Local Government (Rating) Act 2002

Assessment, payment, and recovery of rates and remission, postponement, and write-off of rates - Assessment, payment, and recovery - Rating sales and leases

67: Enforcement of judgment

You could also call this:

"What happens if you don't pay your rates: the council can take you to court to get the money you owe."

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If you do not pay rates you owe within three months, the local authority can ask the High Court to make you pay. They must send a certificate with your details and the amount you owe to the High Court Registrar, along with a fee set by regulations made under section 156 of the Senior Courts Act 2016. They must also provide evidence that the land is not exempt from being sold or leased.

The local authority can then sell or lease your land to get the money you owe. However, this does not apply to certain types of land, such as land that cannot be sold or transferred due to other laws, or land described in section 62A(1).

If you have other land that is not exempt, the local authority can lease the exempt land or register a charging order on your other land to recover the unpaid rates. In some cases, the local authority can lease the land without needing the Minister's consent, even if the land normally requires this consent.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM132727.


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"What happens when a charging order is made against your property for unpaid rates"


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68: Rating sale or lease, or

"What happens if you don't pay your rates: sale or lease of a property"

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

67Enforcement of judgment

  1. If payment is not made to satisfy a judgment for rates (including any costs, interest, and disbursements) within 3 months after the date of the judgment, the local authority may apply, in accordance with subsection (2), to the Registrar of the High Court to have the judgment enforced by sale or lease of the rating unit.

  2. The local authority must forward to the Registrar—

  3. a certificate, signed and dated by the chief executive officer of the local authority, stating—
    1. the date of the judgment:
      1. the amount of the judgment given against the ratepayer or other person:
        1. the name of the ratepayer or other person:
          1. the address of the rating unit that is subject to the judgment and its legal description and location; and
          2. the fee as fixed by regulations made under section 156 of the Senior Courts Act 2016; and
            1. evidence that the land is not land described in section 62A(1)(a) and (b).
              1. Subsection (1) does not apply to—

              2. land that is subject to enactments that prohibit the alienation or transfer of that land; or
                1. land described in section 62A(1).
                  1. However, the local authority may, in respect of land described in subsection (3)(a),

                  2. offer that land, or part of it, for lease under this section on terms that produce a yearly rent equivalent to the amount of rates payable on the whole of the land, together with 5% added for the recovery of expenses; or
                    1. if the ratepayer has an estate or interest in other land that is not subject to an enactment of the kind referred to in subsection (3), register a charging order on, and transfer the power to sell, that other land, or part of it, to produce the amount required to recover the unpaid rates, together with 5% added for the recovery of expenses.
                      1. Despite any other enactment, in the case of land that requires the consent of a Minister of the Crown before it may be leased, consent is not required for a lease under this section.

                      Notes
                      • Section 67(2)(a): amended, on , by section 6 of the Local Government (Rating) Amendment Act 2004 (2004 No 66).
                      • Section 67(2)(b): amended, on , by section 183(b) of the Senior Courts Act 2016 (2016 No 48).
                      • Section 67(2)(c): inserted, on , by section 36(1) of the Local Government (Rating of Whenua Māori) Amendment Act 2021 (2021 No 12).
                      • Section 67(3): replaced, on , by section 36(2) of the Local Government (Rating of Whenua Māori) Amendment Act 2021 (2021 No 12).
                      • Section 67(4): amended, on , by section 36(3) of the Local Government (Rating of Whenua Māori) Amendment Act 2021 (2021 No 12).