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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 - Legal proceedings to recover unpaid levies with unpaid rates

75B: Application of proceeds of rating sale or lease that involves levy

You could also call this:

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

Illustration for Local Government (Rating) Act 2002

When you sell or lease a property to pay unpaid rates and levies, the money from the sale or lease is used in a certain order. You pay the Registrar's fee first, unless you have already paid it. Then you pay any judgment, interest, costs, and disbursements.

You use the money to pay any other unpaid rates or levies for the same property, including interest, costs, and disbursements. You also pay any other rates or levies due for the property at the time of the sale or lease. If you have other properties, you use the money to pay any unpaid rates or levies for those properties.

If there are levies imposed under more than one levy order under the Infrastructure Funding and Financing Act 2020, the money from the sale is applied to the levies in the order they were made. The money is also used to pay any encumbrances on the property. Any remaining money is used to pay other unpaid rates or levies for your 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=LMS391653.

Topics:
Government and voting > Local councilsHousing and property > Land useMoney and consumer rights > Taxes
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75A: Unpaid levy under Infrastructure Funding and Financing Act 2020, or

"What happens if you don't pay your rates and a special fee on time"

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76: Application of balance of proceeds, or

"What happens to leftover money after a property is sold to pay unpaid rates and levies?"

Part 3Assessment, payment, and recovery of rates and remission, postponement, and write-off of rates
Assessment, payment, and recovery: Legal proceedings to recover unpaid levies with unpaid rates

75BApplication of proceeds of rating sale or lease that involves levy

  1. The proceeds of a sale or lease under section 70 or 71 that relates to a levy as well as rates 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 unsatisfied judgment for a levy 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 other levy due at the date of the sale or lease of the same rating unit, whether or not that levy is still recoverable under section 65 (including, in the case of a lease, the levy (if any) that is or becomes 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 unsatisfied judgment for a levy on other rating units in the district (if the person against whom the judgment is entered is the levypayer 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:
                      1. any other levy due at the date of the sale or lease for other rating units owned by that person, whether or not the other levy is outside the period of limitation specified in section 65.

                        1. For the purposes of subsection (1)(f), if levies are imposed under more than 1 levy order under the Infrastructure Funding and Financing Act 2020, the proceeds of sale that are applied to a levy must be applied in the order in which those orders were made.

                        Notes
                        • Section 75B: inserted, on , by section 161 of the Infrastructure Funding and Financing Act 2020 (2020 No 47).