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KZN housing department to pay

25 March 2004

The rates and taxes were due on property in the Pietermaritzburg-Msunduzi municipality which is intended for low cost housing. The state had argued that this land was exempt from rates as it was 'being held in trust for the inhabitation of the area of jurisdiction'. The Appeal Court rejected this on the grounds that 'If state property is to be regarded as being held in trust within the meaning of section 3 (3)(a) of the Rating of State Property Act solely because the responsible functionary of state is obliged to utilise the property for the benefit of the public, very few state properties will fall outside the ambit of the section.'

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