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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
Recovery of unpaid rates
60: Invalidity of rates not ground for refusal to pay rates

Part 1:
Preliminary and key provisions

Preliminary provisions

2Commencement 3Purpose 4Outline 5Interpretation 5ATransitional, savings, and related provisions 5ATemporary definition of public notice as result of outbreak of COVID-19 6Act binds the Crown

Key provisions

Part 2:
Rating information database and rates records

Rating information database

27Rating information database 28Inspection of rating information database 28AInspection of complete rating information database 28BLocal authority must inform owners of rating units and ratepayers for separate rating areas of right to withhold certain information from database 28COwner of rating unit and ratepayer for separate rating area entered on database may require local authority to withhold information from database 28DTransitional provision for local authority to establish database 29Objections to rating information database

Notification of change in circumstances

30Interpretation 31Notification of change of ownership of rating unit 32Notification of surrender or termination of lease or licence 33Notification of transfer or assignment of lease or licence 34Effect of notice on liability for rates 35When name of ratepayer entered in rating information database may be removed 36Notification of change of name

Rates records

37Rates records 38Inspection of rates records 39Objection to rates records 40Local authority may correct errors in rating information database and rates records 41Amended assessment if error in rating information database or rates record is corrected 41AAmended assessment to give effect to objection to valuation under Rating Valuations Act 1998 42Recovery of additional rates in certain cases

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

Assessment, payment, and recovery

Basis for assessment of rates

43Rates must be assessed in accordance with values and factors

Notice to ratepayers of rates liability

44Notice of rates assessment 45Contents of rates assessment 46Rates invoice 47Issue of amended rates invoice 48Delivery of rates assessment and rates invoice 49Late delivery of rates invoice 50Rates invoice based on previous year’s rates 51Combined rates assessment and rates invoice

Collection of rates

52Payment of rates 53One or more local authorities may appoint collector 54Power not to collect small amounts

Provision for early payment of rates

55Policy for early payment of rates in current financial year 56Policy for payment of rates for subsequent financial year

Penalties

57Penalties on unpaid rates 58Imposition of penalty

Recovery of unpaid rates

59Rates are charge against rating unit 60Invalidity of rates not ground for refusal to pay rates

Recovery from persons other than owner

61Default by person other than owner 62Recovery of rates if owner in default 62APerson actually using certain abandoned general land liable for rates

Legal proceedings to recover rates

63Legal proceedings to recover rates 64Service of summons 65Limitation of time for recovery of rates 65ARecovery of unpaid rates from person actually using certain land 66Registration of charging order for judgment for rates

Rating sales and leases

67Enforcement of judgment 68Rating sale or lease 69Service of notice 70Rating unit may be sold or leased 71How rating sale or lease must be conducted 72Further powers and duties of Registrar 73Execution of documents for rating sale or lease 74Presumption of valid rating sale or lease 75Application of proceeds of rating sale or lease

Legal proceedings to recover unpaid levies with unpaid rates

75AUnpaid levy under Infrastructure Funding and Financing Act 2020 75BApplication of proceeds of rating sale or lease that involves levy 76Application of balance of proceeds

Abandoned land

77Sale or lease of abandoned land 78Court may order sale or lease of abandoned land 79Conduct of sale or lease of abandoned land 80Execution of documents for abandoned land 81Presumption that sale or lease valid 82Application of proceeds of sale or lease 83Registration of instruments 83AUnpaid levy under Infrastructure Funding and Financing Act 2020 83BApplication of proceeds of sale or lease

Crown land

84Crown land held on lease or licence

Remission, postponement, and write-off

Remission of rates

85Remission of rates 86Recording remitted rates

Postponement of requirement to pay rates

87Postponement of requirement to pay rates 88Postponement fee may be added to postponed rates 89Recording postponed rates 90Postponed rates may be registered as charge on rating unit

Power of chief executive to write off rates

90AChief executive may write off rates that cannot be recovered 90BChief executive may write off rates of deceased owners of Māori freehold land 90CChief executive may delegate power to write off rates 90DAmount of rates written off to be included in notes to financial statements

Part 4:
Rating of Māori freehold land

91Liability of Māori freehold land for rates

District valuation rolls

92Recording name of ratepayer

Land vested in trustees

93Limitation on trustee liability

Māori freehold land in multiple ownership

94Appointment of person to receive notices 95Effect of appointment of owner or agent

Person actually using Māori freehold land in multiple ownership or separate rating areas

96Person actually using land liable for rates 97Rates assessment delivered to person actually using land 98Ratepayer of underlying rating unit not liable for rates on separate rating area

Separate rating areas on Māori freehold land

98AHow rating unit on Māori freehold land divided into separate rating areas 98BApportionment of rates for separate rating areas 98CContents of rates assessment for separate rating area 98DWhen separate rating area divided from rating area 98EHow separate rating area ceases to be a separate rating area 98FElection to make lump sum contributions must be made on behalf of underlying rating unit

Charging orders

99Application for charging order 100Matters that must be taken into account by Māori Land Court 101Powers of Māori Land Court to make charging order 102Charging order must be registered 103Charging order in favour of owner paying rates

Effect of charging orders

104Effect of charging order 105Charging order in force until discharged 106Consolidation of charging orders 107Charging order apportioned if land partitioned

Enforcement of charging orders

108Māori Land Court may enforce charging order 109Scope of order 110Cancellation of order to enforce charging order 111Māori Land Court may make order for payment

Discharge of charging orders

112Discharge of charging order in full or in part 113Notation and registration of discharge

Remission, postponement, and exemption of rates

114Remission of rates on Māori freehold land generally 114ARemission of rates for Māori freehold land under development 115Postponement of requirement to pay rates 116Exemption of Māori freehold land from rates 117Effect of exemption

Part 4A:
Lump sum contributions

117AInterpretation 117BLocal authority may fund capital project by lump sum contributions 117CRequirement to pay lump sum contribution must not be imposed on ratepayers 117DConsequences for local authority if capital project funding plan adopted

Capital project funding plans

117EContents of capital project funding plan

Invitations to make lump sum contribution

117FInvitations to make lump sum contribution 117GContents of invitation

Elections to make lump sum contribution

117HEligible ratepayer may elect to make lump sum contribution 117ILump sum contribution invoice 117JConsequences for eligible ratepayer (and any future ratepayers) of election to make lump sum contribution

Local authority must record certain matters

117KLocal authority must record elections and lump sum contributions in rating information database and rates records

Change of ownership of rating unit

117LLocal authority must notify new ratepayer of liability in respect of rating unit for lump sum contribution

Recalculation of lump sum contributions

117MRecalculation of lump sum contributions

Late payment or non-payment of lump sum contribution

117NLate payment or non-payment of lump sum contribution

Part 5:
Replacement of rates and miscellaneous matters

Replacement of rates

118Interpretation

Setting rates again

119Local authority may set rates again

Replacing invalid rates

120Replacement of invalid rates 121Notice that rates will be replaced 122Matters relevant to setting replacement rates

Rates replacement proposal

123Rates replacement proposal 124Adoption of rates replacement proposal

Effect of replacement rates

125Adjustment of rates due on properties 126Allocation of excess 127Assessment of deficit

Particular circumstances

128Subdivision of rating unit 129Replacement of postponed rates 130Cancellation of deficit

Miscellaneous matters

131Estimate of projected valuation by regional council 132Delegation 133In certain cases Governor-General in Council may extend time or validate proceedings 134Judge, etc, not interested merely by being ratepayer 135Evidence of certain matters 136Notification

Amendments, savings, repeals of other enactments, and transitional provisions

137Amendments to other enactments 138Repeals and savings 139Transitional provision for rates remission 140Transitional provisions for rates postponement 141Transitional provision for rates-postponement values 142Transitional provision for special rateable values 143Certain terms in other enactments must be treated as terms under this Act 144Certain terms in leases, licences, and contracts must be treated as terms under this Act 145Saving relating to lump sum contributions 146Savings for rates made in accordance with classification or differential systems 147Act does not limit charging powers

Schedule 1AA:
Transitional, savings, and related provisions

Schedule 1:
Categories of non-rateable land

Schedule 2:
Matters that may be used to define categories of rateable land

Schedule 3:
Factors that may be used in calculating liability for targeted rates

Schedule 3A:
Lump sum contributions

Schedule 4:
Amendments to Rating Valuations Act 1998

Schedule 5:
Amendments to other Acts and regulations

Schedule 6:
Repeals and revocations

Local Government (Rating) Act 2002

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

60: Invalidity of rates not ground for refusal to pay rates

You could also call this:

"You can't refuse to pay rates just because you think they're wrong, you must go to court first."

Illustration for Local Government (Rating) Act 2002

If you think the rates you have to pay are invalid, you cannot just refuse to pay them. You must go to the High Court to challenge the rates if you want to argue that the local authority does not have the power to set or assess the rates for your particular property. You have to take this step before you can refuse to pay the rates.

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This page was last updated on 18 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM132717.

Topics:

Government and voting > Local councilsHousing and property > Land use

59: Rates are charge against rating unit, or

"Rates are a charge on your property"

61: Default by person other than owner, or

"What happens if someone else doesn't pay the property rates they're responsible for"

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

60Invalidity 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.