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Comment on Municipal Fiscal Powers and Functions Bill Extended

March 18, 2020

National Treasury

The deadline for comment on the Draft Municipal Fiscal Powers and Functions Amendment Bill has been extended.

National treasury published the extension notice in Government Gazette 43099.

The draft bill, designed to regulate the power of municipalities to levy development charges, was published for comment in January 2020.

The draft bill aims to amend the Municipal Fiscal Powers and Functions Act of 2007, so as to:


• insert certain definitions;
• regulate the power of municipalities to levy development charges;
• set out the permissible uses of income from development charges;
• provide for the basis of calculation of development charges;
• provide for municipal development charges policies, community participation and by-laws;
• provide for engineering services agreements;
• provide for the installation of external engineering services by landowners instead of payment of development charges;
• provide for the consequences of non-provision of infrastructure by a municipality;
• regulate reductions to the obligation to pay development charges through subsidies;
• provide for matters relating to the budgeting of and accounting for development charges;
• establish an entitlement on the part of municipalities to withhold other approvals or clearances due to non-payment of development charges;
• provide for dispute resolution, delegations and financial misconduct;
• provide for transitional provisions relating to development charges;
• empower the Minister to make regulations for the effective implementation of matters relating to development charges;
• amend the Spatial Planning and Land Use Management Act, 2013, in a Schedule; and
• provide for matters connected therewith.

According to the draft bill’s memorandum, it “provides for a uniform, consistent, transparent and equitable basis on which municipalities can calculate and levy development charges on land owners”.

“The Bill requires that development charges are paid by both the public and private sectors, in order to ensure that a substantial portion of municipal bulk infrastructure investment can be financed on a ‘user pays’ principle, with the needs of poor households directly and transparently supported through public subsidies, including intergovernmental transfers.”

Comment is now invited until 30 April 2020.