Local Government (Rating) Act 2002

Assessment, payment, and recovery of rates and remission, postponement, and write-off of rates - Assessment, payment, and recovery - Recovery from persons other than owner

61: Default by person other than owner

You could also call this:

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

Illustration for Local Government (Rating) Act 2002

If you are not the owner of a property, but you are responsible for paying its rates, and you do not pay them, the local authority can ask the owner to pay instead. You, as the owner, can then try to get that money back from the person who was supposed to pay the rates. You can do this by treating the amount as a debt that the person owes you.

If you pay the unpaid rates, you can also choose to keep the amount from any money you owe the person who was supposed to pay the rates, as described in section 11(2). This means you do not have to pay them the full amount you owe if they have not paid their rates. You can subtract the amount of the unpaid rates from the money you owe them.

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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=DLM132719.

Topics:

Government and voting > Local councilsHousing and property > Land use

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

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

62: Recovery of rates if owner in default, or

"What happens if you don't pay your property rates on time"

Part 3Assessment, payment, and recovery of rates and remission, postponement, and write-off of rates
Assessment, payment, and recovery: Recovery from persons other than owner

61Default by person other than owner

If a ratepayer other than the owner, as described in section 11(2), defaults in paying the rates on the rating unit, the local authority may recover the rates from the owner of the rating unit.
An owner who pays the unpaid rates under subsection (1) may—
recover that amount from the ratepayer as a debt; or
retain that amount from any money that the owner owes to the ratepayer.