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Local Government (Rating) Act 2002

Replacement of rates and miscellaneous matters - Replacement of rates - Effect of replacement rates

125: Adjustment of rates due on properties

You could also call this:

"What happens when the rates on your property change"

Illustration for Local Government (Rating) Act 2002

When replacement rates are set, the local authority must work out the total amount of rates you owe for your property as soon as possible. They use the information in the rating database from the end of the previous financial year to do this. You will get a notice from the local authority that explains the new rates and how they were calculated.

If you owed more in the old rates than in the new rates, the extra amount is dealt with under section 126. If you owed less in the old rates than in the new rates, the amount you are short is dealt with under section 127. The local authority will send you a notice that explains what is happening with your rates.

The notice you get will tell you which rates have been replaced, what the new rates are, and how they were calculated. If there is an excess or a deficit, the notice will explain how it is being handled, including how section 126 or section 127 applies. The notice might also include other information to help you understand the changes to your 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=DLM133183.

Topics:
Government and voting > Local councilsHousing and property > Land use
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124: Adoption of rates replacement proposal, or

"When a council adopts a new plan to replace old rates, the new rates take effect and the old ones stop being used."

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126: Allocation of excess, or

"What happens to extra money you pay for your rates"

Part 5Replacement of rates and miscellaneous matters
Replacement of rates: Effect of replacement rates

125Adjustment of rates due on properties

  1. As soon as practicable after replacement rates are set, the local authority must assess the total liability for replacement rates in respect of each rating unit.

  2. Liability for replacement rates for the relevant year must be assessed in accordance with the information in the rating information database as at the end of the financial year immediately before the relevant year.

  3. If the total amount of replaced rates that were assessed on a rating unit is more than the total amount assessed under subsection (1) for the rating unit, the amount of the excess must be dealt with under section 126.

  4. If the total amount of replaced rates that were assessed on any rating unit is less than the total amount assessed under subsection (1) for the rating unit, the amount of the deficit must be dealt with under section 127.

  5. The local authority must deliver to the ratepayer a notice that—

  6. identifies the rates that have been replaced on that rating unit; and
    1. describes the replacement rates on the rating unit in sufficient detail to enable the basis for the total amount of replacement rates to be identified; and
      1. if subsection (3) applies, identifies the amount of the excess and how section 126 applies; and
        1. if subsection (4) applies, identifies the amount of the deficit and how section 127 applies; and
          1. contains any other explanatory material that the local authority thinks appropriate.