Local Government (Rating) Act 2002

Lump sum contributions - Recalculation of lump sum contributions

117M: Recalculation of lump sum contributions

You could also call this:

"When a council recalculates how much you owe for a project, they will refund or invoice you based on the final cost."

Illustration for Local Government (Rating) Act 2002

If you are a ratepayer, a local authority can recalculate the lump sum contributions you made to a capital project. They must do this according to the rules set out when they first asked for the contributions. The local authority cannot recalculate the contributions until they know the final cost of the project.

If the local authority recalculates the contributions, they must let you know within one month. If you have paid too much, they will refund the excess amount to you. If you have not paid enough, they will send you an invoice for the extra amount you owe.

The invoice will tell you when you need to pay the extra amount, and this date will be at least one month after the local authority sends you the invoice.

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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=DLM133159.

Topics:

Government and voting > Local councilsHousing and property > Land use

117L: Local authority must notify new ratepayer of liability in respect of rating unit for lump sum contribution, or

"Council must tell new property owners about one-off payment requirements"

117N: Late payment or non-payment of lump sum contribution, or

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

Part 4ALump sum contributions
Recalculation of lump sum contributions

117MRecalculation of lump sum contributions

A local authority may make 1 recalculation of the lump sum contributions to a capital project.
A recalculation must be made in accordance with the factors and methodologies specified in the invitation concerned.
A recalculation must not be made until the final cost of the project is known.
A local authority must, no later than 1 month after a recalculation,—
if the liability from the lump sum contributions decreases, refund the excess to the ratepayer for each rating unit in respect of which a contribution was made; or
if the liability from the lump sum contributions increases, deliver an invoice to the ratepayer for each rating unit in respect of which a contribution was made.

Any invoice to which subsection (4)(b) applies must specify a due date for payment that is not less than 1 month after the date on which the invoice is delivered.

Notes

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