Gerber and Others v Member of the Executive Council for Gauteng Provincial Government, Development Planning & Local Government and Another

The appellants were owners of agricultural land within the jurisdiction of the Eastern Gauteng Services Council. For the 1997/1998 and 1998/1999 rating years, the Council imposed so‑called 'land rates' on properties by way of flat amounts per erf within particular localities, without reference to the size or value of the land. The rates were published in two Provincial Gazette notices by the Council’s CEO and later in a third notice by the MEC for Local Government, Gauteng. The Council justified the flat rates on the basis that a valuation roll was still being compiled and that it calculated rates by dividing operating expenses by the number of erven in each area. The appellants challenged the legality of these rates, contending that they were imposed without lawful authority, were discriminatory and irrational, and did not comply with constitutional and statutory requirements governing property rates.

The appeal was upheld. The relevant portions of the Gazette notices imposing the land rates for the 1997/1998 and 1998/1999 rating years were set aside as unlawful.

This decision is a leading authority on municipal rating powers in South African law. It clarifies that property rates under section 229(1)(a) of the Constitution must be based on objective criteria such as valuation or measurement, and that flat‑rate charges unrelated to property value or size are unconstitutional and unlawful. The case reinforces principles of legality, rationality and equality in municipal fiscal decision‑making and draws a clear distinction between property rates and other levies.