The Independent Institute of Education (IIE) has lashed out at the City of Johannesburg Metropolitan Municipality for implementing unfair tariff policies and allegedly billing properties under its control which should be exempt from high tariffs, as the buildings are used for education purposes.
IIE group company secretary Chantelle Crouse says the city has persisted with “bullishly” unlawful rates policies. The entity has applied to the court to compel the city to exempt its properties from high rates.
Crouse said in an affidavit filed at the Johannesburg high court on April 8 that the city has failed to observe its own bylaw by not distinguishing properties used as school and tertiary institutions from business properties when collecting rates.
“Properties used for the provision of education constitute a distinct land use which is distinguishable from business properties and commercial properties. It is distinguished in the city’s own land use scheme,” reads the affidavit.
She contends that properties under the IIE are subjected to higher tariffs, which contravenes the constitution.
Crouse states that the city is also in contravention of a submission by the department of cooperative governance and traditional affairs (Cogta) to classify the entity’s buildings in the category of public benefit organisations.
In the past, the city has argued that education is a national and provincial competence and not the purview of local government. This view is misguided.
— IIE affidavit filed at Johannesburg high court
“IIE submits that Cogta sought to impose a relatively low ratio on education properties recognising the important function of all education providers, regardless where they are privately owned, or state owned or registered public benefit organisations,” reads the affidavit.
She said the institution has not accepted the argument brought by the city that rates are the competency of national government.
“In the past, the city has argued that education is a national and provincial competence and not the purview of local government. This view is misguided. While education is not a municipal competence, this does not mean that the city has no constitutional duties in respect of education,” reads the affidavit.
Crouse added that the city should prioritise their building classification as a constitutional right.
“The power of a municipality to impose rates on property is limited. In this regard, a municipality may not levy rates in a way that materially and unreasonably prejudices national economic policies and activities across municipal boundaries or the national mobility,” reads the affidavit.
She argued the municipality has the obligation to cater for the needs of the education sector in the city.
“The city has persisted with its unconstitutional and unlawful categorisation of the IIE’s properties. It has exceeded the powers afforded to it under the rates act and has disregarded the role which the properties, used for education, play in the social and economic development of the community,” reads the affidavit.
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