Local Government (Rating) Act 2002

1: Title
This Act is the Local Government (Rating) Act 2002.
1: Preliminary and key provisions
1: Preliminary provisions
2: Commencement
1: Section 137(1) section 122ZAA Schedule 5
2: The following provisions come into force on the day after the date on which this Act receives the Royal assent, but only for the purpose of rating in a financial year that begins on or after 1 July 2003:
a: section 11
b: section 137(1)
i: Schedule 4
ii: items relating to the Rating Valuations Regulations 1998 Schedule 5
3: The following provisions come into force on 30 April 2003:
a: section 11
b: sections 27 to 36
4: The rest of this Act comes into force on 1 July 2003.
3: Purpose
The purpose of this Act is to—
a: promote the purpose of local government set out in the Local Government Act 2002
i: providing local authorities with flexible powers to set, assess, and collect rates to fund local government activities:
ii: ensuring that rates are set in accordance with decisions that are made in a transparent and consultative manner:
iii: providing for processes and information to enable ratepayers to identify and understand their liability for rates; and
b: facilitate the administration of rates in a manner that supports the principles set out in the Preamble to Te Ture Whenua Maori Act 1993 Section 3 replaced 13 April 2021 section 4 Local Government (Rating of Whenua Māori) Amendment Act 2021
4: Outline
1: This Act replaces the Rating Powers Act 1988.
2: Part 1 contains—
a: preliminary provisions that provide for the commencement of the Act, state the purpose of this Act, define certain terms used in the Act, and provides that this Act binds the Crown; and
b: key provisions that state who is liable to pay rates, what land is rateable, what kinds of rates may be set, and how rates are set.
3: Part 2
4: Part 3
a: provisions that relate to the assessment and payment of rates, and to the recovery of unpaid rates; and
b: provisions that set out requirements that relate to remission of rates, postponement of the requirement to pay rates, and the write-off of rates
5: Part 4
a: provisions that govern the liability for rates on Māori freehold land (including multiply-owned freehold land); and
b: provisions that govern the power to recover unpaid rates through the Māori Land Court; and
c: provisions that govern the remission and postponement of the requirement to pay rates assessed for Māori freehold land; and
d: provisions that allow Māori freehold land to be exempted from the payment of rates.
6: Part 5
a: provisions that relate to the replacement of invalid rates; and
b: miscellaneous provisions, amendments to other enactments, and transitional and savings provisions. Section 4(4)(b) amended 13 April 2021 section 5 Local Government (Rating of Whenua Māori) Amendment Act 2021
5: Interpretation
In this Act, unless the context otherwise requires,— abandoned land section 77 annual plan section 95 annual value section 2(1) capital project section 117A capital value section 2(1) common marine and coastal area section 9(1) customary marine title area section 9(1) district district valuation roll
a: in relation to a territorial authority, a roll prepared for a district under section 7 section 11
b: in relation to a regional council, the current district valuation rolls for the districts of the territorial authorities within its region due date dwelling
a: a garage, a shed, and any other building used in connection with the dwelling; and
b: the land attached or appurtenant to the dwelling and commonly used in connection with the dwelling early payment policy section 55 section 56 financial year funding impact statement
a: in relation to the first financial year to which a long-term plan relates, the funding impact statement included in the plan under clause 15
b: in relation to any other year, the funding impact statement included, under clause 20 section 95 general rate section 13 land land transfer register section 9 land value section 2(1) local authority long-term plan section 93 lump sum contribution section 117A Māori freehold land Māori freehold land in multiple ownership owner person actually using land person actually using a rating unit
a: leases the land; or
b: does 1 or more of the following things on the land for profit or other benefit:
i: resides on the land:
ii: depastures or maintains livestock on the land:
iii: stores anything on the land:
iv: uses the land in any other way postponed rates postponement policy section 110 public notice
a: a notice published in a newspaper circulating generally in the district; or
b: if there is no newspaper in general circulation in a district, a notice exhibited on placards that are affixed in public places in the district to which the subject matter of the notice relates Public Trust Public Trust Act 2001 rate
a: means a general rate, a targeted rate, or a uniform annual general charge that is set in accordance with subpart 2
b: includes a penalty added to a rate in accordance with section 58 ; but
c: does not include a lump sum contribution rateable value section 13(3) rates assessment or separate rating area rates invoice or separate rating area section 46 rates record section 37 rating information database section 27 rating sale rating lease section 68 rating unit Rating Valuations Act 1998 regional council Local Government Act 2002 remission policy section 109 remitted rates residual rating area sale separate rating area section 98A sewage disposal special consultative procedure section 83 structure section 9(1) targeted rate section 16 section 19 territorial authority Local Government Act 2002 Te Urewera Board trustees section 7 underlying rating unit section 98A uniform annual general charge section 15 1988 No 97 s 2 Section 5 annual plan substituted 1 July 2003 section 262 Local Government Act 2002 Section 5 capital project inserted 28 June 2006 section 4(1) Local Government (Rating) Amendment Act 2006 Section 5 common marine and coastal area inserted 1 April 2011 section 128 Marine and Coastal Area (Takutai Moana) Act 2011 Section 5 customary marine title area inserted 1 April 2011 section 128 Marine and Coastal Area (Takutai Moana) Act 2011 Section 5 district substituted 1 July 2003 section 262 Local Government Act 2002 Section 5 dwelling inserted 1 July 2021 section 6(1) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 5 funding impact statement inserted 1 July 2003 section 262 Local Government Act 2002 Section 5 funding impact statement substituted 27 November 2010 section 50 Local Government Act 2002 Amendment Act 2010 Section 5 funding impact statement amended 27 November 2010 section 50 Local Government Act 2002 Amendment Act 2010 Section 5 land transfer register amended 12 November 2018 section 250 Land Transfer Act 2017 Section 5 long-term council community plan repealed 27 November 2010 section 50 Local Government Act 2002 Amendment Act 2010 Section 5 long-term plan inserted 27 November 2010 section 50 Local Government Act 2002 Amendment Act 2010 Section 5 lump sum contribution inserted 28 June 2006 section 4(1) Local Government (Rating) Amendment Act 2006 Section 5 person actually using land repealed 1 July 2021 section 45(2) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 5 person actually using land person actually using a rating unit inserted 1 July 2021 section 6(1) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 5 postponement policy substituted 1 July 2003 section 262 Local Government Act 2002 Section 5 rate amended 28 June 2006 section 4(2) Local Government (Rating) Amendment Act 2006 Section 5 rate added 28 June 2006 section 4(2) Local Government (Rating) Amendment Act 2006 Section 5 rates assessment amended 1 July 2021 section 6(2) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 5 rates invoice amended 1 July 2021 section 6(3) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 5 regional council substituted 1 July 2003 section 262 Local Government Act 2002 Section 5 remission policy substituted 1 July 2003 section 262 Local Government Act 2002 Section 5 residual rating area inserted 1 July 2021 section 6(1) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 5 separate rating area inserted 1 July 2021 section 6(1) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 5 special consultative procedure substituted 1 July 2003 section 262 Local Government Act 2002 Section 5 structure inserted 1 April 2011 section 128 Marine and Coastal Area (Takutai Moana) Act 2011 Section 5 territorial authority substituted 1 July 2003 section 262 Local Government Act 2002 Section 5 Te Urewera Board trustees inserted 28 July 2014 section 138 Te Urewera Act 2014 Section 5 underlying rating unit inserted 1 July 2021 section 6(1) Local Government (Rating of Whenua Māori) Amendment Act 2021
5A: Transitional, savings, and related provisions
The transitional, savings, and related provisions set out in Schedule 1AA Section 5A inserted 1 July 2021 section 7 Local Government (Rating of Whenua Māori) Amendment Act 2021
5A: Temporary definition of public notice as result of outbreak of COVID-19
2020-11-01 Local Government (Rating) Act 2002 Section 5A is repealed on 1 November 2020. Section 5A repealed 1 November 2020
6: Act binds the Crown
This Act binds the Crown.
2: Key provisions
What is rateable?
7: Rateable land
1: All land is rateable.
2: However, land is not rateable if this Act or another Act states that the land is non-rateable. 1988 No 97 s 3
8: Non-rateable land
1: The land described in Part 1
2: Rates assessed for the land described in Part 2
3: Subsections (1) and (2) are subject to section 9 1988 No 97 ss 4–6
9: Non-rateable land liable for certain rates
Land to which section 8
a: the rate is set solely for water supply, sewage disposal, or refuse
b: the service referred to in paragraph (a) is provided in relation to the land. 1988 No 97 s 7 Section 9(a) amended 7 July 2004 section 3 Local Government (Rating) Amendment Act 2004 Who is a ratepayer?
10: Who is ratepayer?
For the purposes of this Act, a ratepayer
a: in relation to a rating unit, the person who is named as a ratepayer in the rating information database and the district valuation roll for the rating unit:
b: in relation to a separate rating area, the person who is named as the ratepayer in the rating information database for the separate rating area. Section 10 replaced 1 July 2021 section 8 Local Government (Rating of Whenua Māori) Amendment Act 2021
11: Entry of ratepayer in rating information database and district valuation roll
1: The name of the following persons must be entered in the rating information database and district valuation roll as the ratepayer in respect of a rating unit:
a: the owner of the rating unit; or
b: the lessee of the rating unit under a lease that—
i: is registered, after the commencement of this section, under section 91
ii: is for a term (including renewals) of not less than 10 years; and
iii: provides that the lessee must be entered in the rating information database and the district valuation roll as the ratepayer in respect of the unit.
2: The name of a person who is a lessee of a rating unit must be entered in the rating information database and district valuation roll as the ratepayer in respect of the unit if—
a: the name of the person was, immediately before the commencement of this section, entered in the district valuation roll as the occupier of a separately rateable property under the Rating Powers Act 1988 that substantially corresponds with the rating unit entered in the rating information database; and
b: the person is a party to a lease or licence with the owner—
i: that was entered into by the owner and the person before 8 August 2001; and
ii: remains in force; and
iii: either—
A: precludes the renegotiation of rent or any other payments that would allow the owner to be reimbursed if the owner were directly liable to pay the rates due on the unit; or
B: is a lease registered under section 91
3: Subsection (1) is subject to subsection (2).
4: For the purposes of subsection (2), it is sufficient evidence, unless the contrary is proved, that the person referred to in that subsection must be named in the rating information database and the district valuation roll if,—
a: in the case of a lease under subsection (2)(b)(iii)(A), the owner has provided a statutory declaration to the local authority that those provisions apply:
b: in the case of a lease under subsection (2)(b)(iii)(B), the owner has provided a certified copy of the record of title
5: For the purposes of subsection (2)(b)(ii), a lease must be treated as remaining in force if the lessee has exercised a right to renew the lease on the same terms and conditions.
6: In this section, lessee Section 11(1)(b)(i) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 11(2)(b)(iii)(B) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 11(4)(b) amended 12 November 2018 section 250 Land Transfer Act 2017 Who must pay rates?
12: Liability for rates
1: The ratepayer for a rating unit is liable to pay the rates that are due on the unit.
1A: The ratepayer for a separate rating area is liable to pay the rates that are due on the separate rating area.
2: However, a person other than the ratepayer may become liable to pay the rates in the circumstances set out in sections 61 to 62A 1988 No 97 s 121 Section 12(1A) inserted 1 July 2021 section 9(1) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 12(2) amended 13 April 2021 section 9(2) Local Government (Rating of Whenua Māori) Amendment Act 2021 What kinds of rates may be set?
13: General rate
1: A local authority may set a general rate for all rateable land within its district.
2: A general rate may be set—
a: at a uniform rate in the dollar of rateable value for all rateable land; or
b: at different rates in the dollar of rateable value for different categories of rateable land under section 14
3: For the purposes of this section, the rateable value
a: must be—
i: the annual value of the land; or
ii: the capital value of the land; or
iii: the land value of the land; and
b: must be identified in the local authority’s funding impact statement 1988 No 97 ss 12–15, 33, 43, 48 Section 13(3)(b) amended 1 July 2003 section 262 Local Government Act 2002
14: Categories of rateable land for setting general rate differentially
For the purposes of section 13(2)(b)
a: are identified in the local authority’s funding impact statement
b: are defined in terms of 1 or more of the matters listed in Schedule 2 1988 No 97 Part 5 Section 14(a) amended 1 July 2003 section 262 Local Government Act 2002
15: Uniform annual general charge
1: A local authority may set a uniform annual general charge for all rateable land within its district, being—
a: a fixed amount per rating unit; or
b: a fixed amount per separately used or inhabited part of a rating unit.
2: A uniform annual general charge is a rate for the purposes of this Act. 1988 No 97 s 19
16: Targeted rate
1: A local authority may set a targeted rate for 1 or more activities or groups of activities if those activities or groups of activities are identified in its funding impact statement as the activities or groups of activities for which the targeted rate is to be set.
2:
3: A targeted rate may be set in relation to—
a: all rateable land within the local authority’s district; or
b: 1 or more categories of rateable land under section 17
4: A targeted rate may be set—
a: on a uniform basis for all rateable land in respect of which the rate is set; or
b: differentially for different categories of rateable land under section 17 Section 16(1) substituted 1 July 2003 section 262 Local Government Act 2002 Section 16(2) repealed 1 July 2003 section 262 Local Government Act 2002
17: Categories of rateable land for setting targeted rate
For the purposes of section 16(3)(b) and (4)(b)
a: are identified in the local authority’s funding impact statement
b: are defined in terms of 1 or more of the matters listed in Schedule 2 1988 No 97 ss 17, 20, 26–31, 34, 39, 40, 44, 49 Section 17(a) amended 1 July 2003 section 262 Local Government Act 2002
18: Calculating liability for targeted rate
1: The calculation of liability for a targeted rate set under section 16
a: are identified in the local authority’s funding impact statement
b: are listed in Schedule 3
2: Despite subsection (1), the liability for a targeted rate may be calculated as a fixed amount per rating unit.
3: To avoid doubt, if targeted rates are set differentially, the rates concerned do not have to be calculated using the same factors for each category of land. Section 18(1)(a) amended 1 July 2003 section 262 Local Government Act 2002
19: Targeted rate for water supply
1: A local authority may set a targeted rate in accordance with its funding impact statement
2: A targeted rate under subsection (1) may be calculated—
a: as a fixed charge per unit of water consumed or supplied; or
b: according to a scale of charges. 1988 No 97 s 27 Section 19(1) amended 1 July 2003 section 262 Local Government Act 2002
19A: Rates not to overlap with targeted rates under Urban Development Act 2020
1: This section applies if an Order in Council under section 186 Kāinga Ora
2: The local authority may set a rate to fund activities or groups of activities only to the extent that the order does not authorise Kāinga Ora to set targeted rates to fund those activities or groups of activities. Examples
Example 1 The order authorises Kāinga Ora to set a targeted rate to fund roading within a project area. The local authority for the district in which the project area is located may set its own targeted rate to fund roading in a part of its district that is outside the project area. Example 2 A wastewater system serves the entire district of a local authority. The order authorises Kāinga Ora to set a targeted rate to fund the upgrade of the part of the wastewater system that serves the project area. The local authority may set its general rate at a level that enables it to fund the general maintenance and operation of the wastewater system across its entire district, including the part of the system that serves the project area.
3: If an example in this section is inconsistent with subsection (2), subsection (2) prevails. Section 19A inserted 7 August 2020 section 300 Urban Development Act 2020
20: Rating units in common ownership
Two or more rating units must be treated as 1 unit for assessing
a: owned by the same person or persons; and
b: used jointly as a single unit; and
c: contiguous or separated only by a road, railway, drain, water race, river, or stream. Section 20 amended 13 April 2021 section 10 Local Government (Rating of Whenua Māori) Amendment Act 2021
20A: Rating units of Māori freehold land used as a single unit
1: A person actually using 2 or more rating units of Māori freehold land may apply to the local authority for 2 or more of the rating units to be treated as 1 unit for the purposes of a rates assessment.
2: The local authority must treat the rating units as 1 unit for assessing a rate if—
a: the units are used jointly as a single unit by the person; and
b: the local authority is satisfied the units are derived from, or are likely to have been derived from, the same original block of Māori freehold land, meaning the first Māori land block that was held in an instrument of title and that included the land that became the rating units.
3: For the purposes of subsection (2)(b), it is sufficient evidence that 2 or more rating units of Māori freehold land are derived from the same original block of Māori freehold land if the rating units share a name in common according to the permanent record of the Māori Land Court.
4: If a local authority is not satisfied that the units are derived from, or are likely to have been derived from, the same block of Māori freehold land, the local authority—
a: may apply to the Registrar of the Māori Land Court for a determination as to whether the rating units are derived from the same original block of Māori freehold land; and
b: must do so on the request of the person actually using the units.
5: In this section, block section 4 Section 20A inserted 1 July 2021 section 11 Local Government (Rating of Whenua Māori) Amendment Act 2021 Maximum revenue from certain rates
21: Certain rates must not exceed 30% of total rates revenue
1: The rates revenue sought by a local authority in any year from the rates described in subsection (2) must not exceed 30% of the total revenue from all rates sought by the local authority for that year.
2: The rates are—
a: uniform annual general charges that are set in accordance with section 15
b: targeted rates that are set on a uniform basis and are calculated in accordance with section 18(2) clause 7
3: Subsection (2) does not apply to targeted rates that are set solely for water supply or sewage disposal. 1988 No 97 s 25
22: Defence land
1: This section applies to land owned or used by the Crown as an air force base, army camp, naval establishment, or other defence area within the meaning of section 2(1)
2: The total amount of any rates assessed under section 13(2) section 16 How are rates set?
23: Procedure for setting rates
1: Rates must be set by a resolution of the local authority.
2: Rates set by a local authority must—
a: relate to a financial year or part of a financial year; and
b: be set in accordance with the relevant provisions of the local authority’s long-term
3: A local authority may set a rate that is not provided for in its long-term
a: the local authority is satisfied that the rate is required to meet an unforeseen and urgent need for revenue that cannot reasonably be met by any other means, having regard to the manner in which it has, in its long-term
b: the local authority has given at least 14 days’ public notice of its intention to set the rate.
4: Notice under subsection (3)(b) must include—
a: the information in relation to the rate that would otherwise have been required to be included in the local authority’s funding impact statement; and
b: a statement of the nature of the unforeseen and urgent need for revenue and the reasons why that need cannot reasonably be met by any other means, having regard to the manner in which the local authority has, in its long-term
5: A local authority must, within 20 working days after making a resolution, make the resolution publicly available on an Internet site maintained by it or on its behalf to which the public has free access. 1988 No 97 ss 109–111 Section 23(2)(b) substituted 1 July 2003 section 262 Local Government Act 2002 Section 23(2)(b) amended 27 November 2010 section 50 Local Government Act 2002 Amendment Act 2010 Section 23(3) substituted 1 July 2003 section 262 Local Government Act 2002 Section 23(3) amended 27 November 2010 section 50 Local Government Act 2002 Amendment Act 2010 Section 23(3)(a) amended 27 November 2010 section 50 Local Government Act 2002 Amendment Act 2010 Section 23(4) substituted 1 July 2003 section 262 Local Government Act 2002 Section 23(4)(b) amended 27 November 2010 section 50 Local Government Act 2002 Amendment Act 2010 Section 23(5) replaced 21 March 2019 section 32 Local Government Regulatory Systems Amendment Act 2019
24: Due date or dates for payment
A local authority must state, in the resolution setting a rate,—
a: the financial year to which the rate applies; and
b: the date on which the rate must be paid or, if the rate is payable by instalments, the dates by which the specified amounts must be paid. 1988 No 97 ss 109(1)(c), 124, Part 9 Regulations relating to rating of educational establishments
25: Regulations relating to rating of educational establishments
1: The Governor-General may, by Order in Council, make regulations prescribing how local authorities may assess rates for sewage disposal under section 9 clause 6(a) or (b)
2: Regulations—
a: may not be made before 1 July 2005; and
b: may be made only on the recommendation of the Minister; and
c: may be made only after a report that complies with section 26
3: Before making a recommendation under subsection (2)(b), the Minister must consult—
a: New Zealand Local Government Association Incorporated; and
b: any other organisations that the Minister considers have a particular interest in the regulations.
4: In this section and section 26 Minister
5: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 25(2) substituted 22 October 2003 section 3 Local Government (Rating) Amendment Act 2003 Section 25(5) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
26: Report of Ministerial review of rating practice in relation to educational establishments
A report complies with this section if—
a: the report is made by the Minister; and
b: the report reviews the practice of local authorities, in relation to not fewer than 2 consecutive financial years
i: in assessing rates for sewage disposal under section 9 clause 6(a) or (b)
ii: in remitting those rates; and
c: in preparing the report, the Minister has consulted—
i: the Minister responsible for the administration of Part 6
ii: New Zealand Local Government Association Incorporated; and
iii: any other organisations that the Minister considers have a particular interest in the review; and
d: the report is presented to Parliament by the Minister. Section 26(b) amended 22 October 2003 section 4(1) Local Government (Rating) Amendment Act 2003 Section 26(c)(i) amended 1 August 2020 section 668 Education and Training Act 2020
2: Rating information database and rates records
Rating information database
27: Rating information database
1: A local authority must keep and maintain a rating information database.
2: The database may be kept and maintained in written or electronic form, or both.
3: The purpose of the database is—
a: to record all information required for setting and assessing rates; and
b: to enable a local authority to communicate with ratepayers; and
c: to enable members of the public to have reasonable access to the information in the database relating to the calculation of liability for rates.
4: The database must include, in relation to each rating unit within the local authority’s district,—
a: all information that relates to the unit that is included in the district valuation roll for the district; and
b: all information that relates to the unit that is required to—
i: determine the category (if any) to which the unit belongs for setting a general rate in accordance with section 13(2)(b)
ii: determine the category (if any) to which the unit belongs for setting a targeted rate in accordance with section 16(3)(b) or (4)(b)
iii: calculate the amount of liability for a targeted rate under section 18 ; and
c: any information required under section 117K(1)
d: if the unit is subject to targeted rates under the Urban Development Act 2020 section 212
5: The information in subsection (4) may be recorded separately for different parts of a rating unit if separate records are necessary because of different rating treatment of each part resulting from:
a: the inclusion of different parts in different categories under subsection (4)(b)(i) or (ii):
b: the application of Part 1 Part 2
c: the application of a remission policy, a postponement policy, or a rates relief policy for Māori freehold land to 1 or more parts of the rating unit:
d: 1 or more separate rating areas being divided from a rating unit under section 98A
6: The rating information database must be maintained so that it may be searched according to—
a: the reference number of the unit or a separate rating area
b: the address of the unit or a separate rating area
c:
7: This section does not prevent a regional council from—
a: keeping a rating information database in separate parts for the constituent districts of the region; and
b: delegating the function of maintaining those parts to the territorial authorities concerned. 1988 No 97 s 105(4), (5) Section 27(4)(b)(iii) amended 28 June 2006 section 5 Local Government (Rating) Amendment Act 2006 Section 27(4)(c) added 28 June 2006 section 5 Local Government (Rating) Amendment Act 2006 Section 27(4)(d) inserted 7 August 2020 section 300 Urban Development Act 2020 Section 27(5)(d) inserted 1 July 2021 section 12(1) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 27(6)(a) amended 1 July 2021 section 12(2) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 27(6)(b) amended 1 July 2021 section 12(2) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 27(6)(c) repealed 1 December 2020 section 217 Privacy Act 2020
28: Inspection of rating information database
1: The rating information database must be available for inspection—
a: at the principal public office of the local authority and any other place that the local authority considers necessary in order to provide reasonable access to all ratepayers and residents of the district; and
b: during ordinary office hours or the hours at which the place is open to the public.
2: The copy of the rating information database that is made available for inspection must not include the name of any person (unless it is necessary to identify the rating unit or separate rating area or separate rating area
3: No fee is payable for inspecting the rating information database, but a person may be charged a reasonable fee for being supplied with a copy of the particulars.
4: The local authority must, during the month of May, give public notice that the rating information database is available for inspection and of the place and times it may be inspected.
5: In addition to the notice required under subsection (4), a local authority may notify ratepayers at any other time it considers appropriate and by any means it thinks fit. 1988 No 97 ss 108, 110(3) Section 28(2) amended 1 July 2021 section 13 Local Government (Rating of Whenua Māori) Amendment Act 2021
28A: Inspection of complete rating information database
1: In this section, and sections 28B to 28D database
a: that the local authority must make available under subsection (2); and
b: that contains the information required under subsection (3).
2: For the purpose of inspecting any information in relation to a particular rating unit or separate rating area
a: available to any person—
i: at the principal public office of the local authority; and
ii: during office hours; and
b: accessible to the person by the person—
i: accessing the database by himself or herself; or
ii: requesting an officer of the local authority to provide the information.
3: The rating information database made available under subsection (2) must include, for each rating unit or separate rating area or separate rating area
a: the name of the owner of the rating unit or separate rating area
b: the postal address of the owner of the rating unit or separate rating area
4: The local authority may make the database or any part of it available at any other office of the local authority, but only in the same manner as it is accessible by people at the principal public office.
5: No fee is payable for inspecting any database made available under this section, but a person may be charged a reasonable fee for being supplied with a copy of the particulars.
6: For the avoidance of doubt, a person may make, at the same inspection of the database, a series of requests about particular rating units or separate rating areas
a: related; and
b: for purposes other than for the bulk collection of the names or postal addresses (or both) of people included in the database.
7: This section—
a: overrides sections 27(3) 28
b: is modified by section 28D Section 28A inserted 7 July 2004 section 4 Local Government (Rating) Amendment Act 2004 Section 28A(2) amended 1 July 2021 section 14(1) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 28A(3) amended 1 July 2021 section 14(2) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 28A(3)(a) amended 1 July 2021 section 14(2) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 28A(3)(b) amended 1 July 2021 section 14(2) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 28A(6) amended 1 July 2021 section 14(3) Local Government (Rating of Whenua Māori) Amendment Act 2021
28B: Local authority must inform owners
of rating units and ratepayers for separate rating areas The local authority—
a: must, by written notice, inform every owner of a rating unit and ratepayer for a separate rating area section 28C
b: may give the written notice in conjunction with any other rates information the local authority is required to provide. Sections 28B inserted 7 July 2004 section 4 Local Government (Rating) Amendment Act 2004 Section 28B heading amended 1 July 2021 section 15(1) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 28B(a) amended 1 July 2021 section 15(2) Local Government (Rating of Whenua Māori) Amendment Act 2021
28C: Owner
of rating unit and ratepayer for separate rating area
1: An owner of a rating unit or ratepayer for a separate rating area
2: An owner or ratepayer
a: must make the request in writing; but
b: is not required to provide reasons for the request.
3: On receipt of a request, the local authority must, as soon as practicable,—
a: remove the relevant particulars from the database; and
b: notify the owner or ratepayer
4: An owner or ratepayer Section 28C inserted 7 July 2004 section 4 Local Government (Rating) Amendment Act 2004 Section 28C heading amended 1 July 2021 section 16(1) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 28C(1) amended 1 July 2021 section 16(2) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 28C(2) amended 1 July 2021 section 16(3) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 28C(3)(b) amended 1 July 2021 section 16(3) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 28C(4) amended 1 July 2021 section 16(3) Local Government (Rating of Whenua Māori) Amendment Act 2021
28D: Transitional provision for local authority to establish database
Section 28D repealed 1 July 2021 section 17 Local Government (Rating of Whenua Māori) Amendment Act 2021
29: Objections to rating information database
1: A person who is named in the rating information database as a ratepayer may object to the information contained in the database on 1 or more of the following grounds:
a: that a rating unit included in the district valuation roll has been omitted from the database:
b: that information included in the district valuation roll has been omitted from, or inaccurately entered in, the database:
c: that information included in the database, other than information entered from the district valuation roll, is incorrect:
d: that there has been a failure to enter a lawful amendment to the district valuation roll into the database.
1A: A person who is named in the rating information database as the ratepayer for a separate rating area or its underlying rating unit may also object to the information contained in the database on the ground that the apportionment of rates fails to comply with section 98B
2: Objections must be lodged with the local authority.
3: A local authority must notify the objector in writing of its decision on an objection and, if the objection is upheld,—
a: correct the entry in the rating information database; and
b: advise the ratepayer that the correction has been made.
4: A person may not object under this section to the correctness or otherwise of any information contained in the database that relates to an objection to the valuation of a rating unit under the Rating Valuations Act 1998
5: Subsection (4) is for the avoidance of doubt. 1988 No 97 s 116 Section 29(1A) inserted 1 July 2021 section 18 Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 29(4) added 28 June 2006 section 6 Local Government (Rating) Amendment Act 2006 Section 29(5) added 28 June 2006 section 6 Local Government (Rating) Amendment Act 2006 Notification of change in circumstances
30: Interpretation
In sections 31 to 36 relevant local authority
a: the territorial authority in whose district the rating unit is situated; and
b: if the rating unit is situated in the region of a regional council, the regional council.
31: Notification of change of ownership of rating unit
1: If an owner of a rating unit sells or otherwise transfers the unit, or any part of the unit, the owner must notify the relevant local authority of the sale or transfer within 1 month after the effective date of the sale or transfer.
2: Notice under subsection (1) must include—
a: the full name and address of the purchaser or transferee; and
b: in the case of a sale, the sale price.
3: If a person becomes the owner of a rating unit by the operation of law (including the creation of a joint family home), the person must, within 1 month after the registration of the instrument under which the person became the owner, or one of the owners of the unit, notify the relevant local authority of the following matters:
a: that he or she is the owner of the rating unit:
b: his or her full name and address.
4: If a solicitor or other authorised agent acted on behalf of the owner under subsection (1) or the person registering the instrument under subsection (3), the solicitor or agent must give the notice concerned. 1988 No 97 s 106(2)–(4)
32: Notification of surrender or termination of lease or licence
1: The owner of a rating unit who has made a statutory declaration under section 11(4)(a) record of title
a: the lease or licence in relation to which the declaration has been made, or record of title
b: an opportunity to renegotiate the rent or other payments has occurred.
2: A person who is a ratepayer under section 11(2)
3: Notice given under subsection (1) or subsection (2) is, unless the contrary is proved, sufficient evidence that the owner of the rating unit must be named as the ratepayer for that unit in the rating information database and the district valuation roll. Section 32(1) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 32(1)(a) amended 12 November 2018 section 250 Land Transfer Act 2017
33: Notification of transfer or assignment of lease or licence
1: If any person who is a ratepayer under section 11(2)
2: A local authority that receives notice under subsection (1) must update the rating information database accordingly.
34: Effect of notice on liability for rates
Notice given under sections 31 to 33 1988 No 97 s 106(7)
35: When name of ratepayer entered in rating information database may be removed
The name of a person who is entered as a ratepayer in the rating information database must not be removed unless—
a: notice has been given to the relevant local authority under sections 31 33
b: the relevant local authority is satisfied that the name has been removed from the land transfer register, if the entry relates to a rating unit that is entered in that register.
36: Notification of change of name
1: A person whose name is entered in the rating information database as a ratepayer in respect of a rating unit must notify the relevant local authority of a change in his or her name if—
a: the entry relates to a rating unit that is entered in the land transfer register; and
b: the person has registered his or her change of name in that register.
2: A person to whom subsection (1) applies must notify the relevant local authority within 1 month of the registration of those particulars in the land transfer register, and the rating information database must be updated accordingly. 1988 No 97 s 106(8) Rates records
37: Rates records
1: A local authority must keep and maintain a rates record for each rating unit and separate rating area
a: the amount of the ratepayer’s liability for rates in respect of that unit or separate rating area
b: any information required under section 117K(2) or separate rating area
c: if the unit is subject to targeted rates under the Urban Development Act 2020 section 213
2: Rates records may be kept and maintained in written or electronic form, or both.
3: If a rates record includes any information that is referred to in section 27(4) or separate rating area 1988 No 97 s 113 Section 37(1) substituted 28 June 2006 section 7 Local Government (Rating) Amendment Act 2006 Section 37(1) amended 1 July 2021 section 19(1) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 37(1)(a) amended 1 July 2021 section 19(2) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 37(1)(b) amended 1 July 2021 section 19(2) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 37(1)(c) inserted 7 August 2020 section 300 Urban Development Act 2020 Section 37(3) amended 1 July 2021 section 19(3) Local Government (Rating of Whenua Māori) Amendment Act 2021
38: Inspection of rates records
1: The following persons may inspect the rates record for a rating unit or separate rating area
a: the ratepayer:
b: a person who is authorised by the ratepayer to do so:
c: a person who has become liable to pay the rates in respect of the unit under section 61 section 62
d: a solicitor, a person (not being a lawyer) who provides conveyancing services, a real estate agent, or any other person, who—
i: is a party to (or acting as an agent for a party to) a transaction relating to the rating unit or separate rating area
ii: reasonably requires the information in the rates record for the purposes of the transaction:
e: any member of the public with respect to rates assessed, but not including arrears, remissions, or postponed rates.
2: The rates records must be available for inspection—
a: at the principal public office of the local authority and any other place that the local authority considers necessary in order to provide reasonable access to all ratepayers and residents of the district; and
b: during ordinary office hours or the hours at which the place is open to the public.
3: For the purposes of this section, a local authority may request from a person, by any reasonable means that the local authority considers appropriate, confirmation that he or she—
a: falls within the class of people described in subsection (1)(d)(i); and
b: reasonably requires the information in the rates record for the purposes of subsection (1)(d)(ii). 1988 No 97 s 115 Section 38(1) amended 1 July 2021 section 20(1) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 38(1)(d) substituted 7 July 2004 section 5(1) Local Government (Rating) Amendment Act 2004 Section 38(1)(d)(i) amended 1 July 2021 section 20(2) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 38(3) added 7 July 2004 section 5(2) Local Government (Rating) Amendment Act 2004
39: Objection to rates records
1: A ratepayer, or a person who has become liable to pay rates under section 61 section 62
a: that the rates are incorrectly calculated:
b: that the rates balance shown in respect of the rating unit or separate rating area
2: Objections must be lodged with the local authority.
3: A local authority must notify the ratepayer in writing of its decision on an objection and, if the objection is upheld, correct the entry in the rates record accordingly. 1988 No 97 s 116 Section 39(1)(b) amended 1 July 2021 section 21 Local Government (Rating of Whenua Māori) Amendment Act 2021
40: Local authority may correct errors in rating information database and rates records
A local authority may correct an error in the rating information database or rates records even though an objection has not been made. 1988 No 97 s 117
41: Amended assessment if error in rating information database or rates record is corrected
1: A local authority must issue an amended rates assessment in substitution for the original assessment if it has delivered a rates assessment for a financial year and, within 5 years after the last day of that year,—
a: an error in the rating information database or rates record in respect of the rating unit or separate rating area section 29 section 39 section 40
b: the correction gives rise to a difference between the amount of rates that was originally assessed and the amount that would have been payable if the information entered in the rating information database or on the rates assessment had been correct.
2: If the amended rates assessment under subsection (1) is for an amount of rates that is less than the amount originally assessed, the local authority must refund to the person who paid the rates any rates paid in excess of the amount payable on the amended assessment.
3: If the amended rates assessment under subsection (1) is for an amount of rates that is more than the amount originally assessed and is issued in the same financial year, and to the same person, as the original assessment, that person is liable to pay the amount of the excess rates.
4: No person is liable for the payment of excess rates except in accordance with subsection (3). 1988 No 97 s 118 Section 41(1)(a) amended 1 July 2021 section 22 Local Government (Rating of Whenua Māori) Amendment Act 2021
41A: Amended assessment to give effect to objection to valuation under Rating Valuations Act 1998
1: A local authority must issue an amended rates assessment for a rating unit or separate rating area
a: it has issued a rates assessment in respect of the rating unit or separate rating area
b: after issuing the assessment, it has—
i: altered information section 39
ii: consequentially altered the information in relation to the rating unit or separate rating area
c: the alteration in the database gives rise to a difference between the amount of rates that was originally assessed and the amount that would have been payable for that year if the information entered in the database had been the information referred to in paragraph (b)(ii).
2: An amended assessment must be issued—
a: no later than 1 month after the alteration concerned was made to the rating information database; or
b: in the case of a regional council to which section 27(7)
3: If the amended assessment is for an amount that is less than the amount originally assessed, the local authority must refund to the person who paid the rates any rates paid in excess of the amount payable on the amended assessment.
4: However, a local authority is not required to make a refund if it does not have the contact details of the person who paid the rates.
5: If the amended assessment is for an amount that is more than the amount originally assessed, the local authority may recover the excess rates payable on the amended assessment.
6: However, a local authority may only recover the amount if the person who paid the original assessment is also the person to whom the amended assessment is issued. Section 41A inserted 28 June 2006 section 8 Local Government (Rating) Amendment Act 2006 Section 41A(1) amended 1 July 2021 section 23(1) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 41A(1)(a) amended 1 July 2021 section 23(2) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 41A(1)(b)(i) amended 1 July 2021 section 23(3) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 41A(1)(b)(ii) amended 1 July 2021 section 23(2) Local Government (Rating of Whenua Māori) Amendment Act 2021
42: Recovery of additional rates in certain cases
1: Despite section 41(4)
a: there has been a change in any matter affecting the liability of the ratepayer to pay rates; and
b: the ratepayer has failed to notify the local authority of a change in circumstances in accordance with sections 31 to 33
c: as a result, the local authority has not collected the full amount of rates to which it was entitled for the rating unit.
2: The amount of the additional rates recovered under subsection (1) must be calculated in accordance with the following formula: a − b where—
a: is the rates that would have been assessed on the rating unit if the notice had been given on time
b: is the rates that were actually assessed on the rating unit from that time.
3: The local authority may add interest to the amount calculated under subsection (2) at a rate per annum fixed by the local authority, except that the interest rate, when fixed, must not exceed the rate charged to the local authority by its bank for its day-to-day cash account.
4: This section applies to the interest as if it were a penalty imposed under section 58
3: Assessment, payment, and recovery of rates and
remission, postponement, and write-off of rates Part 3 heading amended 13 April 2021 section 24 Local Government (Rating of Whenua Māori) Amendment Act 2021
1: Assessment, payment, and recovery
Basis for assessment of rates
43: Rates must be assessed in accordance with values and factors
1: Rates must be assessed in accordance with either—
a: a rating unit and its rateable values that are set out in the rating information database; or
b: the factors relevant to a rating unit that are set out in the rating information database; or
c: in the case of a targeted rate under section 19
2: For the purpose of subsection (1)(a) and (b), the relevant rating unit, values, or factors are those that have been corrected as at the end of the financial year immediately before the financial year for which the rates are set.
3: The rates are not affected by a change in the rateable value or factors of a rating unit during the financial year in which the rates are set. 1988 No 97 s 123(1), (2) Notice to ratepayers of rates liability
44: Notice of rates assessment
1: A local authority must deliver a rates assessment to a ratepayer to give notice of the ratepayer’s liability for rates on a rating unit or separate rating area
2: A ratepayer is liable for rates on a rating unit or separate rating area or separate rating area
3: See section 201 1988 No 97 s 122(1), (3) Section 44(1) amended 1 July 2021 section 25(1) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 44(2) amended 1 July 2021 section 25(2) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 44(3) inserted 7 August 2020 section 300 Urban Development Act 2020
45: Contents of rates assessment
1: A rates assessment must clearly identify all of the following:
a: the name and address of the local authority:
b: the name and address of the ratepayer:
c: the number on the district valuation roll of the rating unit:
d: the legal description and location of the rating unit:
e: the rateable value of the rating unit:
f: the amount and a description of each rate:
g: the activities or groups of activities of the local authority that will be funded from each rate:
h: the relevant matters in Schedule 2
i: the category (if any) to which the rating unit belongs for the purposes of setting general rates differentially under section 13(2)(b)
ii: the category (if any) to which the unit belongs for the purposes of setting a targeted rate under section 16(3)(b) or (4)(b)
i: information on the factors used to calculate the amount of the liability of a rating unit in respect of each targeted rate:
j: the financial year for which the rates are payable:
k: the total amount of rates payable on the rating unit for the financial year:
l: whether or not the local authority has a remission policy, a postponement policy, or a rates relief policy for Māori freehold land and, if so, a brief description of the criteria for rates relief under each policy:
m: the methods by which rates may be paid and the date or, if the rates are payable by instalments, the dates by which specified amounts must be paid:
n: if applicable,—
i: the penalty regime of the local authority; and
ii: a warning that, if rates are not paid on time, a penalty may be added under that regime:
o: if an early payment of rates has been made in accordance with a policy adopted under section 56(1)
i: the rates paid and any balance remaining to be paid; and
ii: the amount of any discount allowed for the early payment of the rates; and
iii: any credit balance remaining after payment of all rates due, adjusted for any discount allowed:
p: the right of ratepayers to—
i: inspect the rating information database and rates records; and
ii: object to any of the information included in the rating information database and rates records.
1A: If the ratepayer has elected to make a lump sum contribution to a local authority’s capital project, the rates assessment must also identify the targeted rates for the financial year for which, as a result of the election, no liability attaches to the rating unit.
2: A rates assessment may include any other information that the local authority thinks fit.
3: A rates assessment may be in 2 or more parts to identify the different treatment, for rating purposes, of different parts of a rating unit.
4: If subsection (3) applies,—
a: the information required under subsection (1) must be given for each part of the assessment as if each part were a separate assessment; and
b: each part must state that it is part of the rates assessment for the rating unit and identify the number of other parts that are included in the assessment.
(4A): If subsection (3) applies because 1 or more separate rating areas have been divided from a rating unit,—
a: the information required by subsection (1) must be provided for the residual rating area (if any) of the rating unit; and
b: a separate rates assessment must be provided for each separate rating area in the rating unit in accordance with section 98C
5: See section 202 1988 No 97 s 122(1) Section 45(1)(g) substituted 1 July 2003 section 262 Local Government Act 2002 Section 45(1A) inserted 28 June 2006 section 9 Local Government (Rating) Amendment Act 2006 Section 45(4A) inserted 1 July 2021 section 26 Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 45(5) inserted 7 August 2020 section 300 Urban Development Act 2020
46: Rates invoice
1: If a rates payment is due for a particular period, the local authority must deliver to the ratepayer a rates invoice for the rating unit or separate rating area
2: A rates invoice must clearly identify all of the following:
a: the name and address of the local authority:
b: the name and address of the ratepayer:
c: the legal description and location of the rating unit or separate rating area
d: the total amount of rates payable for the financial year for the rating unit or separate rating area
e: the amount of rates that have been paid to date for the financial year:
f: the amount payable on the current rates invoice:
g: the date on which the payment is due on the current rates invoice:
h: where the rates may be paid:
i: if the local authority has a penalty regime,—
i: a warning that, if the rates are not paid on time, a penalty may be added; and
ii: if a penalty has been added in the current financial year, the amount of the penalty on any unpaid rates for the rating unit or separate rating area
j: the amount of any unpaid rates owing from a previous financial year for the rating unit or separate rating area
3: A rates invoice may include any other information that the local authority thinks fit.
4: A local authority may deliver a separate rates invoice for any targeted rate in accordance with subsection (1).
5: A rates invoice delivered under subsection (4) must—
a: set out the matters required by subsection (2); and
b: specify the rate covered by the invoice; and
c: if the invoice covers a rate set under section 43(1)(c)
6: See section 203 or separate rating area Section 46(1) amended 1 July 2021 section 27 Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 46(2)(c) amended 1 July 2021 section 27 Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 46(2)(d) amended 1 July 2021 section 27 Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 46(2)(i)(ii) amended 1 July 2021 section 27 Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 46(2)(j) amended 1 July 2021 section 27 Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 46(6) inserted 7 August 2020 section 300 Urban Development Act 2020 Section 46(6) amended 1 July 2021 section 27 Local Government (Rating of Whenua Māori) Amendment Act 2021
47: Issue of amended rates invoice
1: If a rates invoice is incorrect as to the amount of rates payable by a ratepayer in respect of a rating unit or separate rating area section 46 or separate rating area
2: The ratepayer’s liability to pay is not affected by the fact that correction of the rates invoice is required.
3: If an amended rates invoice is required under subsection (1),—
a: there is no limit as to the time by which delivery must be made:
b: penalties must not be charged on the difference between the amount stated on the incorrect rates invoice and the amount stated on the amended invoice before a date 14 days after delivery of the amended invoice. Section 47(1) amended 1 July 2021 section 28 Local Government (Rating of Whenua Māori) Amendment Act 2021
48: Delivery of rates assessment and rates invoice
1: The rates assessment for a rating unit or separate rating area or separate rating area section 136
2: However, a local authority may deliver the rates invoice with the rates assessment, and is not required to deliver a separate rates invoice, if the rates assessment includes all the information required by section 46
3: A rates invoice must be delivered to the ratepayer of a rating unit or separate rating area 1988 No 97 s 122(4)–(6) Section 48(1) amended 1 July 2021 section 29(1) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 48(3) amended 1 July 2021 section 29(2) Local Government (Rating of Whenua Māori) Amendment Act 2021
49: Late delivery of rates invoice
If the rates invoice is not delivered at least 14 days before the due date, the rates payment is not due until 14 days after the rates invoice has been delivered to the ratepayer of the rating unit or separate rating area 1988 No 97 s 153(a) Section 49 amended 1 July 2021 section 30 Local Government (Rating of Whenua Māori) Amendment Act 2021
50: Rates invoice based on previous year’s rates
1: A local authority may deliver a rates invoice for not more than 25% of the rates that are payable in the previous year if it is not able to deliver a rates assessment at least 14 days before—
a: the date on which the first payment of rates for the current year is payable in a case where the rates have been set by resolution of the local authority under section 23
b: the date 1 calendar year after the date when the first payment of rates for the previous year was payable in a case where no resolution has been made under section 23
2: A rates invoice delivered under subsection (1) must comply with section 46(2)
51: Combined rates assessment and rates invoice
1: If a ratepayer is liable for the payment of rates on 2 or more rating units or separate rating areas or separate rating areas
2: The combined rates assessment must clearly set out all the information required by section 45 or separate rating area
3: The combined rates invoice must clearly distinguish the rates for each rating unit or separate rating area section 46 or separate rating area 1988 No 97 s 125 Section 51(1) amended 1 July 2021 section 31(1) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 51(2) amended 1 July 2021 section 31(2) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 51(3) amended 1 July 2021 section 31(3) Local Government (Rating of Whenua Māori) Amendment Act 2021 Collection of rates
52: Payment of rates
1: Rates are payable at—
a: any public office of the local authority; and
b: any other place publicly notified or specified on the rates invoice as a place of payment.
2: Rates may be paid by any method that is agreed to by the local authority. 1988 No 97 s 130
53: One or more local authorities may appoint collector
1: One or more local authorities may appoint a person or a local authority to collect the rates they assess.
2: A collector who acts on behalf of 2 or more local authorities may, in a single rates assessment, combine all the rates for which a ratepayer is liable to each local authority, but the rates assessment must—
a: clearly distinguish the rates that are payable to each local authority; and
b: set out the information required by section 45
3: A collector who acts on behalf of 2 or more local authorities may combine in a single rates invoice all the rates payments payable by a ratepayer to each local authority for a particular period, but the rates invoice must—
a: clearly distinguish the rates that are due to each local authority; and
b: set out the information required by section 46
4: A local authority and a collector may agree to any other arrangement for the delivery of rates assessments and rates invoices, and for the collection of rates, but only if the rates assessments and rates invoices meet the requirements of subsections (2) and (3) respectively. 1988 No 97 s 126
54: Power not to collect small amounts
1: Despite the other provisions of this Act, if the rates payable on a rating unit or separate rating area
2: If a local authority decides, under subsection (1), not to collect the rates,—
a: the ratepayer of the rating unit or separate rating area
b: no penalties may be added to the unpaid rates.
3: If subsection (1) applies, the local authority—
a: must notify the ratepayer that the local authority has decided not to collect the rates; and
b: may, if a rates assessment for the rating unit or separate rating area
i: include the notice under paragraph (a) with the rates assessment; or
ii: omit to deliver the rates assessment. 1988 No 97 s 109(2) Section 54(1) amended 1 July 2021 section 32(1) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 54(2)(a) amended 1 July 2021 section 32(1) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 54(3)(b) amended 1 July 2021 section 32(2) Local Government (Rating of Whenua Māori) Amendment Act 2021 Provision for early payment of rates
55: Policy for early payment of rates in current financial year
1: A local authority may adopt a policy for the payment of some or all rates that are identified in the rates assessment before the due date or dates for those rates in the current financial year.
2: A policy adopted under subsection (1)—
a: must be adopted using the special consultative procedure; and
b: may be included in the long-term
3: A policy adopted under this section may provide for the local authority to discount the amount of the rates if payment is made by a specified date before the due date or dates. 1988 No 97 s 131 Section 55(2)(b) amended 27 November 2010 section 50 Local Government Act 2002 Amendment Act 2010 Section 55(2)(b) amended 1 July 2003 section 262 Local Government Act 2002
56: Policy for payment of rates for subsequent financial year
1: A local authority may adopt a policy for the payment of rates in anticipation of rates for subsequent financial years.
2: A policy of the kind referred to in subsection (1) may provide for either or both of the following circumstances:
a: any sum may be paid in a financial year in anticipation of a liability for general rates in subsequent financial years:
b: any sum may be paid in a financial year in anticipation of a liability for 1 or more targeted rates, or for targeted rates for 1 or more specified activities or groups of activities
3: If rates are paid in accordance with a policy adopted under subsection (1), the local authority must credit the payment in accordance with the policy and the instructions, if any, of the person making the payment.
4: Section 55(2) and (3)
5: To avoid doubt, payments made under this section must be credited against future rates, whether or not the policy under which the payment was made is still in force when the rates are assessed. 1988 No 97 Part 4, s 131 Section 56(2)(b) amended 1 July 2003 section 262 Local Government Act 2002 Penalties
57: Penalties on unpaid rates
1: A local authority may, by resolution, authorise penalties to be added to rates that are not paid by the due date.
2: A resolution made under subsection (1) must—
a: be made not later than the date when the local authority sets the rates for the financial year; and
b: state—
i: how the penalty is calculated; and
ii: the date that the penalty is to be added to the amount of the unpaid rates.
3: A penalty must not—
a: exceed 10% of the amount of the unpaid rates on the date when the penalty is added; or
b: be added to rates postponed under section 87 1988 No 97 s 132(1)–(3)
58: Imposition of penalty
1: A local authority may impose the following types of penalty:
a: a penalty on rates assessed in the financial year for which the resolution is made and that are unpaid after the due date for payment (or after a later date if so specified):
b: a further penalty on rates assessed in any financial year and that are unpaid on whichever day is the later of—
i: the first day of the financial year for which the resolution is made; or
ii: 5 working days after the date on which the resolution is made:
c: a further penalty on rates to which a penalty has been added under paragraph (b), if the rates are unpaid 6 months after that penalty was added.
2: The amount of unpaid rates to which a penalty may be added includes—
a: a penalty previously added to unpaid rates under this section; or
b: additional charges added to unpaid rates under section 132 of the Rating Powers Act 1988; or
c: rates levied under the Rating Powers Act 1988 that remain unpaid. 1988 No 97 s 132(4), (5) Recovery of unpaid rates
59: Rates are charge against rating unit
Rates assessed in respect of a rating unit are a charge against that unit. 1988 No 97 s 136
60: Invalidity of rates not ground for refusal to pay rates
A person must not refuse to pay rates on the ground that the rates are invalid unless the person brings proceedings in the High Court to challenge the validity of the rates on the ground that the local authority is not empowered to set or assess the rates on the particular rating unit. 1988 No 97 s 138 Recovery from persons other than owner
61: Default by person other than owner
1: If a ratepayer other than the owner, as described in section 11(2)
2: An owner who pays the unpaid rates under subsection (1) may—
a: recover that amount from the ratepayer as a debt; or
b: retain that amount from any money that the owner owes to the ratepayer. 1988 No 97 s 143(3)
62: Recovery of rates if owner in default
1: If an owner defaults in paying the rates, the local authority may—
a: notify persons with an interest in the rating unit for which the rates are payable (including an interest as first mortgagee) of—
i: the fact of the default; and
ii: the provisions of this section; and
b: accept payment of the rates from the persons referred to in paragraph (a); or
c: recover, as a debt from the first mortgagee of a rating unit, the rates payable in respect of the rating unit that remain unpaid on a date that is—
i: not less than 3 months after notice has been given to that person under paragraph (a); and
ii: not earlier than 1 November in the financial year following the year in which the rates were first assessed.
2: A person (other than a mortgagee) who pays the unpaid rates under subsection (1) may—
a: recover that amount from the owner as a debt; or
b: retain that amount from any money that that person pays to the owner in respect of a debt other than that relating to unpaid rates.
3: If a mortgagee pays the unpaid rates under subsection (1), the amount paid must be treated as part of the money secured by the mortgage until it is repaid to the mortgagee, and the provisions of the mortgage apply to that amount.
4: This section does not affect any agreement between persons about their liability as between themselves to pay the rates for a rating unit. 1988 No 97 s 139(1), (3), (4), (6)
62A: Person actually using certain abandoned general land liable for rates
1: This section applies to land if—
a: the land is general land that ceased to be Māori land under Part 1 of the Maori Affairs Amendment Act 1967
b: the land is beneficially owned by the persons, or by the descendants of the persons, who beneficially owned the land immediately before the land ceased to be Māori land; and
c: rates have not been paid to the local authority by the owner of the land for 3 years or more; and
d: the owner of the land—
i: is unknown; or
ii: cannot be found after due inquiry and has no known agent in New Zealand; or
iii: is deceased and has no personal representative; or
iv: has given notice to the local authority that they intend to abandon or have abandoned the land.
2: A person actually using land to which this section applies is liable for rates on the land in respect of the period commencing on or after the date they started using the land.
3: A person actually using only part of a rating unit of land to which this section applies during a financial year must be treated as having used the whole of the rating unit for the whole of the financial year unless the person establishes otherwise.
4: The rates assessment and rates invoice must be delivered to the person actually using the land to which this section applies.
5: This section overrides sections 44 46 Section 62A inserted 13 April 2021 section 33 Local Government (Rating of Whenua Māori) Amendment Act 2021 Legal proceedings to recover rates
63: Legal proceedings to recover rates
1: A local authority may commence proceedings in a court of competent jurisdiction to recover as a debt rates unpaid for 4 months after the due date for payment.
2: In any proceedings under subsection (1), the local authority may recover any other unpaid rates in respect of the same rating unit or separate rating area
3: A court constituted under the District Court Act 2016 1988 No 97 ss 137, 143(3) Section 63(2) amended 1 July 2021 section 34 Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 63(3) amended 1 March 2017 section 261 District Court Act 2016
64: Service of summons
1: If a ratepayer who is liable for unpaid rates is absent from New Zealand, but has an agent or attorney in New Zealand, it is sufficient to serve a summons on his or her agent or attorney.
2: A summons may be served by public notice if the ratepayer liable for the rates—
a: is unknown or absent from New Zealand or cannot be found after due inquiry; and
b: has no known agent or attorney in New Zealand.
3: A court of competent jurisdiction may give judgment against the ratepayer—
a: by name; or
b: under the designation of the ratepayer of the land
4: Subsection (3)(b) does not apply unless the court is satisfied that—
a: the ratepayer is unknown, absent, or cannot be found after due inquiry; and
b: the summons has been served by public notice under subsection (2).
5: The cost of publicly notifying the summons may be added to the unpaid rates. 1988 No 97 ss 140, 141
65: Limitation of time for recovery of rates
1: An action to recover unpaid rates must not be commenced in a court of competent jurisdiction later than 6 years after—
a: the date on which the rates became due if the local authority required the rates to be paid in 1 payment in a financial year; or
b: the date on which the last payment became due if the local authority required the rates to be paid in a number of payments in a financial year.
2: If the local authority postpones the requirement to pay rates in whole or in part and the postponed rates are not subsequently written off, an action to recover unpaid postponed rates must not be commenced in a court of competent jurisdiction later than 6 years after the date or event to which the rates were postponed.
3: This section applies to rates set and assessed under this Act or made and levied under the Rating Powers Act 1988. 1988 No 97 s 142
65A: Recovery of unpaid rates from person actually using certain land
In proceedings under section 63 section 62A 96
a: considers it to be reasonable to do so in the circumstances; and
b: is satisfied that—
i: the person did not actually use the whole of the rating unit for which the rates are claimed for the relevant financial year; and
ii: the amount of rates payable is disproportionately large compared to a reasonable rental or payment for the use. Section 65A inserted 13 April 2021 section 35 Local Government (Rating of Whenua Māori) Amendment Act 2021
66: Registration of charging order for judgment for rates
1: Despite rule 17.52 rule 17.41 17.42 rule 17.48 rule 17.51
2: The Limitation Act 2010
3: If a charging order for a judgment for rates is registered against a rating unit, the ratepayer must not register a dealing against the unit without the consent of the local authority.
4: This section applies to a charging order made under this Act or under the Rating Powers Act 1988
5: This section and sections 67 to 83 1988 No 97 s 143(1), (2) Section 66(1) replaced 18 October 2016 section 183(c) Senior Courts Act 2016 Section 66(2) amended 1 January 2011 section 58 Limitation Act 2010 Rating sales and leases
67: Enforcement of judgment
1: If payment is not made to satisfy a judgment for rates (including any costs, interest, and disbursements) within 3 months after the date of the judgment, the local authority may apply, in accordance with subsection (2), to the Registrar of the High Court to have the judgment enforced by sale or lease of the rating unit.
2: The local authority must forward to the Registrar—
a: a certificate, signed and dated by the chief executive officer
i: the date of the judgment:
ii: the amount of the judgment given against the ratepayer or other person:
iii: the name of the ratepayer or other person:
iv: the address of the rating unit that is subject to the judgment and its legal description and location; and
b: the fee as fixed by regulations made under section 156
c: evidence that the land is not land described in section 62A(1)(a) and (b)
3: Subsection (1) does not apply to—
a: land that is subject to enactments that prohibit the alienation or transfer of that land; or
b: land described in section 62A(1)
4: However, the local authority may, in respect of land described in subsection (3)(a),
a: offer that land, or part of it, for lease under this section on terms that produce a yearly rent equivalent to the amount of rates payable on the whole of the land, together with 5% added for the recovery of expenses; or
b: if the ratepayer has an estate or interest in other land that is not subject to an enactment of the kind referred to in subsection (3), register a charging order on, and transfer the power to sell, that other land, or part of it, to produce the amount required to recover the unpaid rates, together with 5% added for the recovery of expenses.
5: Despite any other enactment, in the case of land that requires the consent of a Minister of the Crown before it may be leased, consent is not required for a lease under this section. 1988 No 97 s 144(1) Section 67(2)(a) amended 7 July 2004 section 6 Local Government (Rating) Amendment Act 2004 Section 67(2)(b) amended 1 March 2017 section 183(b) Senior Courts Act 2016 Section 67(2)(c) inserted 13 April 2021 section 36(1) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 67(3) replaced 13 April 2021 section 36(2) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 67(4) amended 13 April 2021 section 36(3) Local Government (Rating of Whenua Māori) Amendment Act 2021
68: Rating sale or lease
1: As soon as possible after receiving the certificate and fee required under section 67
2: The notice required under subsection (1) must state that the rating unit—
a: is subject to a judgment for unpaid rates; and
b: will be sold or leased unless, within 6 months after the date of the notice, payments are made to the High Court of—
i: the amount of the judgment and costs; and
ii: interest fixed by the local authority on the amount of the judgment and costs; and
iii: all rates due on the unit up to the date of payment; and
iv: the Registrar’s charges. 1988 No 97 s 144(2)
69: Service of notice
The notice required under section 68
a: by personal service:
b: by being left at, or posted to, the usual address of the person receiving the notice:
c: if the person receiving the notice is absent from New Zealand, but has an agent or attorney in New Zealand, by being served on the agent or attorney:
d: if the usual address of the person receiving the notice is unknown, by being publicly notified. 1988 No 97 s 144(3)
70: Rating unit may be sold or leased
1: If all the amounts set out in section 68(2)(b) sections 71 to 74
2: The Registrar may charge a fee for the sale or lease of the rating unit that is fixed by regulations made under section 156
3: The Registrar may charge the fee, and require the fee to be paid, before the work required of the Registrar in effecting the sale or lease is begun. 1988 No 97 s 144(4)–(6) Section 70(2) amended 1 March 2017 section 183(b) Senior Courts Act 2016 Section 70(3) inserted 1 March 2017 section 4 Local Government (Rating) Amendment Act 2016
71: How rating sale or lease must be conducted
1: A sale or lease to which section 70(1)
2: Without limiting the powers of the Registrar, the Registrar may—
a: place a reserve on the rating unit; or
b: refuse any tender; or
c: bid for and buy the unit at the auction; or
d: put the unit up for sale or lease as often as may be required until it is sold or leased.
3: The purchaser or the lessee of the rating unit is the highest bidder at the auction or the highest tenderer, as the case may be, if—
a: the bid equals or exceeds the amount required to pay the unpaid rates and the costs incurred; and
b: the highest bidder or tenderer has complied with all conditions precedent (if any) that are set by the Registrar.
4: Subsection (3) is subject to any rights reserved by the Registrar under subsection (2). 1988 No 97 s 146(1)(a), (c)
72: Further powers and duties of Registrar
1: Despite section 71
2: The Registrar must fix the term of a lease under this section, the total term of which (including any renewals) must not exceed 14 years.
3: The Registrar may include covenants and conditions that he or she considers are fair and equitable. 1988 No 97 s 146(1)(a), (d), (e)
73: Execution of documents for rating sale or lease
1: In the case of a sale made under section 71 section 72
a: execute, under the seal of the High Court, a memorandum of transfer on behalf of the ratepayer whose interest has been sold; and
b: note on the transfer that the rating unit has been sold under this Act.
2: In the case of a lease made under section 71 section 72
a: execute the lease, under the seal of the High Court, on behalf of the ratepayer whose interest has been leased; and
b: note on the lease that the rating unit has been leased under this Act.
3: When the transfer or lease has been executed, the purchaser or lessee, as the case may be, is entitled to obtain possession of the rating unit purchased or leased. 1988 No 97 s 146(1)(g), (h)
74: Presumption of valid rating sale or lease
1: A rating sale or lease made under this Act is valid for all purposes, even if there has been an irregularity in the conduct of the sale or lease.
2: No purchaser or lessee is obliged to inquire whether the sale or lease was properly conducted. 1988 No 97 s 146(1)(i)
75: Application of proceeds of rating sale or lease
The proceeds of a sale or lease under section 71 section 72
a: the Registrar’s fee (unless the fee has already been paid)
b: the judgment, and any interest, costs, and disbursements:
c: any other unsatisfied judgment for rates for the same rating unit, with any interest, costs, and disbursements:
d: any other rates due at the date of the sale or lease of the same rating unit, whether or not those rates are still recoverable under section 65
e: any encumbrance on the rating unit:
f: any other unsatisfied judgment for rates on other rating units in the district (if the person against whom the judgment is entered is the ratepayer of other rating units), with any interest, costs, and disbursements:
g: any other rates due at the date of the sale or lease for other rating units owned by that person, whether or not the other rates are outside the period of limitation specified in section 65 1988 No 97 s 145(a)–(g) Section 75(a) amended 1 March 2017 section 5 Local Government (Rating) Amendment Act 2016 Section 75(d) amended 7 July 2004 section 7(1) Local Government (Rating) Amendment Act 2004 Section 75(g) amended 7 July 2004 section 7(2) Local Government (Rating) Amendment Act 2004 Legal proceedings to recover unpaid levies with unpaid rates Heading inserted 7 August 2020 section 161 Infrastructure Funding and Financing Act 2020
75A: Unpaid levy under Infrastructure Funding and Financing Act 2020
1: This section applies if rates and a levy remain unpaid 4 months after the due date for payment.
2: Sections 62A section 75
a: as if any reference in those sections to—
i: the local authority included a reference to the responsible levy authority; and
ii: rates included a reference to a levy; and
iii: a ratepayer included a reference to a levypayer; and
b: with all other necessary modifications.
3: Section 75B section 75
4: In this section and section 75B levy levy order levypayer responsible levy authority section 7 Section 75A inserted 7 August 2020 section 161 Infrastructure Funding and Financing Act 2020 Section 75A(2) amended 13 April 2021 section 37 Local Government (Rating of Whenua Māori) Amendment Act 2021
75B: Application of proceeds of rating sale or lease that involves levy
1: The proceeds of a sale or lease under section 70 71
a: the Registrar’s fee (unless the fee has already been paid):
b: the judgment, and any interest, costs, and disbursements:
c: any other unsatisfied judgment for rates for the same rating unit, with any interest, costs, and disbursements:
d: any other unsatisfied judgment for a levy for the same rating unit, with any interest, costs, and disbursements:
e: any other rates due at the date of the sale or lease of the same rating unit, whether or not those rates are still recoverable under section 65
f: any other levy due at the date of the sale or lease of the same rating unit, whether or not that levy is still recoverable under section 65
g: any encumbrance on the rating unit:
h: any other unsatisfied judgment for rates on other rating units in the district (if the person against whom the judgment is entered is the ratepayer of other rating units), with any interest, costs, and disbursements:
i: any other unsatisfied judgment for a levy on other rating units in the district (if the person against whom the judgment is entered is the levypayer of other rating units), with any interest, costs, and disbursements:
j: any other rates due at the date of the sale or lease for other rating units owned by that person, whether or not the other rates are outside the period of limitation specified in section 65
k: any other levy due at the date of the sale or lease for other rating units owned by that person, whether or not the other levy is outside the period of limitation specified in section 65
2: For the purposes of subsection (1)(f), if levies are imposed under more than 1 levy order under the Infrastructure Funding and Financing Act 2020 Section 75B inserted 7 August 2020 section 161 Infrastructure Funding and Financing Act 2020
76: Application of balance of proceeds
1: After the proceeds of a rating sale have been applied under section 75
2: Public Trust, on the order of the High Court (which may be made by motion in Chambers), must pay the balance to those persons who are entitled to it, together with interest.
3: After the proceeds of a lease have been applied under section 75
a: notify that person that he or she is entitled to collect and receive the rent; and
b: notify the lessee to that effect; and
c: cease collecting the rent. 1988 No 97 ss 145, 146(1)(f) Abandoned land
77: Sale or lease of abandoned land
1: In this section and sections 78 to 81 abandoned land
a: is unknown; or
b: cannot be found after due inquiry and has no known agent in New Zealand; or
c: is deceased and has no personal representative; or
d: has given notice to the local authority that he or she intends to abandon or has abandoned the land.
2: A local authority may, at any time, give public notice in the locality of the land that the local authority intends—
a: to have the land declared abandoned 1 month after the date of the notice; and
b: to sell or lease the land.
3: One month after the date of the public notice, the local authority may apply to the District Court nearest to where the land is situated for an order that—
a: declares the land to be abandoned; and
b: authorises the local authority to sell or lease the land.
3A: The application must include evidence that the land is not land described in section 62A(1)(a) and (b)
4: The District Court may direct the local authority to give notice of the application to any persons, as it thinks fit, in addition to the rules for service under the District Court Rules.
5: The local authority may, in its discretion, proceed under section 67
6: For the purposes of this section, due inquiry 1988 No 97 s 147(1)–(4), (12) Section 77(3A) inserted 13 April 2021 section 38 Local Government (Rating of Whenua Māori) Amendment Act 2021
78: Court may order sale or lease of abandoned land
If the District Court is satisfied that section 77 and the land is not land described in section 62A(1)
a: declare the land to be abandoned; and
b: authorise the local authority to sell or lease the land under sections 79 to 83 1988 No 97 s 147(5) Section 78 amended 13 April 2021 section 39 Local Government (Rating of Whenua Māori) Amendment Act 2021
79: Conduct of sale or lease of abandoned land
1: A sale or lease of abandoned land must be by public auction or public tender.
2: A sale or lease is subject to any terms or conditions that the local authority thinks appropriate, but it must place a reserve on the land.
3: Without limiting the powers of the local authority, the local authority may—
a: refuse any tender; or
b: put the abandoned land up for sale or lease as often as may be required until it is sold or leased.
4: If the abandoned land is not sold or leased at public auction or by public tender, the local authority may sell or lease the land by private treaty for any consideration that is not less than the reserve.
5: The local authority may bid for the abandoned land at any public auction of it and may buy the land, but the local authority must not bid less than the reserve price. 1988 No 97 s 147(6)
80: Execution of documents for abandoned land
1: In the case of a sale under section 79
a: execute, under seal, a memorandum of transfer on behalf of the ratepayer whose interest has been sold; and
b: note on the transfer that the land has been sold under this Act.
2: In the case of a lease under section 79
a: execute, under seal, the lease on behalf of the ratepayer whose interest has been leased; and
b: note on the lease that the land has been leased under this Act.
3: If the local authority purchases the abandoned land, the Registrar of the District Court must—
a: execute, under the seal of the District Court, a memorandum of transfer on behalf of the ratepayer whose interest has been sold; and
b: note on the transfer that the land has been sold under this Act.
4: When the transfer or lease has been executed, the purchaser or lessee, as the case may be, is entitled to obtain possession, from any other person, of the abandoned land purchased or leased. 1988 No 97 s 147(7), (8), (9)
81: Presumption that sale or lease valid
1: A sale or lease of abandoned land made under this Act is valid for all purposes, even if there has been an irregularity in the conduct of the sale or lease.
2: No purchaser or lessee is obliged to inquire whether the sale or purchase was properly conducted. 1988 No 97 s 147(7)
82: Application of proceeds of sale or lease
1: Sections 75 76 section 79
2: For the purposes of this section, expenses
3: If the proceeds of a sale or lease of abandoned land under section 79 1988 No 97 s 147(11), (12)
83: Registration of instruments
An instrument executed under section 73 80 Land Transfer Act 2017 Section 83 replaced 12 November 2018 section 250 Land Transfer Act 2017
83A: Unpaid levy under Infrastructure Funding and Financing Act 2020
1: This section applies if the abandoned land is a rating unit for which a levy as well as rates have not been paid for 3 years or more.
2: Sections 77 to 83 section 82
a: as if any reference in those sections to—
i: the local authority included a reference to the responsible levy authority; and
ii: rates included a reference to a levy; and
iii: a ratepayer included a reference to a levypayer; and
b: with all other necessary modifications.
3: Section 83B section 82
4: In this section and section 83B levy levypayer responsible levy authority section 7 Section 83A inserted 7 August 2020 section 161 Infrastructure Funding and Financing Act 2020
83B: Application of proceeds of sale or lease
1: Sections 75B 76 section 83A
2: For the purposes of this section, expenses
3: If the proceeds of the sale or lease are not sufficient to meet the rates, levy, interest, costs, and expenses, the responsible levy authority may write off the deficiency. Section 83B inserted 7 August 2020 section 161 Infrastructure Funding and Financing Act 2020 Crown land
84: Crown land held on lease or licence
1: This section applies to a lessee or licensee described in section 11(2)
2: The interest of a lessee or licensee in Crown land held under the Land Act 1948 section 111 1988 No 97 s 150
2: Remission
, postponement, and write-off Part 3 subpart 2 heading amended 13 April 2021 section 40 Local Government (Rating of Whenua Māori) Amendment Act 2021 Remission of rates
85: Remission of rates
1: A local authority may remit all or part of the rates on a rating unit (including penalties for unpaid rates) if—
a: the local authority has adopted a rates remission policy under section 109
b: the local authority is satisfied that the conditions and criteria in the policy are met.
2: The local authority must give notice to the ratepayer identifying the remitted rates. 1988 No 97 Parts 12, 12A, 12B Section 85(1)(a) amended 1 July 2003 section 262 Local Government Act 2002
86: Recording remitted rates
The local authority must record the remitted rates—
a: on the rates record for the rating unit as paid on the due date; and
b: in accounting documents 1988 No 97 Parts 12, 12A, 12B Section 86(b) amended 1 July 2003 section 262 Local Government Act 2002 Postponement of requirement to pay rates
87: Postponement of requirement to pay rates
1: A local authority must postpone the requirement to pay all or part of the rates on a rating unit (including penalties for unpaid rates) if—
a: the local authority has adopted a rates postponement policy under section 110
b: the ratepayer has applied in writing for a postponement; and
c: the local authority is satisfied that the conditions and criteria in the policy are met.
2: The local authority must give notice to the ratepayer—
a: identifying the postponed rates; and
b: stating when, or in which circumstances, the rates will become payable. 1988 No 97 Parts 12, 12A, 12B Section 87(1)(a) substituted 1 July 2003 section 262 Local Government Act 2002
88: Postponement fee may be added to postponed rates
1: A local authority may, in accordance with its postponement policy, add a postponement fee to the postponed rates for the period between the due date and the date that they are paid.
2: A postponement fee must not exceed the administrative and financial costs to the local authority of the postponement.
3: A postponement fee must be treated, for all purposes, as part of the rates on a rating unit. 1988 No 97 Parts 12, 12A, 12B
89: Recording postponed rates
1: Subsection (2) applies if—
a: a postponement fee is not added to the postponed rates; or
b: a postponement fee is added to the postponed rates that is less than the maximum set out in section 88(2)
2: The local authority must record the net cost of a postponement in accounting documents 1988 No 97 Parts 12, 12A, 12B Section 89(2) amended 1 July 2003 section 262 Local Government Act 2002
90: Postponed rates may be registered as charge on rating unit
1: A local authority may register a notice of charge on a rating unit if the local authority has postponed the requirement to pay rates for the rating unit under section 87(1)
2: If subsection (1) applies,—
a: a charge on the rating unit is created for the amount owing from time to time to the local authority under section 87(2)
b: except with the consent of the local authority, the Registrar must not register any dealing by the owner of the rating unit, of the land comprising the rating unit.
3: A notice of charge must—
a: be signed by the chief executive of the local authority; and
b: identify—
i: the rating unit (for example, by its street address or rates record identifier); and
ii: the land comprising the rating unit; and
iii: the owner of the rating unit; and
c: give a summary of how the amount of the charge is determined under section 87(2)
4: A local authority must register a notice of release of charge if all postponed rates for a rating unit are paid.
5: A notice of release of charge must—
a: be signed by the chief executive officer of the local authority; and
b: identify the notice of charge to which it relates.
6: For the purposes of subsection (3)(b)(ii), the land comprising a rating unit is sufficiently identified—
a: in the case of land for which there is a record of title section 5A section 5C(7) record of title
b: in any other case, by a description adequate for the purposes of this section which may include a plan.
7: For the purposes of this section, Registrar Section 90 substituted 7 July 2004 section 8 Local Government (Rating) Amendment Act 2004 Section 90(6)(a) amended 12 November 2018 section 250 Land Transfer Act 2017 Power of chief executive to write off rates Heading inserted 13 April 2021 section 41 Local Government (Rating of Whenua Māori) Amendment Act 2021
90A: Chief executive may write off rates that cannot be recovered
1: The chief executive of a local authority must write off any outstanding rates that, in the chief executive’s opinion, cannot reasonably be recovered.
2: The chief executive may write off rates under subsection (1) on—
a: the chief executive’s own initiative; or
b: the application of a ratepayer (who may make an application at any time).
3: The chief executive must—
a: notify a ratepayer of any write-off of the ratepayer’s rates under this section; and
b: within 30 days of receiving an application under subsection (2)(b), provide written reasons to the applicant of the reasons for the decision to write off, or not to write off, the rates specified in the application. Section 90A inserted 13 April 2021 section 41 Local Government (Rating of Whenua Māori) Amendment Act 2021
90B: Chief executive may write off rates of deceased owners of Māori freehold land
1: The chief executive of a local authority may, in respect of a rating unit of Māori freehold land, write off all or part of the outstanding rates that—
a: are payable by a person beneficially entitled to a deceased owner’s beneficial interest in the land; and
b: were payable by the deceased owner at the death of the owner.
2: The local authority must give notice to the ratepayer of any write-off. Section 90B inserted 13 April 2021 section 41 Local Government (Rating of Whenua Māori) Amendment Act 2021
90C: Chief executive may delegate power to write off rates
1: The chief executive of a local authority may delegate the exercise of the powers under sections 90A 90B
2: The chief executive must not delegate the power to delegate under this section. Section 90C inserted 13 April 2021 section 41 Local Government (Rating of Whenua Māori) Amendment Act 2021
90D: Amount of rates written off to be included in notes to financial statements
A local authority must ensure that the notes to the financial statements described in clause 29(1)(a) sections 90A 90B Section 90D inserted 13 April 2021 section 41 Local Government (Rating of Whenua Māori) Amendment Act 2021
4: Rating of Māori freehold land
91: Liability of Māori freehold land for rates
Except where this Part otherwise provides, Māori freehold land is liable for rates in the same manner as if it were general land. District valuation rolls
92: Recording name of ratepayer
1: If Māori freehold land is owned legally and beneficially by 1 or 2 owners, the names of the owners must be entered as ratepayers in the rating information database and the district valuation roll.
2: If an entire rating unit that comprises Māori freehold land in multiple ownership is leased, the name of the lessee must be entered as the ratepayer in the rating information database and the district valuation roll, unless the lessor advises the local authority, or the lessee produces proof, that the lease provides for the lessor to be liable to pay the rates.
3: If an entire rating unit that comprises Māori freehold land in multiple ownership is subject to an occupation order made by the Māori Land Court under section 328
4: If subsection (2) or subsection (3) do not apply, the following names or descriptions must be entered as ratepayers in the rating information database and the district valuation roll:
a: for Māori freehold land owned by more than 2 persons who are not trustees, the words the owners
b: for Māori freehold land vested in trustees, the names and designations of the trustees.
4A: If a separate rating area is divided from a rating unit under section 98A
5: For the purposes of this Part,— lease trustee Part 13
6: Subsection (1) is subject to section 11
7: Subsections (2), (3), (4), and (4A) section 11 Section 92(4A) inserted 1 July 2021 section 42(1) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 92(7) amended 1 July 2021 section 42(2) Local Government (Rating of Whenua Māori) Amendment Act 2021 Land vested in trustees
93: Limitation on trustee liability
1: If trustees are liable to pay the rates on rateable Māori freehold land,—
a: the rates must be paid out of income derived from the land and received by the trustees for the beneficial owners of the land; and
b: the trustees are liable for rates only to the extent of the money derived from the land and received by the trustees on behalf of the beneficial owner or owners.
2: Trustees seeking to rely on section 93(1)(b) 1988 No 97 s 184 Section 93(2) inserted 1 July 2021 section 43 Local Government (Rating of Whenua Māori) Amendment Act 2021 Māori freehold land in multiple ownership
94: Appointment of person to receive notices
1: Unless section 92(2)
2: Unless it would be unreasonable or impracticable to do so, the Māori Land Court, on application by the local authority, must appoint one of the owners, or an agent of the owners, to receive rates assessments and rates invoices for Māori freehold land in multiple ownership.
3: The name of the owner or agent appointed under subsection (2) must be entered as the ratepayer in the rating information database and the district valuation roll, followed by the words (court appointee) 1988 No 97 s 183
95: Effect of appointment of owner or agent
1: An appointment of an owner or agent under section 94(2)
2: The entry of the name of an owner or agent appointed under section 94
3: If there has been an appointment under section 94(2) section 44
4: The delivery of a rates assessment under section 44 1988 No 97 s 183(1)–(7) Person actually using Māori freehold land in multiple ownership or separate rating areas Heading replaced 1 July 2021 section 44 Local Government (Rating of Whenua Māori) Amendment Act 2021
96: Person actually using land liable for rates
1: A person actually using land is liable for the rates on that land if the land is Māori freehold land—
a: in a rating unit in multiple ownership that is not vested in a trustee; or
b: in a separate rating area.
2:
3: If there is a person actually using the land, subsection (1) applies whether or not—
a: the person actually using the land is one of the owners of the land; or
b: a person has also been appointed under section 94(2)
4: This section overrides section 12 1988 No 97 s 185(1), (4) Section 96(1) replaced 1 July 2021 section 45(1) Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 96(2) repealed 1 July 2021 section 45(2) Local Government (Rating of Whenua Māori) Amendment Act 2021
97: Rates assessment delivered to person actually using land
1: If section 96
2: A person who is actually using land described in section 96(1)(a)
3: This section overrides sections 44 46 1988 No 97 s 185(1)–(4) Section 97(2) amended 1 July 2021 section 46 Local Government (Rating of Whenua Māori) Amendment Act 2021
98: Ratepayer of underlying rating unit not liable for rates on separate rating area
1: The ratepayer for a rating unit is not liable for any rates due on any separate rating area in the rating unit.
2: Sections 99 to 113 Section 98 replaced 1 July 2021 section 47 Local Government (Rating of Whenua Māori) Amendment Act 2021 Separate rating areas on Māori freehold land Heading inserted 1 July 2021 section 48 Local Government (Rating of Whenua Māori) Amendment Act 2021
98A: How rating unit on Māori freehold land divided into separate rating areas
1: A local authority may divide a separate rating area from a rating unit on Māori freehold land on the request of a person in accordance with this section.
2: A local authority must determine a part of a rating unit to be a separate rating area if the identified part of the rating unit—
a: comprises a dwelling; and
b: is used separately from the other land in the rating unit.
3: If the rating unit is managed by a trustee, the request for a separate rating area—
a: must be made by the trustee with the consent of the person actually using the identified part of the rating unit; and
b: must include the full name and postal address of the person actually using the identified part of the rating unit and evidence that they consent to the request.
4: If the rating unit is not managed by a trustee, the request for a separate rating area may be made by the person actually using the identified part of the rating unit.
5: On receiving a request under subsection (4), a local authority must notify the ratepayer or ratepayers for the rating unit of the request.
6: Requests for separate rating areas may be made at any time during the financial year.
7: The division of a separate rating area from a rating unit under this section does not create any right of occupancy or interest in the land. Section 98A inserted 1 July 2021 section 48 Local Government (Rating of Whenua Māori) Amendment Act 2021
98B: Apportionment of rates for separate rating areas
The local authority must apportion the rates assessed for the underlying rating unit between each separate rating area and any residual rating area in the unit as follows:
a: the apportionment of any rate must be assessed in accordance with the same values and factors that were used to assess the total rates for the underlying rating unit under section 43
b: any general rate must be apportioned between separate rating areas and any residual rating area by apportioning the rateable valuation of the underlying rating unit between each separate rating area and any residual rating area, but always using the same category of rateable land under section 14
c: any uniform annual general charge set under section 15(1)(a)
d: any uniform annual general charge set under section 15(1)(b) see clauses 15 20
e: any targeted rate must be apportioned between each separate rating area and any residual rating area in the underlying rating unit by apportioning the factors under section 18 section 17
f: to avoid doubt, the sum of the apportionments of all rates for the separate rating areas and any residual rating area must equal the sum of all rates that would apply to the underlying rating unit without apportionment. Section 98B inserted 1 July 2021 section 48 Local Government (Rating of Whenua Māori) Amendment Act 2021
98C: Contents of rates assessment for separate rating area
1: A rates assessment for a separate rating area must clearly identify all of the following:
a: the name and address of the local authority:
b: the name and address of the ratepayer:
c: the number on the district valuation roll of the underlying rating unit:
d: the legal description of the underlying rating unit:
e: the location of the separate rating area:
f: the rateable value of the separate rating area:
g: the amount and description of each rate:
h: the activities or groups of activities of the local authority that will be funded from each rate:
i: the relevant matters in Schedule 2
i: the category (if any) to which the separate rating area belongs for the purposes of setting general rates differentially under section 13(2)(b)
ii: the category (if any) to which the separate rating area belongs for the purposes of setting a targeted rate under section 16(3)(b) or (4)(b)
j: the information on the factors used to calculate the amount of the liability of the separate rating area in respect of each targeted rate:
k: the total amount of rates payable on the separate rating area for the financial year:
l: the information set out in section 45(1)(l) to (p)
2: If the ratepayer has elected to make a lump sum contribution to a local authority’s capital project, the rates assessment must also identify the target rates for the financial year for which, as a result of the election, no liability attaches to the separate rating area. Section 98C inserted 1 July 2021 section 48 Local Government (Rating of Whenua Māori) Amendment Act 2021
98D: When separate rating area divided from rating area
1: A determination by a local authority that a part of a rating unit is a separate rating area applies on and from the commencement of—
a: the financial year following the financial year in which the request for the determination is made; or
b: if the requestor and the local authority agree, the financial year in which the request is made.
2: Subsection (3) applies if, before a rating unit is divided or ceases to be divided into separate rating areas for a financial year, a local authority has sent a notice, a ratepayer has made a payment, or either has done anything else that affects who is liable for rates (or apportionments of rates) under this Act for that financial year.
3: The local authority may do anything required to adjust who is liable for rates (or apportionments of rates), and anything required to adjust any related matters, under this Act for that financial year to reflect the division or removal of the division. Section 98D inserted 1 July 2021 section 48 Local Government (Rating of Whenua Māori) Amendment Act 2021
98E: How separate rating area ceases to be a separate rating area
1: A local authority may determine that a separate rating area divided from a rating unit is no longer a separate rating area—
a: on the request of the trustee of the rating unit; or
b: if the rating unit is not managed by a trustee, on the request of the person actually using the separate rating area; or
c: on its own initiative if—
i: the dwelling on the separate rating area has been removed or demolished, or is no longer habitable; or
ii: there is no person actually using the separate rating area.
2: A determination by a local authority that a separate rating area is no longer a separate rating area applies on and from the commencement of—
a: the financial year following the financial year in which an application is made by the trustee of the underlying rating unit:
b: if the trustee and the local authority agree, the financial year in which the request is made:
c: if the local authority makes the determination on its own initiative, the financial year following the financial year in which the determination is made.
3: The local authority must write off any rates outstanding in respect of a separate rating area when the local authority ceases to apportion the rates between separate rating areas under subsection (2). Section 98E inserted 1 July 2021 section 48 Local Government (Rating of Whenua Māori) Amendment Act 2021
98F: Election to make lump sum contributions must be made on behalf of underlying rating unit
If Part 4A Section 98F inserted 1 July 2021 section 48 Local Government (Rating of Whenua Māori) Amendment Act 2021 Charging orders
99: Application for charging order
1: If the rates payable on rateable Māori freehold land are unpaid 6 months after the due date, the local authority may apply to the Māori Land Court for an order charging the unpaid rates against the land.
2: No application under subsection (1) may be made for an order charging a sum of less than $50.
3: An application under subsection (1) may not be made later than 6 years after the date on which—
a: the rates became due in that financial year in the case of rates payable in 1 payment in a financial year; or
b: the last payment of rates became due in that financial year in the case of rates payable by more than 1 payment in a financial year.
4: Section 82 1988 No 97 s 186(1), (2)
100: Matters that must be taken into account by Māori Land Court
1: In a hearing by the Māori Land Court of an application made under section 99
a: the area and location of Māori freehold land in respect of which rates are unpaid; and
b: the name of any person actually using all or part of the rating unit during the period that the rates were unpaid; and
c: whether that person has an interest in the land; and
d: the purpose for which that person used the land during the period the rates were unpaid; and
e: if the land is vested in trustees, whether all reasonable steps have been taken by the local authority to obtain payment of the rates from the trustees; and
f: details of the value of the land as appearing in the latest district valuation roll made under the Rating Valuations Act 1998
g: the names and addresses of the persons to whom rates assessments for the land have been delivered at any time during the period for which the rates were assessed; and
h: all objections to the rates; and
i: the objectives set out in section 17(1)
2: Any defence that is available to a ratepayer is open to the owners of the land or their representatives. 1988 No 97 s 186(3), (4)
101: Powers of Māori Land Court to make charging order
1: If the Māori Land Court is satisfied, after hearing an application made under section 99
2: Despite subsection (1), the court must not make an order unless it is satisfied,—
a: if the land is vested in trustees, that all reasonable steps have been taken by the local authority to obtain payment of the rates from the trustees; or
b: if a person is liable to pay the rates because section 96
i: the local authority has taken proceedings against that person to recover judgment for all or some of the rates and has been unable to recover the amount of the judgment; or
ii: having regard to all the circumstances of the case, those proceedings are unlikely to result in the rates being recovered.
3: Subsection (2) does not override section 108 1988 No 97 s 186(4A), (5)
102: Charging order must be registered
A charging order made by the Māori Land Court under section 101(1) section 123 section 124
103: Charging order in favour of owner paying rates
1: An owner of Māori freehold land in multiple ownership who has paid the rates on that land may apply to the Māori Land Court for a charging order against the land for the excess amount of rates paid by that owner.
2: In this section, excess amount
3: The Māori Land Court may make a charging order in favour of that owner for the excess amount if the court is satisfied that the amount paid by the owner is an excess amount.
4: Despite subsections (1) to (3), the court must not make an order unless it is satisfied,—
a: if the land is vested in trustees, that all reasonable steps have been taken by the local authority to obtain payment of the rates from the trustees; or
b: if a person is liable to pay the rates because section 96
i: the local authority has taken proceedings against that person to recover judgment for the amount of the rates, or an appropriate portion of the rates, and has been unable to recover the amount of the judgment; or
ii: having regard to all the circumstances of the case, those proceedings are unlikely to result in the rates being recovered.
5: Subsection (1) does not apply to an owner who is actually using the land, as defined in section 96 1988 No 97 s 187 Effect of charging orders
104: Effect of charging order
If a charging order is made under section 101
a: with the consent of the local authority; or
b: with the leave of the Māori Land Court. 1988 No 97 s 186(7)
105: Charging order in force until discharged
1: A charging order made against Māori freehold land under section 101
2: Subsection (1) does not override section 113 the Limitation Act 2010 1988 No 97 s 186(8) Section 105(2) amended 1 January 2011 section 58 Limitation Act 2010
106: Consolidation of charging orders
The Māori Land Court may consolidate more than 1 order against the same land into 1 order for the total amount of rates due and discharge previous charging orders. 1988 No 97 s 186(10)
107: Charging order apportioned if land partitioned
1: If a rating unit subject to a charging order made under section 101
2: Despite subsection (1), the Māori Land Court, in its discretion, may make an order that apportions the charge in any other manner that it considers fair and equitable. 1988 No 97 s 186(11) Enforcement of charging orders
108: Māori Land Court may enforce charging order
1: If a charging order made under section 101
2: If the Māori Land Court is satisfied that it would not be contrary to the interests of the owners to do so, it must, without further application, enforce the charging order by—
a: appointing a receiver under section 83
b: constituting an ahu whenua trust under section 215
3: The Māori Land Court must not make an order under subsection (2) unless it has first—
a: considered whether the land is capable of producing an income that would enable the payment of rates on the land in the future; and
b: heard evidence and submissions put forward by any owners of the land and by the local authority. 1988 No 97 s 188(1), (2)
109: Scope of order
An order made under section 108(2)
a: must provide for the receiver or trustees, as the case may be, to satisfy the charging order; and
b: may authorise the receiver or trustees, as the case may be, on behalf of the owners, to recover—
i: money from any other person for the past use of the land by that person; or
ii: the amount of rates payable for that land during that person’s use of the land. 1988 No 97 s 188(3)
110: Cancellation of order to enforce charging order
The Māori Land Court must cancel an order made under section 108(2)
a: all outstanding rates have been paid; and
b: proper provision has been made for the payment of future rates. 1988 No 97 s 188(5)
111: Māori Land Court may make order for payment
1: If the Māori Land Court has made a charging order under section 101
2: Before making an order under subsection (1), the court must be satisfied that there is a person liable for the satisfaction of the charging order and must give notice to that person of the application by the local authority for an order for payment under subsection (1).
3: An order made under subsection (1) may require any money that is held in trust for the liable person to be applied in payment of the rates to which the charging order relates. 1988 No 97 s 188(4) Discharge of charging orders
112: Discharge of charging order in full or in part
1: A charging order made under section 101
a: the rates for the land subject to the charging order have been paid; or
b: the rates have been remitted by the local authority under section 85
2: If subsection (1) applies, either—
a: the Māori Land Court must, by order of the court, discharge the charging order; or
b: the local authority must discharge the charging order in writing.
3: If the rates are paid in part or are remitted in part, the Māori Land Court or the local authority, as the case may be, must discharge the charging order in proportion to the amount of the rates paid or the amount for which the rates are remitted. 1988 No 97 s 190(1)
113: Notation and registration of discharge
1: If a discharge of a charging order is granted under section 112
a: if the discharge relates to the full amount of the unpaid rates, as being discharged in full; and
b: if the discharge relates to part of the unpaid rates, as being partially discharged, both as to the amount of the rates remaining unpaid and the portion of the land affected by the charging order.
2: A discharge referred to in section 112 section 123 section 124
3: In the case of a partial discharge, the charging order must be registered only as to the balance of the money and the residue of the land affected. 1988 No 97 s 190(2), (3) Remission, postponement, and exemption of rates
114: Remission of rates
on Māori freehold land generally
1: A local authority may remit all or part of the rates (including penalties for unpaid rates) on Māori freehold land if—
a: its policy on the remission and postponement of rates on Māori freehold land adopted under section 102(1)
b: the local authority is satisfied that the conditions and criteria in the policy are met.
2: Sections 85(2) 86
3: This section does not limit the application of section 85 1988 No 97 s 189 Section 114 heading amended 13 April 2021 section 49 Local Government (Rating of Whenua Māori) Amendment Act 2021 Section 114(1)(a) substituted 1 July 2003 section 262 Local Government Act 2002 Section 114(1)(a) amended 27 November 2010 section 50 Local Government Act 2002 Amendment Act 2010
114A: Remission of rates for Māori freehold land under development
1: The purpose of this section is to facilitate the occupation, development, and utilisation of Māori freehold land for the benefit of its owners.
2: A local authority must consider an application by a ratepayer for a remission of rates on Māori freehold land if—
a: the ratepayer has applied in writing for a remission on the land; and
b: the ratepayer or another person is developing, or intends to develop, the land.
3: The local authority may, for the purpose of this section, remit all or part of the rates (including penalties for unpaid rates) on Māori freehold land if the local authority is satisfied that the development is likely to have any or all of the following benefits:
a: benefits to the district by creating new employment opportunities:
b: benefits to the district by creating new homes:
c: benefits to the council by increasing the council’s rating base in the long term:
d: benefits to Māori in the district by providing support for marae in the district:
e: benefits to the owners by facilitating the occupation, development, and utilisation of the land.
4: The local authority may remit all or part of the rates—
a: for the duration of a development; and
b: differently during different stages of a development; and
c: subject to any conditions specified by the local authority, including conditions relating to—
i: the commencement of the development; or
ii: the completion of the development or any stage of the development.
5: In determining what proportion of the rates to remit during the development or any stage of the development, the local authority must take into account—
a: the expected duration of the development or any stage of the development; and
b: if the land is being developed for a commercial purpose, when the ratepayer or ratepayers are likely to generate income from the development; and
c: if the development involves the building of 1 or more dwellings, when the ratepayer or any other persons are likely to be able to reside in the dwellings.
6: Sections 85(2) 86
7: This section does not limit the application of section 85 114 Section 114A inserted 13 April 2021 section 50 Local Government (Rating of Whenua Māori) Amendment Act 2021
115: Postponement of requirement to pay rates
1: A local authority must postpone the requirement to pay all or part of the rates on Māori freehold land (including penalties for unpaid rates) if—
a: its policy on the remission and postponement of rates on Māori freehold land adopted under section 102(1)
b: the ratepayer has applied in writing for a postponement; and
c: the local authority is satisfied that the conditions and criteria in the policy are met.
2: Sections 87(2) 88 to 90
3: This section does not limit the application of section 87 1988 No 97 s 189 Section 115(1)(a) substituted 1 July 2003 section 262 Local Government Act 2002 Section 115(1)(a) amended 27 November 2010 section 50 Local Government Act 2002 Amendment Act 2010
116: Exemption of Māori freehold land from rates
1: The Governor-General, by Order in Council made on the recommendation of the Māori Land Court and with the consent of the local authority in whose district the land is situated, may exempt Māori freehold land, as specified in the order, from some or all liability for rates.
2: An order made under subsection (1) may, at any time, be varied or cancelled by Order in Council.
3: In determining whether to consent to an order under subsection (1) or whether to seek an order under subsection (2), the local authority must consider—
a: the provisions of the policy on the remission and postponement of rates on Māori freehold land adopted by the local authority under section 102(1)
b: the objectives set out in Schedule 11
4: An order under this section is secondary legislation ( see Part 3 1988 No 97 s 182 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 116(3)(a) substituted 1 July 2003 section 262 Local Government Act 2002 Section 116(3)(a) amended 27 November 2010 section 50 Local Government Act 2002 Amendment Act 2010 Section 116(3)(b) substituted 1 July 2003 section 262 Local Government Act 2002 Section 116(4) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
117: Effect of exemption
1: An order made under section 116
a: apply to specified Māori freehold land or to any specified class of that land; and
b: release the persons liable from liability for rates that were unpaid before the order was made.
2: If an order is made under section 116 1988 No 97 s 182(2)–(4)
4A: Lump sum contributions
Part 4A inserted 28 June 2006 section 10 Local Government (Rating) Amendment Act 2006
117A: Interpretation
In this Part, unless the context otherwise requires,— capital project
a: means a project or work the expenditure for which is not recognised by generally accepted accounting practice as being operating expenditure; and
b: includes a loan in relation to a project or work capital project funding plan funding plan section 117B(3) election section 117H(1) eligible ratepayer invitation section 117F lump sum contribution Section 117A inserted 28 June 2006 section 10 Local Government (Rating) Amendment Act 2006
117B: Local authority may fund capital project by lump sum contributions
1: A local authority may fund, or partially fund, a capital project by lump sum contributions from its ratepayers.
2: Subsection (1) applies if, and only if, the local authority has adopted a capital project funding plan for the capital project.
3: A funding plan must—
a: commence at the start of a financial year; and
b: contain the matters required under section 117E(1)
c: be adopted as part of the local authority’s—
i: annual plan; or
ii: long-term
4: In developing a funding plan, a local authority must give equal weight to the financial interests of those ratepayers who may elect to make a lump sum contribution and those who may decide not to do so.
5: This section is subject to section 117C Section 117B inserted 28 June 2006 section 10 Local Government (Rating) Amendment Act 2006 Section 117B(3)(c)(ii) amended 27 November 2010 section 50 Local Government Act 2002 Amendment Act 2010
117C: Requirement to pay lump sum contribution must not be imposed on ratepayers
No local authority may require a ratepayer to pay a lump sum contribution to a capital project unless—
a: it has invited the ratepayer to do so under section 117F
b: the ratepayer has elected to do so under section 117H Section 117C inserted 28 June 2006 section 10 Local Government (Rating) Amendment Act 2006
117D: Consequences for local authority if capital project funding plan adopted
1: Once a local authority has adopted a capital project funding plan for a capital project,—
a: it must not fund the project in any way other than in accordance with the funding plan; and
b: the proceeds from any targeted rates collected under the funding plan must not be used for any purpose other than the project.
2: Subsection (1) applies subject to any express provisions to the contrary in the invitation for the project. Section 117D inserted 28 June 2006 section 10 Local Government (Rating) Amendment Act 2006 Capital project funding plans Heading inserted 28 June 2006 section 10 Local Government (Rating) Amendment Act 2006
117E: Contents of capital project funding plan
1: A local authority must include the matters set out in Part 1
2: A local authority may include any other matter in a funding plan—
a: that it sees fit; and
b: that is not inconsistent with this Act or any other enactment. Section 117E inserted 28 June 2006 section 10 Local Government (Rating) Amendment Act 2006 Invitations to make lump sum contribution Heading inserted 28 June 2006 section 10 Local Government (Rating) Amendment Act 2006
117F: Invitations to make lump sum contribution
1: For the purposes of section 117B
2: An invitation must—
a: be in writing; and
b: be delivered to each eligible ratepayer not less than 1 month before the date specified in the invitation as being the final date for the ratepayer to elect to make a lump sum contribution; and
c: contain the matters required under section 117G(1)
3: A local authority must not include any term in an invitation that would have the effect of—
a: offering different terms to individual eligible ratepayers, a class of eligible ratepayers, or classes of eligible ratepayers; or
b: inviting lump sum contributions from its eligible ratepayers on terms that are inconsistent with the funding plan for the capital project concerned. Section 117F inserted 28 June 2006 section 10 Local Government (Rating) Amendment Act 2006
117G: Contents of invitation
1: An invitation must—
a: contain all the terms that would apply to the eligible ratepayer if the ratepayer elected to make a lump sum contribution in respect of the rating unit; and
b: include any other information that the local authority considers necessary to enable the eligible ratepayer to make an informed choice about making a lump sum contribution to the project.
2: Without limiting subsection (1), an invitation must include the matters set out in Part 2 Section 117G inserted 28 June 2006 section 10 Local Government (Rating) Amendment Act 2006 Elections to make lump sum contribution Heading inserted 28 June 2006 section 10 Local Government (Rating) Amendment Act 2006
117H: Eligible ratepayer may elect to make lump sum contribution
1: Having received an invitation, an eligible ratepayer may elect to make a lump sum contribution to the capital project concerned in respect of the rating unit concerned.
2: An election must be—
a: in writing; and
b: signed by the ratepayer or an authorised representative of the ratepayer; and
c: returned to the local authority concerned no later than the date specified in the invitation as being the final date for a ratepayer to elect to make a lump sum contribution.
3: A rating unit in respect of which the eligible ratepayer does not elect to make a lump sum contribution will be liable for the targeted rates specified in the invitation that relate to the category of rating unit to which the unit belongs and—
a: that apply to a rating unit in respect of which the ratepayer has not elected to make a lump sum contribution; and
b: that apply to a rating unit whether or not the ratepayer in respect of the rating unit has elected to make a lump sum contribution. Section 117H inserted 28 June 2006 section 10 Local Government (Rating) Amendment Act 2006
117I: Lump sum contribution invoice
1: This section applies to a rating unit in respect of which the eligible ratepayer has elected to make a lump sum contribution to a local authority’s capital project.
2: The local authority must deliver to the ratepayer in respect of the rating unit—
a: an invoice for the full contribution, if the lump sum contribution is to be paid in one amount; or
b: an invoice for each instalment, if the lump sum contribution is to be paid in instalments.
3: An invoice must be delivered to the ratepayer no later than 1 month before the date on which payment is due (being the date specified in the invitation concerned).
4: An invoice—
a: must be a separate document from any rates invoice delivered to the ratepayer; but
b: may be delivered at the same time as the rates invoice. Section 117I inserted 28 June 2006 section 10 Local Government (Rating) Amendment Act 2006
117J: Consequences for eligible ratepayer (and any future ratepayers) of election to make lump sum contribution
1: A rating unit in respect of which the eligible ratepayer has elected to make a lump sum contribution for a capital project is not liable for the targeted rates specified in the invitation concerned as being targeted rates that do not apply to the rating unit.
2: The obligations assumed by an eligible ratepayer who elects to make a lump sum contribution in respect of a rating unit—
a: run with the land; and
b: are binding on every person who is for the time being the ratepayer responsible for the rating unit.
3: Subsection (2) applies until the date that is the later of—
a: the date that the contribution is paid in full; or
b: the date that any recalculation of the contribution is made. Section 117J inserted 28 June 2006 section 10 Local Government (Rating) Amendment Act 2006 Local authority must record certain matters Heading inserted 28 June 2006 section 10 Local Government (Rating) Amendment Act 2006
117K: Local authority must record elections and lump sum contributions in rating information database and rates records
1: A local authority must record the following information in its rating information database for each rating unit in respect of which an eligible ratepayer has elected to make a lump sum contribution:
a: that an election has been made; and
b: that the rating unit is not liable for the targeted rates specified in the invitation concerned as being targeted rates that do not apply to the rating unit.
2: A local authority must record the following information in its rates records for each rating unit in respect of which an eligible ratepayer has elected to make a lump sum contribution:
a: that an election has been made; and
b: the terms of the invitation concerned; and
c: the information relating to due dates and amounts of payment included in any invoice delivered to the ratepayer under section 117I
d: the date and amount of any lump sum contribution payments made in respect of the rating unit. Section 117K inserted 28 June 2006 section 10 Local Government (Rating) Amendment Act 2006 Change of ownership of rating unit Heading inserted 28 June 2006 section 10 Local Government (Rating) Amendment Act 2006
117L: Local authority must notify new ratepayer of liability in respect of rating unit for lump sum contribution
1: This section applies if—
a: a rating unit is liable for a lump sum contribution; and
b: the ratepayer in respect of the rating unit changes because the local authority is notified,—
i: under section 31
ii: under section 32
iii: under section 33
2: A local authority that is notified of a matter described in subsection (1) must notify, in writing, the person who becomes the ratepayer for the rating unit of all the information referred to in section 117K(2)
3: The local authority must also provide to the person a copy of the terms of the election made by the eligible ratepayer as set out in the invitation concerned. Section 117L inserted 28 June 2006 section 10 Local Government (Rating) Amendment Act 2006 Recalculation of lump sum contributions Heading inserted 28 June 2006 section 10 Local Government (Rating) Amendment Act 2006
117M: Recalculation of lump sum contributions
1: A local authority may make 1 recalculation of the lump sum contributions to a capital project.
2: A recalculation must be made in accordance with the factors and methodologies specified in the invitation concerned.
3: A recalculation must not be made until the final cost of the project is known.
4: A local authority must, no later than 1 month after a recalculation,—
a: if the liability from the lump sum contributions decreases, refund the excess to the ratepayer for each rating unit in respect of which a contribution was made; or
b: if the liability from the lump sum contributions increases, deliver an invoice to the ratepayer for each rating unit in respect of which a contribution was made.
5: Any invoice to which subsection (4)(b) applies must specify a due date for payment that is not less than 1 month after the date on which the invoice is delivered. Section 117M inserted 28 June 2006 section 10 Local Government (Rating) Amendment Act 2006 Late payment or non-payment of lump sum contribution Heading inserted 28 June 2006 section 10 Local Government (Rating) Amendment Act 2006
117N: Late payment or non-payment of lump sum contribution
1: This section applies if—
a: an eligible ratepayer has elected to make a lump sum contribution to a capital project in respect of a rating unit; and
b: the eligible ratepayer (or any other person who is for the time being the ratepayer) in respect of the rating unit does not pay the contribution, or a contribution instalment, by its due date (including any amount due under section 117M(4)(b)
2: The local authority concerned may either—
a: cancel the election; or
b: recover the amount owing in a court of competent jurisdiction as a debt due.
3: If the local authority cancels the election it must amend the entries in its rating information database and rates records in relation to the rating unit, for each year that it has recorded information under section 117K section 117K(1)(b)
4: The local authority must record any amount paid as a lump sum contribution in respect of the rating unit as a payment of the rates referred to in subsection (3)—
a: for the first year that the rating unit was liable for those rates; and
b: as being paid at the date that the lump sum contribution was paid.
5: The local authority must record any surplus amount resulting from the operation of subsection (4) as a payment of the rates referred to in subsection (3)—
a: for the next year that the rating unit was liable for those rates; and
b: as being paid at the date that the lump sum contribution was made.
6: The local authority must continue to apply any surplus amount in the manner set out in subsection (5) until either—
a: no surplus remains; or
b: no rates remain unpaid.
7: If, after the operation of subsections (5) and (6),—
a: a deficit for any financial year concerned is shown in the rates record, the local authority must treat the amount or amounts as unpaid rates for the purposes of sections 46(2)(i) 57 58
b: a surplus remains, the local authority must credit the rates record.
8: Subsection (7)(a) is subject (in any particular case) to the local authority applying its rates remission policy under section 85
9: The local authority must apply any credit under subsection (7)(b) in the following manner and order of priority:
a: pay any arrears owing in respect of the rating unit for 1 or more previous financial years:
b: pay any arrears owing in respect of the rating unit for the current financial year:
c: record a credit in the rates record against future rates in respect of the rating unit.
10: If subsection (9)(c) applies,—
a: the ratepayer in respect of the rating unit may apply to the local authority, in writing, for a refund of the credited amount; and
b: the local authority must, as soon as practicable, make the refund.
11: The local authority must issue an amended rates assessment for each year in respect of which it has amended the rates records under this section. Section 117N inserted 28 June 2006 section 10 Local Government (Rating) Amendment Act 2006
5: Replacement of rates and miscellaneous matters
1: Replacement of rates
118: Interpretation
In this subpart, unless the context otherwise requires,— current year relevant year 1988 No 97 s 150A Setting rates again
119: Local authority may set rates again
1: A local authority may set a rate again in the financial year in which the rate was set.
2: Subsection (1) applies if—
a: the local authority determines that it is desirable to set the rate again because of—
i: an irregularity in setting the rate; or
ii: a mistake in calculating the rate; or
iii: a relevant change in circumstances; and
b: setting the rate again will not increase the amount of rates assessed to any rating unit.
3: A local authority may set a rate again only if—
a: it has given 14 days’ public notice of its intention to set the rate again; and
b: it complies with the local authority’s standing orders for the revocation and alteration of resolutions.
4: Notice under subsection (3) must include—
a: the information in relation to the rate that was, or would otherwise have been, required to be included in the local authority’s long-term
b: a statement of the reason why the local authority has determined that it is desirable to set the rate again.
5: If setting the rate again results in a change to the amount of rates to be assessed to any rating unit,—
a: the rates record for the rating unit must be corrected as soon as practicable; and
b: section 41 Section 119(4)(a) amended 27 November 2010 section 50 Local Government Act 2002 Amendment Act 2010 Section 119(4)(a) amended 1 July 2003 section 262 Local Government Act 2002 Replacing invalid rates
120: Replacement of invalid rates
1: A local authority must set replacement rates if a court of competent jurisdiction orders the local authority to do so.
2: A local authority may decide to set replacement rates if—
a: it has obtained an opinion from a barrister or solicitor that the rates in question would be likely to be set aside or declared invalid if they were subjected to judicial review by the High Court; or
b: the local authority determines that it is desirable to set the rate again because of—
i: an irregularity in setting the rate; or
ii: a mistake in calculating the rate; or
iii: a relevant change in circumstances.
3: A local authority must notify the Secretary of Local Government of a decision under subsection (2)(b) within 14 days after the decision is made. 1998 No 97 ss 150B, 150C
121: Notice that rates will be replaced
1: The local authority must, as soon as practicable after the court order or its decision to set replacement rates is made, give public notice that the rates will be replaced.
2: The notice must specify the rates that will be replaced.
3: In addition, the local authority must, as soon as practicable, note on the rates records to which the replacement rates apply—
a: that the local authority will set replacement rates; and
b: the rates that will be replaced. 1988 No 97 s 150D
122: Matters relevant to setting replacement rates
1: The total revenue sought from the replacement rates must not exceed the total revenue sought from the rates to be replaced.
2: For the purposes of setting replacement rates, the local authority has all the powers, duties, and responsibilities that it had under any enactment on the date on which the rate to be replaced was set, even though the law may have changed since that date. 1988 No 97 s 150F Rates replacement proposal
123: Rates replacement proposal
1: Replacement rates must be set by the adoption of a rates replacement proposal prepared in accordance with the special consultative procedure.
2: A rates replacement proposal must—
a: identify the relevant year; and
b: for each of the rates set and assessed by the local authority in the relevant year, state—
i: the date on which the rate was set; and
ii: whether it is a general rate based on rateable value, a uniform annual general charge, or a targeted rate; and
c: identify which of the rates referred to in paragraph (b) are proposed to be replaced and the reasons for their replacement; and
d: for each proposed replacement rate, state whether it is a general rate based on a rateable value, a uniform annual general charge, or a targeted rate; and
e: identify any difference between the revenue sought from the rates to be replaced and that proposed to be sought from the replacement rates and the reasons for that difference; and
f: explain any departure from the revenue and financing policy under section 103
g: explain any difference in basis or type of rates between the rates to be replaced and the replacement rates; and
h: describe the general effect that the rates replacement proposal is expected to have on the overall liability of ratepayers or groups of ratepayers within the district for rates for the relevant year.
3: In giving notice of the rates replacement proposal under the special consultative procedure, the local authority must give specific notice of the proposal to every ratepayer of the district.
4: The notice must include—
a: a summary of sections 126 127
b: a statement that the proposal will not affect rates set and assessed in years after the relevant year and, if a rates replacement proposal is intended for any of those years, a statement of that intention. 1988 No 97 ss 150E(2), 150G Section 123(2)(f) substituted 1 July 2003 section 262 Local Government Act 2002
124: Adoption of rates replacement proposal
1: On the adoption of a rates replacement proposal,—
a: the replacement rates identified in the proposal are set; and
b: the rates to be replaced cease to have effect.
2: Subsection (1)(b) does not affect—
a: the lawfulness of the actions of the local authority in assessing rates before the adoption of the rates replacement proposal; or
b: the lawfulness of the payment of the rates and of the local authority receiving that payment before the adoption of the rates replacement proposal; or
c: a rates rebate granted under the Rates Rebate Act 1973
d: a discount given under a policy provided for in section 55(3) section 56(4) section 57
e: a remission of rates before the adoption of the rates replacement proposal; or
f: the lawfulness of an action to recover unpaid rates taken by the local authority before the adoption of the rates replacement proposal. 1988 No 97 s 150H Effect of replacement rates
125: Adjustment of rates due on properties
1: As soon as practicable after replacement rates are set, the local authority must assess the total liability for replacement rates in respect of each rating unit.
2: Liability for replacement rates for the relevant year must be assessed in accordance with the information in the rating information database as at the end of the financial year immediately before the relevant year.
3: If the total amount of replaced rates that were assessed on a rating unit is more than the total amount assessed under subsection (1) for the rating unit, the amount of the excess must be dealt with under section 126
4: If the total amount of replaced rates that were assessed on any rating unit is less than the total amount assessed under subsection (1) for the rating unit, the amount of the deficit must be dealt with under section 127
5: The local authority must deliver to the ratepayer a notice that—
a: identifies the rates that have been replaced on that rating unit; and
b: describes the replacement rates on the rating unit in sufficient detail to enable the basis for the total amount of replacement rates to be identified; and
c: if subsection (3) applies, identifies the amount of the excess and how section 126
d: if subsection (4) applies, identifies the amount of the deficit and how section 127
e: contains any other explanatory material that the local authority thinks appropriate. 1988 No 97 s 150I
126: Allocation of excess
1: The amount of any excess must be applied in the following order:
a: paying any rates arrears for the relevant year; and
b: paying any other rates arrears owing in respect of the rating unit; and
c: crediting against future rates any remaining sum in anticipation of rates yet to be assessed.
2: If a remaining sum is credited against future rates,—
a: the ratepayer may, at any time, apply in writing to the local authority for the refund of the whole or part of the credited rates; and
b: the local authority must make the refund as soon as practicable after receiving the application. 1988 No 97 s 150J
127: Assessment of deficit
1: The amount of a deficit must be assessed on the rating unit—
a: in the current year if, at the time that the replacement rates are set, the local authority has not set its general rates for the current year; or
b: in the subsequent year in any other case.
2: The amount of the deficit must be identified in the rates assessment as a replacement rates adjustment for the relevant year.
3: The following enactments apply to the assessment of the deficit as if it were rates assessed in the year it is assessed:
a: Parts 3 to 5
b: the Rates Rebate Act 1973
4: The exclusion of all or part of a rating unit from the district of a local authority after the relevant year does not affect the ability of the local authority to assess a deficit on the unit. 1988 No 97 s 150K Particular circumstances
128: Subdivision of rating unit
1: Subsection (2) applies if—
a: part of a rating unit for the relevant year is sold or otherwise transferred; and
b: the sale or transfer occurs before replacement rates are set.
2: The local authority—
a: must allocate any excess or deficit in respect of a rating unit among the several parts of that rating unit in proportion to the rateable values of those parts; and
b: may—
i: credit each of the several parts with the amount of the excess that is calculated in respect of the total rating unit; or
ii: cancel the deficit that is calculated in respect of the total rating unit. 1988 No 97 s 150L
129: Replacement of postponed rates
1: This section applies to postponed rates that are not yet payable at the date on which the replacement rates are set.
2: Those rates must be treated as adjusted—
a: by the amount of an excess under section 126
b: by the amount of a deficit under section 127
3: The local authority must adjust the interest charged on the postponed rates accordingly. 1988 No 97 s 150M
130: Cancellation of deficit
The local authority may cancel the requirement to pay a deficit assessed under this Part—
a: in accordance with a policy for those cancellations that is included in the rates replacement proposal; or
b: if the local authority considers it would be unreasonable not to do so in a particular case. 1988 No 97 s 150N
2: Miscellaneous matters
131: Estimate of projected valuation by regional council
1: This section applies if the general revaluations of the components of the district valuation roll of a regional council do not all take effect on the same date.
2: A regional council may arrange for a registered valuer to make an estimate of the projected valuation of all the rateable land in the districts of the constituent territorial authorities.
3: The purpose of the projected valuation is to indicate the extent and nature of changes in the rateable value of rateable land in each constituent district between—
a: the date on which the general revaluation for that district took effect; and
b: the date nominated by the regional council as the date in respect of which the projected valuation is to be made.
132: Delegation
1: A local authority may delegate the exercise of functions, powers, or duties conferred by this Act on the local authority to—
a: its chief executive officer
b: any other specified officer of the local authority.
2: A local authority must not delegate—
a: the power to delegate; or
b: a function, power, or duty conferred by subpart 2 subpart 1 Section 132(1)(a) amended 7 July 2004 section 9 Local Government (Rating) Amendment Act 2004
133: In certain cases Governor-General in Council may extend time or validate proceedings
1: The Governor-General may, by Order in Council, do 1 or more of the following:
a: extend the time for completing an action, step, or procedure that is required by or under this Act and that is not done or cannot be done by the time required:
b: validate an action, step, or procedure that is required by or under this Act and that is done after the time required:
c: validate an irregularity of form in an action, step, or procedure that is required by or under this Act:
d: make a provision for a situation for which sufficient provision is not made by or under this Act.
2: An order under this section is secondary legislation ( see Part 3 1988 No 97 s 205 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 133(2) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
134: Judge, etc, not interested merely by being ratepayer
A Judge, Justice, or Community Magistrate must not be treated as interested in a case in which he or she is judicially concerned solely because of his or her liability to pay rates. 1988 No 97 s 204
135: Evidence of certain matters
1: In any proceedings, a document that appears to be a copy of a resolution that sets a rate or a copy of an extract from a district valuation roll, a rating information database, or the rates records of a local authority must be received as evidence of the correctness of the content of the document unless the contrary is proved.
2: The document must be signed by the chief executive officer 1988 No 97 s 119 Section 135(2) amended 7 July 2004 section 10 Local Government (Rating) Amendment Act 2004
136: Notification
1: This section applies to the notification of a matter and the delivery of a notice, including a rates assessment or rates invoice.
2: The notice must be in writing and must be sent or delivered—
a: personally; or
b: by post addressed to the person at the person’s—
i: postal address, as notified to the local authority by the person; or
ii: last known business or residential address; or
c: by fax addressed to the person at the person’s fax number; or
d: by any other means (including electronic means) acceptable to the person.
3: A notice that is posted to a person must be treated as received by that person not later than 7 days after the date on which it is posted.
4: A notice that is sent to a person at a fax number or electronic address must be treated as received by that person not later than 2 days after the date on which it is sent.
5: However, a notice must not be treated as received if the person to whom it is posted or sent proves that it was not received, otherwise than through fault on the person’s part. 1974 No 66 s 253 Amendments, savings, repeals of other enactments, and transitional provisions
137: Amendments to other enactments
1: The Acts and regulations specified in Schedules 4 5
2: However, those Acts and regulations continue in force as if they had not been amended to the extent necessary for the levying and collection of rates made or levied for the financial year ending on 30 June 2003 or a previous financial year.
138: Repeals and savings
1: The Acts and regulations specified in Schedule 6
2: However, the Acts and regulations continue in force to the extent necessary for the levying and collection of rates made or levied for the financial year ending on 30 June 2003 or a previous financial year.
139: Transitional provision for rates remission
1: A local authority may remit rates after the commencement of this section as if the Rating Powers Act 1988 were in force.
2: Subsection (1) applies until the close of 30 June 2004.
2A: Despite subsection (2), a local authority that has adopted a long-term
3: Rates that are remitted under subsection (1) must be treated as if they are remitted rates under this Act. Section 139(2A) inserted 7 July 2004 section 11 Local Government (Rating) Amendment Act 2004 Section 139(2A) amended 27 November 2010 section 50 Local Government Act 2002 Amendment Act 2010
140: Transitional provisions for rates postponement
1: A local authority may postpone rates after the commencement of this Act as if the Rating Powers Act 1988 were in force.
2: Subsection (1) applies until the close of 30 June 2004.
3: The following rates must be treated as if they were postponed rates under this Act:
a: rates that are postponed under the Rating Powers Act 1988, but are not payable before the commencement of this section:
b: rates that are postponed under subsection (1).
141: Transitional provision for rates-postponement values
1: Subsection (2) applies if a rates-postponement value of farmland that is determined under section 22
2: Sections 158(1) and (2), 159, and 163 to 166 of the Rating Powers Act 1988 continue to apply to rates on the land—
a: as if that Act had not been repealed; but
b: with all necessary modifications as if the rates are remitted or postponed rates under this Act.
142: Transitional provision for special rateable values
1: This section applies if a special rateable value of land that is determined under any of sections 23 to 27
2: Section 30
3: The special rateable value of the land must be treated as if it is the rateable value of the land for the purposes of this Act.
4: This section applies until the first general revaluation of the land under section 9
143: Certain terms in other enactments must be treated as terms under this Act
1: A reference in an enactment—
a: to making rates must be read as including a reference to setting rates:
b: to levying rates must be read as including a reference to assessing rates:
c: to rateable property must be read as a reference to rateable land:
d: to separately rateable property must be read as a reference to a rating unit or rating units.
2: A reference in an enactment to an occupier in the context of rates or rating must be read as a reference to a ratepayer.
3: Subsection (1) applies unless the context of an enactment otherwise requires.
4: Subsections (1) and (2) apply subject to sections 137 to 142 Schedules 4 5
144: Certain terms in leases, licences, and contracts must be treated as terms under this Act
A reference in a lease, licence, or contract—
a: to the making of rates must be read as including a reference to setting rates:
b: to the levying of rates must be read as including a reference to assessing rates.
145: Saving relating to lump sum contributions
1: Subsection (2) applies to an election to pay a lump sum contribution under section 66 of the Rating Powers Act 1988 if the election is made before the commencement of this Act.
2: Section 67(2)(b) and (c) of the Rating Powers Act 1988 continues to apply after the commencement of this section in respect of the contribution. 1988 No 97 s 211
146: Savings for rates made in accordance with classification or differential systems
1: This section applies if, in the year commencing on 1 July 2002, a local authority makes and levies a rate—
a: in accordance with a classification list, under section 92(1) of the Rating Powers Act 1988; or
b: under section 40 or section 49 of the Rating Powers Act 1988, and in accordance with a special order under section 80 of that Act.
2: A local authority may set and assess a targeted rate for the purposes for which a rate described in subsection (1) is made, but the application of this Act to the targeted rate is modified as follows:
a: if subsection (1)(a) applies, as if each classification under the list were a category under section 17
b: if subsection (1)(b) applies, as if each type or group of property identified in the special order were a category under section 17
3: A local authority must not, in any financial year, set and assess both—
a: a rate under this section; and
b: a targeted rate for the purposes referred to in subsection (2), otherwise than under this section.
4: This section applies, in respect of a local authority, until the close of a financial year in which the local authority does not set and assess a rate under this section. 1988 No 97 s 92
147: Act does not limit charging powers
Nothing in this Act limits the effect of a provision in another Act that allows a local authority to make a charge on, or recover costs from, a person in relation to work performed for, or a service provided to, that person. 1988 No 97 s 214