PPK Town Council set to issues final warning on outstanding rates

As the end of the month approaches, the Pigg’s Peak Town Council is sounding the alarm for ratepayers with overdue accounts. According to Town Treasurer Clement Dlamini, the Council will issue Final Demand Notices on August 31, 2025 to all ratepayers who have failed to settle their outstanding rates.
“This is the last opportunity for property owners to bring their accounts up to date before serious legal steps are taken,” Dlamini stressed. “We urge everyone to act now and avoid the heavy financial and legal consequences that follow non-payment.”
Penalties and legal action
Under the Rating Act of 1995, overdue accounts attract:
Interest penalties – A 15 per cent interest charge is applied after June 30 each year on accounts in arrears.
Final demand notice – Issued one month after rates become due, giving the defaulter 14 days to pay. This year’s notices will be sent out on August 31, 2025.
Ongoing interest – In addition to the annual penalty, arrears accumulate 1.5 per cent interest per month, plus a 15 per cent collection cost penalty.
Failure to respond to the Final Demand can lead to court action, with the Council prepared to litigate to recover the debt.
Impact on services
Dlamini warned that ratepayers who fail to settle their accounts may see a direct effect on municipal services.
Service suspension – Services such as refuse collection and sanitation may be suspended or limited.
Maintenance delays – Properties in arrears may not be prioritised for upgrades or repairs.
Service quality decline – Widespread non-payment erodes municipal capacity, leading to poor infrastructure and unreliable services.
Credit impact – Persistent default can harm a property owner’s credit record, affecting future loan or mortgage applications.
Long-term risks – Property repossession and auction
Non-payment of rates over an extended period can escalate to property repossession and auction. The process, as outlined by the Rating Act, is as follows:
1. Certified statements and court judgment – The local authority serves certified statements to the defaulter. The court clerk records a judgment in favour of the Council.
2. Movable asset auction – If the defaulter has movable assets, these are auctioned to recover the debt. If none are available, the property itself becomes subject to sale.
3. Public gazette and newspaper notice – After the financial year, if rates remain unpaid for two months, the property details are published in the Gazette and a local newspaper. The notice gives the owner two months to pay.
4. Auction notice – If payment is still not made, the owner is notified 30 days before the public auction of the property.
“This is a last resort,” Mr. Dlamini said, “but the law is clear – persistent non-payment can and will lead to losing your property.”
The takeaway
The message from Pigg’s Peak Town Council is clear: settle your rates now to avoid interest piling up, service interruptions and potential property loss. With the August 31, 2025 deadline looming, property owners are urged to make payment arrangements immediately.
For payment queries or to settle your account, contact the Pigg’s Peak Town Council’s Rates Department before it’s too late.