Draft Bill on development charges up for comment

NATIONAL Treasury has published for comment a Draft Bill which will provide uniform regulation of charges for new land development projects.

The development charges are a once-off fee levied by a municipality on a land owner as a condition for approving land development applications.

They are imposed to cover costs incurred by the municipality when installing new or upgrading an existing  infrastructure that is required to service the proposed development.

These services include provision of water, sewerage, electricity, municipal roads, storm water drainage, gas and solid waste collection and removal.

‘Development charges ensure that infrastructure required to service new developments is paid for by direct beneficiaries, so that existing residents do not continue to subsidise new developments.

‘This promotes the principle of aligning costs with benefits, and inter-generational equity (i.e. the burden of payment for infrastructure) is shifted from the taxpayers to land owners and new users of the infrastructure, who finance this over time through private borrowing,’ Treasury said in a media statement.

‘They enable municipalities to provide infrastructure in a timely and sufficient manner, thereby supporting economic development.’

The Bill makes provision for the subsidisation or exemption of certain categories of land owners and land developments from payment.

‘However, where a municipality decides to grant an exemption from the payment of development charges, it must identify an alternative source of revenue to fund the associated infrastructure,’ Treasury said.

The public has been given until 31 March to submit comments, which can be emailed to Development.Charges@treasury.gov.za

HAVE YOUR SAY

Like our Facebook page and follow us on Twitter.

For news straight to your phone invite us:

WhatsApp – 072 069 4169

Instagram – zululand_observer