Private schools return to court over Johannesburg property rates and service cut-offs

Independent schools have returned to the Gauteng High Court, Johannesburg, alleging the City of Johannesburg continues to apply a higher ‘business and commercial’ property rates tariff and has threatened or carried out electricity disconnections.

What the schools say

According to IOL, independent schools told the court that in several cases electricity supplies were discontinued after schools could not pay what they say were higher rates charged by the city.

The applicants say the city is persisting in enforcing the higher tariff despite a court order last year that set aside the municipality’s 2023/24 property rates by-law and its policy for categorising educational institutions.

Background: last year’s ruling

The earlier judgment set aside the city’s removal of a property category that had applied to educational institutions and rejected the subsequent categorisation of privately owned properties used for education as business and commercial for municipal rates purposes. The city was also directed to phase in any application of the business and commercial tariff over a four-year period from the 2023/24 to the 2026/27 municipal financial years.

Who launched the challenge

The application was launched by various stakeholders, including Curro Holdings, the Independent Schools Association of South Africa and AfriForum. According to IOL, the Independent Schools Association of South Africa is a voluntary association of independent schools with over 244 member schools in Johannesburg, serving 64,952 learners.

Dispute over enforcement and interpretation

The applicants say the city has breached the prior order by continuing to apply the business and commercial tariff to independent schools and by threatening or effecting disconnection of electricity for non-payment of rates charged above the level prescribed by the court.

The city told the court it interprets the earlier order as applying only to the 2023/24 financial year and argued that the credit control actions complained of related to unpaid municipal services such as electricity, water and sanitation rather than property rates.

Court response and procedural matters

The applicants asked the court to keep the earlier order in place and to restrain the city from disrupting services to the schools, saying learners and schools would suffer if the city did not comply immediately.

The city argued the relief was moot because a 2025/26 rates policy was adopted in May last year and came into effect on 1 July last year. The court found the issue was not moot because the city is required to adopt a new rates policy for the 2026/27 financial year.

Engagement and children’s interests

The applicants also told the court that the city had not engaged meaningfully with independent schools to consider the impact of re-categorising private educational properties as business and commercial, and said the city had ignored the interests of children who attend independent schools and access to basic education.

Judge Thifhelimbilu Modaue commented that the city’s own account of its public participation process confirmed it had not engaged meaningfully with independent schools on the issues.

Interim order

The court ordered the city to refrain from enforcing the higher tariffs and from disconnecting electricity supplies to the affected schools. That order will remain in place pending the outcome of an appeal by the city against the original ruling.

According to IOL, the city was ordered to refrain from enforcing higher tariffs and from disconnecting electricity supply to the affected schools pending the appeal.

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