1AATransitional, savings, and related provisions Empowered by s 5A
1Provisions relating to Local Government (Rating of Whenua Māori) Amendment Act 2021
1Definition of amendment Act
In this Part, amendment Act means the Local Government (Rating of Whenua Māori) Amendment Act 2021.
Notes
- Schedule 1AA clause 1: inserted, on , by section 51 of the Local Government (Rating of Whenua Māori) Amendment Act 2021 (2021 No 12).
2Local authority must write off rates arrears for Māori freehold land that is non-rateable on commencement of section 52 of amendment Act
On the commencement of section 52 of the amendment Act, a local authority must write off rates arrears in respect of—
- land that is subject to a Ngā Whenua Rāhui kawenata; and
- Māori freehold land that is unused (within the meaning of Schedule 1 of this Act).
Notes
- Schedule 1AA clause 2: inserted, on , by section 51 of the Local Government (Rating of Whenua Māori) Amendment Act 2021 (2021 No 12).
3Recognition of pre-commencement actions and processes in relation to separate rating areas
Any action or process undertaken before the commencement of section 48 of the amendment Act by a local authority or any other person may be taken into account by the local authority in determining a part of a rating unit to be a separate rating area on or after the commencement date if the local authority is satisfied that the action or process is consistent with the provisions of this Act as amended by the amendment Act.
Notes
- Schedule 1AA clause 3: inserted, on , by section 51 of the Local Government (Rating of Whenua Māori) Amendment Act 2021 (2021 No 12).
2Provisions relating to Water Services Entities Amendment Act 2023
4Rates for water services
This clause applies if—
- a territorial authority’s district is wholly or partly in the service area of a water services entity with an establishment date (under section 6A(4) or (5) of the Water Services Entities Act 2022) in a financial year; and
- the territorial authority is, under section 6A(2) of the Water Services Entities Act 2022, to provide water services in its district for any part of that financial year.
The territorial authority must assess, set, and collect rates, and recover unpaid rates (subject to any remission, postponement, or writing off of rates), for water services to be provided by the territorial authority in that district for all of that financial year.
See also clause 38 of Schedule 1AA of the Local Government Act 2002.
Notes
- Schedule 1AA clause 4: inserted, on , by section 39 of the Water Services Entities Amendment Act 2023 (2023 No 44).
5Section 21 modified (Certain rates must not exceed 30% of total rates revenue)
This clause applies to a local authority that—
- will provide water services after 1 July 2024; and
- will cease to provide water services before or on 1 July 2026.
This clause does not apply to a local authority that is—
- a local authority whose district is wholly or partly in the service area of a water services entity with an establishment date (under section 6A(4) or (5) of the Water Services Entities Act 2022) of 1 July 2024; or
- the Chatham Islands Council.
The local authority may, after the commencement of this clause and despite section 21(1), seek rates revenue in the 2024/25, 2025/26, or 2026/27 financial year from section 21(2) rates that exceeds 30% of the total revenue from all rates sought by the local authority for that year.
However, a local authority may rely on subclause (3) in a financial year only if the proportion of its rates income from section 21(2) rates in that financial year does not exceed the proportion of its rates income from section 21(2) rates in the last year in which it provided water services.
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For the purposes of subclause (4), the proportion of the local authority’s rates income from section 21(2) rates in that financial year must be calculated as if—
- the local authority were seeking in that financial year the same proportion of section 21(3) rates as it sought in the last year in which it provided water services; and
- the local authority’s rates income from all rates in that financial year included the same proportion of section 21(3) rates as it sought in the last year in which it provided water services.
In this clause,—
section 21(2) rates means the rates described in section 21(2), other than section 21(3) rates
section 21(3) rates means targeted rates that are set solely for water supply or sewage disposal.
Example
The effect of the limit in subclause (4) is illustrated in the following example.
| Equation item (Rates) | Section | Last year | Financial year | Proportion | ||
| A = | Uniform annual general charges (excluding water supply or sewage disposal rates) | 21(2)(a) | 1,000 | 1,000 | 10.10% | |
| B = | Uniform targeted rates (excluding water supply or sewage disposal rates) | 21(2)(b) | 1,950 | 1,950 | 19.60% | |
| C = | Uniform targeted rates for water supply or sewage disposal | 21(3) | 2,000 | [2,000] | [20.10]% | |
| D = | All other rates | 5,000 | 5,000 | 50.25% | ||
| E = | Total rates | 21(1) | 9,950 | 7,950 | 100.00% | |
| Percentage of total revenue from all rates | ||||||
| (A + B) / E <= 30% | 29.6% | 37.1% | ||||
Notes
- Schedule 1AA clause 5: inserted, on , by section 39 of the Water Services Entities Amendment Act 2023 (2023 No 44).
Chatham Islands Council
6Chatham Islands Council not subject to specified clauses
The following clauses of this schedule do not apply to the Chatham Islands Council:
- clause 4 (rates for water services):
- clause 5 (section 21 modified (certain rates must not exceed 30% of total rates revenue)).
Notes
- Schedule 1AA clause 6: inserted, on , by section 39 of the Water Services Entities Amendment Act 2023 (2023 No 44).