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Local Government (Rating) Act 2002

Lump sum contributions - Elections to make lump sum contribution

117J: Consequences for eligible ratepayer (and any future ratepayers) of election to make lump sum contribution

You could also call this:

"What happens if you choose to pay a lump sum for a council project and how it affects you and future owners"

Illustration for Local Government (Rating) Act 2002

If you choose to pay a lump sum for a capital project, your rating unit is not liable for certain targeted rates. You won't have to pay the targeted rates that were listed in the invitation as not applying to your rating unit. When you elect to make a lump sum contribution, you take on obligations that are tied to the land, and these obligations are also binding on any future ratepayers of your rating unit.

These obligations stay in place until the lump sum contribution is paid in full or until any recalculation of the contribution is made, whichever date is later. This means that even if someone else becomes the ratepayer for your rating unit, they will still be responsible for fulfilling the obligations you took on. You can find more information about how this law was changed by looking at the Local Government (Rating) Amendment Act 2006.

The obligations you assume when you elect to make a lump sum contribution are an important part of being a ratepayer, and it's essential to understand what they mean for you and any future ratepayers of your rating unit.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM133150.

Topics:
Government and voting > Local councilsHousing and property > Land use
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117I: Lump sum contribution invoice, or

"Invoice for a one-time payment to help fund a local project"

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117K: Local authority must record elections and lump sum contributions in rating information database and rates records, or

"Councils must keep records of your rate payments and lump sum choices."

Part 4ALump sum contributions
Elections to make lump sum contribution

117JConsequences for eligible ratepayer (and any future ratepayers) of election to make lump sum contribution

  1. A rating unit in respect of which the eligible ratepayer has elected to make a lump sum contribution for a capital project is not liable for the targeted rates specified in the invitation concerned as being targeted rates that do not apply to the rating unit.

  2. The obligations assumed by an eligible ratepayer who elects to make a lump sum contribution in respect of a rating unit—

  3. run with the land; and
    1. are binding on every person who is for the time being the ratepayer responsible for the rating unit.

      1. Subsection (2) applies until the date that is the later of—

      2. the date that the contribution is paid in full; or
        1. the date that any recalculation of the contribution is made.

          Notes
          • Section 117J: inserted, on , by section 10 of the Local Government (Rating) Amendment Act 2006 (2006 No 28).