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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 - Rating sales and leases

75: Application of proceeds of rating sale or lease

You could also call this:

"What happens to the money when a property is sold or leased to pay unpaid rates?"

Illustration for Local Government (Rating) Act 2002

When a property is sold or leased because of unpaid rates, the money from the sale or lease is used to pay off debts in a certain order. You pay the Registrar's fee first, unless you have already paid it. Next, you pay any judgment, interest, costs, and disbursements. You also pay any other unpaid rates for the same property, including interest, costs, and disbursements. The money is then used to pay any other rates you owe on the property, and any encumbrances on the property. After that, you pay any other unpaid rates for other properties you own in the district, including interest, costs, and disbursements, as well as any other rates you owe on those properties.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM132736.

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

75Application of proceeds of rating sale or lease

  1. The proceeds of a sale or lease under section 71 or section 72 must be applied in the following order:

  2. the Registrar’s fee (unless the fee has already been paid):
    1. the judgment, and any interest, costs, and disbursements:
      1. any other unsatisfied judgment for rates for the same rating unit, with any interest, costs, and disbursements:
        1. any other rates due at the date of the sale or lease of the same rating unit, whether or not those rates are still recoverable under section 65 (including, in the case of a lease, the rates (if any) that are or become due on the unit from the person on whose behalf the unit was leased while the Registrar received rents from it):
          1. any encumbrance on the rating unit:
            1. any other unsatisfied judgment for rates on other rating units in the district (if the person against whom the judgment is entered is the ratepayer of other rating units), with any interest, costs, and disbursements:
              1. any other rates due at the date of the sale or lease for other rating units owned by that person, whether or not the other rates are outside the period of limitation specified in section 65.

                Notes
                • Section 75(a): amended, on , by section 5 of the Local Government (Rating) Amendment Act 2016 (2016 No 65).
                • Section 75(d): amended, on , by section 7(1) of the Local Government (Rating) Amendment Act 2004 (2004 No 66).
                • Section 75(g): amended, on , by section 7(2) of the Local Government (Rating) Amendment Act 2004 (2004 No 66).