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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 - Legal proceedings to recover rates

65: Limitation of time for recovery of rates

You could also call this:

"The local council has 6 years to take you to court for unpaid rates."

Illustration for Local Government (Rating) Act 2002

If you owe unpaid rates, the local authority can take you to court to get the money. They must do this within 6 years of when the rates were due. If you had to pay your rates all at once, the 6 years start from the date the rates were due. If you had to pay your rates in several payments, the 6 years start from the date the last payment was due.

If the local authority lets you delay paying your rates, they can still take you to court for the unpaid rates. They must do this within 6 years of the new date they set for payment. This rule applies to all rates set by the local authority under the Local Government (Rating) Act 2002 or the Rating Powers Act 1988.

You should be aware that this rule is about when the local authority can take action, it does not change when your rates are due. The local authority can take you to court within the 6-year time limit. This time limit applies to all unpaid rates.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM132724.

Topics:
Government and voting > Local councilsHousing and property > Land use
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64: Service of summons, or

"How a court notice is delivered to you if you owe rates and can't be found"

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65A: Recovery of unpaid rates from person actually using certain land, or

"Paying unpaid rates for land you're using if the owner hasn't paid"

Part 3Assessment, payment, and recovery of rates and remission, postponement, and write-off of rates
Assessment, payment, and recovery: Legal proceedings to recover rates

65Limitation of time for recovery of rates

  1. An action to recover unpaid rates must not be commenced in a court of competent jurisdiction later than 6 years after—

  2. the date on which the rates became due if the local authority required the rates to be paid in 1 payment in a financial year; or
    1. the date on which the last payment became due if the local authority required the rates to be paid in a number of payments in a financial year.

      1. If the local authority postpones the requirement to pay rates in whole or in part and the postponed rates are not subsequently written off, an action to recover unpaid postponed rates must not be commenced in a court of competent jurisdiction later than 6 years after the date or event to which the rates were postponed.

      2. This section applies to rates set and assessed under this Act or made and levied under the Rating Powers Act 1988.