Sectional title corner – How to calculate the CSOS levy
Good day, please confirm that in order to correctly calculate the CSOS levy, one does the following:
Take monthly levy of flat and add the monthly MRRP levy and ignore the levy for the garage and maids room and storeroom and the contribution for the exclusive use parking bay. From that figure of the two levies, one must deduct R500 and multiply by 2% with a maximum of R40. Thank you – H Berman
Good day, as per the new Community Scheme Ombud Service (CSOS) Act, 2011 (Act no. 9 of 2011) the CSOS Levy is calculated on the “monthly levy charged by the community schemes”.
This term “monthly levy” is very wide as the amended Sectional Titles Schemes Management Regulations only refers to “Administrative and Reserve Funds” on the one hand and “Contributions and Charges” on the other. “Monthly levy” could be seen as the administrative fund which must be used for the operational expenses of the scheme, this would then include all levies charged monthly to cover the expenses of the scheme, e.g. monthly levy, parking levy, security levy, domestic effluent levy, storeroom levy, etc. and not only amounts linked to the words “monthly levy”. Currently this is still a grey area in the industry and more clarification would be required from CSOS on this.
The calculation should then be straight forward: The (“monthly levy” LESS R500) multiplied by 2%, to a maximum of R40.
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Answered by Andries Erasmus at Belmont Property Management