Sectional title corner – Can my complex back-date the CSOS Levy?
Based on HomeTimes’ articles, it has been mentioned that the Community Schemes Ombud Service levies will be raised on 1 January 2017. My question is, when is the effective date? 1 October 2016 or 1 January 2017. The reason for my question is my mother’s complex has issued a notice saying that this levy is backdated and payable from 1 October 2016. – Anthony
Hi Anthony, according to the CSOS Act, the Community Schemes Ombud Service Regulations: Levies and Fees, 2016, will come into operation 90 (ninety) days from date of publication in the Government Gazette.
The date of publication was 7 October, 2016, so the levies are only payable from 7 January 2017, but all schemes are starting to raise it on 1 January 2017.
- Every community scheme must, with effect from the commencement date of this Act, in each calendar year and at such times as may be prescribed—
(a) pay to the Service a levy in an amount calculated as prescribed, subject to such discounts or waivers as may be prescribed; and
The normal regulations then say:
Levies and amounts payable
11(1) Every community scheme must pay the levy referred to in the Community Schemes Ombud Service Regulation: Levies and Fees on a quarterly basis.
(2) The Minister may, by notice in the Gazette, set and amend –
(a) An application levy factor in the form of a decimal fraction for each of various stated categories of scheme, with definitions of each category;
(b) A maximum amount of the levy for a community scheme in each category; and
(c) The rate of discount or waivers of levies, with details of the qualifications for such discount or waivers.
(3) The levy is calculated to any applicable maximum amount, discount or waiver referred to in sub-regulation (2), according to the following formula:
(a) The lesser of R40.00 or 2% of the amount by which the monthly levy charged by the Scheme exceeds R500.00
The Levies and Fees regulations state:
Levies payable by schemes to the Service and the interval such levies are payable in terms of section 29 (1) (b) of the Act
(1) The Schemes must collect as follows the prescribed monthly levy from every unit within a community schemes and pay to the Service on quarterly basis: –
The following table gives illustrative values of the prescribed monthly levy payable:
|Monthly levy charged by the community
|Monthly CSOS levy payable|
|Zero to R500.00||R0.00|
|R2 500.00 and above||R40.00|
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Who is Karien Coetzee
Karien Coetzee is the national property management consultant at property management company, Trafalgar. She holds qualifications in sectional title schemes management and homeowners association management.