City of Tshwane Metropolitan Municipality v Lombardy Development (Pty) Ltd and Others

The respondents owned vacant stands in the Lombardy Estate within the area of the former Kungwini Local Municipality, later incorporated into the City of Tshwane. Their properties had historically been categorised as 'residential' for rates purposes. In 2012, the City introduced a supplementary valuation roll that re‑categorised these properties as 'vacant land', attracting a significantly higher rates tariff, which was also retrospectively applied to July 2011. The respondents received drastically increased invoices without having been individually notified of the re‑categorisation or given an opportunity to object. After unsuccessful attempts to obtain explanations from the City, the respondents brought review proceedings challenging the validity of the supplementary valuation roll and subsequent valuation rolls.

The appeal was dismissed with costs, save that paragraphs 5 and 6 of the High Court’s order were set aside. The invalidity of the 2012 supplementary valuation roll and the affected portions of subsequent valuation rolls was confirmed.

The case affirms the strict procedural requirements municipalities must follow under the Municipal Property Rates Act when valuing and categorising properties. It underscores the principle of legality in municipal rating powers and protects ratepayers against undisclosed and retrospective rate increases. The judgment also clarifies that valuation rolls compiled in breach of section 49 are invalid and cannot lawfully found subsequent valuation decisions.