. The court found the charge to constitute illegal and unfair double taxation, particularly for residents who do not benefit from municipal refuse removal and rely on private service providers.

THE IMPACT ON HOMEOWNERS

For many homeowners, the effects are immediate:

• Higher Monthly Bills: Even when usage hasn't changed.
• Value-Based Penalties: Owners of higher-value homes pay more, regardless of consumption.
• Budget Pressure: Pensioners and fixed-income households may feel the squeeze most.

WHAT YOU CAN DO:

1. Check your municipal bill carefully for new line items.
2. Stay informed on legal proceedings and consider joining local associations like CTCRA.
3. Budget proactively, as any court-mandated refunds will only be processed if and when courts rule against the tariffs.

THE IMPACT ON LANDLORDS

For landlords, the tariffs threaten both finances and tenant relations:

• Rising Operating Costs: Increased municipal charges can reduce rental returns.
• Lease Clarity Matters: Ambiguous agreements risk disputes over who pays the new charges.
• Tenant Sensitivity: Even minor rent increases may affect retention in an affordability-strapped market.

STEPS YOU CAN TAKE:

1. Review and update leases to clearly allocate responsibility for municipal charges.
2. Maintain open communication with tenants to prevent conflicts.
3. Partner with professional rental agents to ensure leases are compliant and rentals remain competitive.

SEEFF'S PROFESSIONAL ADVANTAGE

At Seeff, we actively monitor legal and municipal changes to protect our clients' property investments. Our property specialists provide practical, results-driven support: drafting robust leases that fairly allocate costs, advising on rental pricing strategies to safeguard income, and helping maintain smooth landlord-tenant relationships to prevent disputes. We work with landlords who value professional guidance and want solutions that deliver real results.

THE BOTTOM LINE

The introduction of city-wide cleaning tariffs and fixed municipal charges signals a significant shift for Cape Town property owners. Although their legality is set to be tested in the courts, the immediate financial strain is already evident. For now, property owners remain liable for these fees, underscoring the importance of staying informed to protect their investments.