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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 - Provision for early payment of rates

56: Policy for payment of rates for subsequent financial year

You could also call this:

"Paying next year's rates early: a council's rules for accepting advance payments"

Illustration for Local Government (Rating) Act 2002

A local authority can make a policy for paying rates before they are due for the next financial year. You can pay some money now for rates you will owe later, either for general rates or for targeted rates. If you pay rates early, the local authority must follow their policy and your instructions on how to use the payment.

The local authority's policy can say you can pay some money now for general rates you will owe in the future. It can also say you can pay some money now for targeted rates you will owe in the future, which are for specific activities or groups of activities.

If you make a payment, the local authority must credit it according to their policy and your instructions. The rules in Section 55(2) and (3) also apply to this policy, with some changes. Any payments you make will be used to pay your future rates, even if the policy is no longer in force when the rates are assessed.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM132710.

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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"

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57: Penalties on unpaid rates, or

"What happens if you don't pay your rates on time: penalties and extra costs"

Part 3Assessment, payment, and recovery of rates and remission, postponement, and write-off of rates
Assessment, payment, and recovery: Provision for early payment of rates

56Policy 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:

  3. any sum may be paid in a financial year in anticipation of a liability for general rates in subsequent financial years:
    1. 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, in subsequent financial years.

      1. 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.

      2. Section 55(2) and (3) applies, with the necessary modifications, to a policy adopted under this section.

      3. 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.

      Notes
      • Section 56(2)(b): amended, on , by section 262 of the Local Government Act 2002 (2002 No 84).