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Local Government (Rating) Act 2002

Rating information database and rates records - Rates records

42: Recovery of additional rates in certain cases

You could also call this:

"Paying extra rates if you haven't paid the right amount"

Illustration for Local Government (Rating) Act 2002

If you have not paid the right amount of rates, a local authority can ask you to pay more. This can happen if something changes that affects how much you need to pay, and you do not tell the local authority about the change as required by sections 31 to 33. The local authority can then ask you to pay the difference if they have not collected the full amount of rates they were supposed to get from you.

The local authority will calculate the amount of extra rates you need to pay using a formula. They can also add interest to this amount, but the interest rate cannot be more than what their bank charges them.

The local authority treats this interest like a penalty, following the rules set out in section 58.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM132286.

Topics:
Government and voting > Local councilsHousing and property > Land use
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41A: Amended assessment to give effect to objection to valuation under Rating Valuations Act 1998, or

"Changing your rates bill if the council updates its valuation information"

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43: Rates must be assessed in accordance with values and factors, or

"How your rates are calculated based on your property's value or usage."

Part 2Rating information database and rates records
Rates records

42Recovery of additional rates in certain cases

  1. Despite section 41(4), a local authority may recover additional rates from a ratepayer if—

  2. there has been a change in any matter affecting the liability of the ratepayer to pay rates; and
    1. the ratepayer has failed to notify the local authority of a change in circumstances in accordance with sections 31 to 33 or any other enactment, or did not do so within the required time; and
      1. as a result, the local authority has not collected the full amount of rates to which it was entitled for the rating unit.

        1. The amount of the additional rates recovered under subsection (1) must be calculated in accordance with the following formula:

          a − b

          Where:

          • 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.

          • This section applies to the interest as if it were a penalty imposed under section 58.