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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 - Penalties

57: Penalties on unpaid rates

You could also call this:

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

Illustration for Local Government (Rating) Act 2002

If you do not pay your rates on time, a local authority can add a penalty to the amount you owe. They must decide to do this before they set the rates for the year and they must say how they will work out the penalty. They also have to say when they will add the penalty to the amount you owe.

When a local authority adds a penalty, it cannot be more than 10% of the amount you owe. They cannot add a penalty to rates that have been postponed under section 87 until you have to pay those rates. This means you will not get a penalty on postponed rates until it is time for you to pay them.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM132713.

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Government and voting > Local councilsHousing and property > Land use
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58: Imposition of penalty, or

"What happens if you don't pay your rates on time: penalties can be added"

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

57Penalties 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—

  3. be made not later than the date when the local authority sets the rates for the financial year; and
    1. state—
      1. how the penalty is calculated; and
        1. the date that the penalty is to be added to the amount of the unpaid rates.

        2. A penalty must not—

        3. exceed 10% of the amount of the unpaid rates on the date when the penalty is added; or
          1. be added to rates postponed under section 87 until the rates become payable.