KZN Public Works MEC Martin Meyer advocates for the exemption of public schools from property taxes, arguing that education should be treated as a public good.
Image: Facebook/ KwaZulu-Natal Department of Public Works and Infrastructure
In a bid to exempt public schools from paying property rates, KwaZulu-Natal Public Works and Infrastructure MEC Martin Meyer is set to meet with the Cooperative Governance and Traditional Affairs Department (CoGTA) and the South African Local Government Association (SALGA) to discuss the matter.
A few weeks ago, Meyer presented his proposal to SALGA and is now eager to advance the issue with CoGTA.
During a meeting with residents in Phoenix, north of Durban, on Tuesday evening, Meyer reiterated his commitment to freeing schools from the burden of property taxes. He argued that billing public schools at commercial rates is inappropriate, especially since education is a public good.
Meyer also announced that his department would inform communities about its activities and listen to their concerns. The engagement in Phoenix marks the first of several planned meetings.
He informed the community that if schools were exempted from paying property rates, his department could save around R300 million. Initially, the campaign aimed to convert commercial rates to residential ones; however, Meyer is now advocating for a complete exemption.
“We are happy to report that we have made good progress in this, and we have already met SALGA, which supported our call. In a few days to come, we will meet CoGTA and SALGA to finalise the issue, so we are hoping that in a month or two we will reach an agreement,” said Meyer.
There has been significant public outcry regarding the government's decision to permit municipalities to charge public schools commercial rates, particularly for those designated as no-fee schools due to their poor status.
However, Professor Sivanarain Reddy, a local government expert from the University of KwaZulu-Natal, cautioned that while exempting schools from property rates is an ideal solution, it could financially cripple municipalities that rely heavily on property rates for revenue.
Reddy stated that he would support the zero-rating of poor schools from indigent communities, but this must be cross-subsidised by the National Treasury. Local governments require these funds to continue meeting their constitutional obligations to provide services to the public.
“70% of the municipalities' revenue collection comes from property taxes, so exempting schools from paying for those taxes would lead to the dysfunctionality of many municipalities. The best solution would be for the national government to fund that decision, like it did when declaring poor schools no-fee-paying,” said Reddy.