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Local Government Act 1974

Local authorities fuel tax

185: Powers of component authorities to levy fuel tax

You could also call this:

"Local councils can charge a tax on fuel used in their area"

Illustration for Local Government Act 1974

You live in a tax area with component authorities that can levy a tax called the local authorities fuel tax. This tax is on specified engine fuel delivered or used in the tax area. The tax is levied at rates specified in scale A, scale B, or scale C in the Schedule 6 schedule. The rate of tax depends on the type of fuel, and you can find the rates in the schedule.

You do not have to pay the local authorities fuel tax if you are a wholesale distributor selling fuel to another wholesale distributor, or if you are exporting fuel. If diesel is a specified engine fuel, the tax also applies to blends of kerosene and diesel. The local authorities fuel tax replaces the local authorities petroleum tax, and any notices about the old tax are still valid under the new tax.

When you see references to the local authorities petroleum tax in other laws or documents, you should read them as references to the local authorities fuel tax, unless the context says otherwise. The local authorities fuel tax is levied under this Part of the Act, and you can find more information about the tax rates and rules in the schedules and other sections of the Act, such as section 186 and Schedule 8.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM419273.

Topics:
Government and voting > Local councilsMoney and consumer rights > Taxes
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184: Notice of change of distribution authority, or

"Telling people when a new group takes over giving out fuel tax money"

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186: Alteration of scale of tax, or

"Changing the tax rate in your area: how local councils vote to make changes"

Part 11Local authorities fuel tax

185Powers of component authorities to levy fuel tax

  1. There may from time to time, on behalf of the component authorities of any tax area, be levied in accordance with this Part a tax, to be called the local authorities fuel tax, on all specified engine fuel that, on or after the date on which the tax becomes effective, is—

  2. delivered within the tax area by or on behalf of any wholesale distributor pursuant to any sale, agreement to sell, or disposition made by the wholesale distributor before or after the commencement of this Part, irrespective of where the sale, agreement to sell, or disposition was made; or
    1. used by any wholesale distributor within the tax area.

      1. Any tax so levied shall be—

      2. at the rates specified in scale A or in scale B or in scale C in Schedule 6; and
        1. in respect of each class of specified engine fuel specified in that schedule, at the rate specified for that class in the scale under which the tax is levied.

          1. Notwithstanding anything in subsection (1), no local authorities fuel tax shall be levied or payable in respect of any transaction whereby—

          2. any specified engine fuel is sold or agreed to be sold or disposed of by a wholesale distributor to another wholesale distributor; or
            1. any specified engine fuel is exported by a wholesale distributor, or is sold or agreed to be sold or disposed of by him for exportation, and is loaded upon the exporting ship or aircraft.

              1. If any type of diesel is a specified engine fuel, the local authorities fuel tax applies to blends of kerosene and diesel as if they were entirely diesel.

              2. Subject to this Part, the local authorities petroleum tax being levied immediately before the commencement of this Part pursuant to the Local Authorities (Petroleum Tax) Act 1970 shall continue to be levied under this Part, as if the decision to levy the tax had been made under this Part, until the scale of tax is altered pursuant to section 186, and every notice in the form set out in Schedule 3 of the Local Authorities (Petroleum Tax) Act 1970 given by a local authority under section 10(a) of that Act shall continue in force after the commencement of this Part as if it were a notice given under this Act in the form set out in Schedule 8.

              3. Every reference in an enactment or document to the local authorities petroleum tax must, unless the context otherwise requires, be read as a reference to the local authorities fuel tax.

              Compare
              • 1970 No 134 s 4
              Notes
              • Section 185: replaced, on , by section 2 of the Local Government Amendment Act (No 3) 1977 (1977 No 122).
              • Section 185 heading: amended, on , by section 7(1) of the Local Government Act 1974 Amendment Act 2008 (2008 No 63).
              • Section 185(1): amended, on , by section 7(2) of the Local Government Act 1974 Amendment Act 2008 (2008 No 63).
              • Section 185(1): amended, on , by section 7(3) of the Local Government Act 1974 Amendment Act 2008 (2008 No 63).
              • Section 185(2)(b): amended, on , by section 7(3) of the Local Government Act 1974 Amendment Act 2008 (2008 No 63).
              • Section 185(3): amended, on , by section 7(4) of the Local Government Act 1974 Amendment Act 2008 (2008 No 63).
              • Section 185(3)(a): amended, on , by section 7(5) of the Local Government Act 1974 Amendment Act 2008 (2008 No 63).
              • Section 185(3)(b): amended, on , by section 7(5) of the Local Government Act 1974 Amendment Act 2008 (2008 No 63).
              • Section 185(3A): inserted, on , by section 7(6) of the Local Government Act 1974 Amendment Act 2008 (2008 No 63).
              • Section 185(5): inserted, on , by section 7(7) of the Local Government Act 1974 Amendment Act 2008 (2008 No 63).