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Local Government (Rating) Act 2002

Assessment, payment, and recovery of rates and remission, postponement, and write-off of rates - Assessment, payment, and recovery - Collection of rates

54: Power not to collect small amounts

You could also call this:

"Local councils don't always collect small rate debts if it's too costly to do so."

Illustration for Local Government (Rating) Act 2002

If you owe a small amount of rates on your property, the local authority might decide not to collect it. They can do this if they think it would be too expensive to collect. If the local authority decides not to collect the rates, you are not required to pay them. The local authority must tell you if they decide not to collect the rates. They might include this information with your rates assessment or they might not send you the assessment at all. If the local authority decides not to collect the rates, they cannot add any penalties to the amount you owe.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM132706.

Topics:
Government and voting > Local councilsHousing and property > Land use
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"Councils can choose someone to collect rates on their behalf"

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55: Policy for early payment of rates in current financial year, or

"Paying rates early: when you can pay some or all of your rates before they're due"

Part 3Assessment, payment, and recovery of rates and remission, postponement, and write-off of rates
Assessment, payment, and recovery: Collection of rates

54Power 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 in a financial year are, in the opinion of a local authority, uneconomic to collect, it may decide not to collect them.

  2. If a local authority decides, under subsection (1), not to collect the rates,—

  3. the ratepayer of the rating unit or separate rating area is not liable to pay the rates; and
    1. no penalties may be added to the unpaid rates.

      1. If subsection (1) applies, the local authority—

      2. must notify the ratepayer that the local authority has decided not to collect the rates; and
        1. may, if a rates assessment for the rating unit or separate rating area has not been delivered,—
          1. include the notice under paragraph (a) with the rates assessment; or
            1. omit to deliver the rates assessment.

            Notes
            • Section 54(1): amended, on , by section 32(1) of the Local Government (Rating of Whenua Māori) Amendment Act 2021 (2021 No 12).
            • Section 54(2)(a): amended, on , by section 32(1) of the Local Government (Rating of Whenua Māori) Amendment Act 2021 (2021 No 12).
            • Section 54(3)(b): amended, on , by section 32(2) of the Local Government (Rating of Whenua Māori) Amendment Act 2021 (2021 No 12).