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Local Government (Rating) Act 2002

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

127: Assessment of deficit

You could also call this:

"Working out a deficit for a property's rates bill"

Illustration for Local Government (Rating) Act 2002

When you are working out a deficit for a rating unit, you do this in the current year if the local authority has not yet set its general rates for that year. You do this in the next year if the local authority has already set its general rates. You must show the amount of the deficit in the rates assessment as a replacement rates adjustment for the relevant year. This helps you understand how the deficit is worked out.

If you are assessing a deficit, certain rules apply, such as Parts 3 to 5 and the Rates Rebate Act 1973, as if the deficit were rates assessed in that year. These rules help you understand how the deficit is treated. You follow these rules when you are working out the deficit.

If a rating unit is removed from a local authority's district after the relevant year, this does not stop the local authority from assessing a deficit on that unit. You can still work out the deficit even if the unit is no longer in the district. This is an important thing to remember when you are working out deficits.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM133185.

Topics:
Government and voting > Local councilsHousing and property > Land use
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126: Allocation of excess, or

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

127Assessment of deficit

  1. The amount of a deficit must be assessed on the rating unit—

  2. in the current year if, at the time that the replacement rates are set, the local authority has not set its general rates for the current year; or
    1. in the subsequent year in any other case.

      1. The amount of the deficit must be identified in the rates assessment as a replacement rates adjustment for the relevant year.

      2. The following enactments apply to the assessment of the deficit as if it were rates assessed in the year it is assessed:

      3. Parts 3 to 5:
        1. the Rates Rebate Act 1973.

          1. The exclusion of all or part of a rating unit from the district of a local authority after the relevant year does not affect the ability of the local authority to assess a deficit on the unit.