Local Government (Rating) Act 2002

Preliminary and key provisions - Key provisions - What kinds of rates may be set?

19A: Rates not to overlap with targeted rates under Urban Development Act 2020

You could also call this:

"Councils can't charge rates for things that Kāinga Ora is already charging for in a project area."

If a special order is made under section 186 of the Urban Development Act 2020, it allows Kāinga Ora to set special rates for a specific project area. You need to know that the local authority can set its own rates, but only for things that Kāinga Ora is not already setting rates for. The local authority can set rates for activities or groups of activities that are not covered by the special order.

If Kāinga Ora is setting rates for something, the local authority cannot set rates for the same thing in the same project area. However, the local authority can set rates for the same thing in other parts of its district that are not part of the project area. The local authority can also set general rates to fund things that benefit the whole district, even if Kāinga Ora is setting special rates for a specific project area.

The rules about what rates the local authority can set are important, and if there is any confusion, the main rule is that the local authority can only set rates for things that are not already covered by the special order made under the Urban Development Act 2020.

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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=LMS391734.

Topics:

Government and voting > Local councilsHousing and property > Land useMāori affairs > Māori land

19: Targeted rate for water supply, or

"Councils can charge you for the water you use, based on how much you use."

20: Rating units in common ownership, or

"When you own two or more properties next to each other, they might be treated as one for rates."

Part 1Preliminary and key provisions
Key provisions: What kinds of rates may be set?

19ARates not to overlap with targeted rates under Urban Development Act 2020

This section applies if an Order in Council under section 186 of the Urban Development Act 2020 authorises Kāinga Ora–Homes and Communities (Kāinga Ora) to set targeted rates under that Act for a project area within a local authority’s district.
The local authority may set a rate to fund activities or groups of activities only to the extent that the order does not authorise Kāinga Ora to set targeted rates to fund those activities or groups of activities.

Examples

Example 1

The order authorises Kāinga Ora to set a targeted rate to fund roading within a project area.

The local authority for the district in which the project area is located may set its own targeted rate to fund roading in a part of its district that is outside the project area.

Example 2

A wastewater system serves the entire district of a local authority.

The order authorises Kāinga Ora to set a targeted rate to fund the upgrade of the part of the wastewater system that serves the project area.

The local authority may set its general rate at a level that enables it to fund the general maintenance and operation of the wastewater system across its entire district, including the part of the system that serves the project area.
If an example in this section is inconsistent with subsection (2), subsection (2) prevails.

Notes

Section 19A: inserted, on 7 August 2020, by section 300 of the Urban Development Act 2020 (2020 No 42).