Local Government (Rating) Act 2002

8

8 Non-rateable land

(1) The land described in Part 1 of Schedule 1 is non-rateable.

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(3) Subsections (1) and (2) are subject to section 9.

9

Non-rateable land liable for certain rates

Land to which section 8 applies is rateable for the purpose of setting a targeted rate if—

(a)  the rate is set solely for water supply, sewage disposal, or refuse collection; and

(b)  the service referred to in paragraph (a) is provided in relation to the land.

Part 4

Rating of Māori freehold land

91

Liabilityof Māori freeholdland for rates

Except where this Part otherwise provides, Māori freehold land is liable for rates in the same manner as if it were general land.

92

Recording name of ratepayer

(1)        If Māori freehold land is owned legally and beneficially by 1 or 2 owners, the names of the owners must be entered as ratepayers in the rating information database and the district valuation roll.

(2)        If an entire rating unit that comprises Māori freehold land in multiple ownership is leased, the name of the lessee must be entered as the ratepayer in the rating information database and the district valuation roll, unless the lessor advises the local authority, or the lessee produces proof, that the lease provides for the lessor to be liable to pay the rates.

(3)        If an entire rating unit that comprises Māori freehold land in multiple ownership is subject to an occupation order made by the Māori Land Court under section 328 of Te Ture Whenua Māori Act 1993 (or an equivalent order made under a former provides for the owners or trustees, as the case may be, to be liable to pay the rates.

(4)        If subsection (2) or subsection (3) do not apply, the following names or descriptions must be entered as ratepayers in the rating information database and the district valuation roll:

(a)        for Māori freehold land owned by more than 2 persons who are not trustees, the words “the owners”;

(b)     for Māori freehold land vested in trustees, the names and designations of the trustees.

(5)        For the purposes of this Part,—

lease includes a tenancy at will, and any other tenancy that confers a leasehold interest upon the tenant, whether at law or in equity trustee includes a body corporate constituted under Part 13 of Te Ture Whenua Māori Act 1993.

(6)        Subsection (1) is subject to section 11.

(7)        Subsections (2), (3), and (4) override section 11.

93

Limitation on trustee liability

If trustees are liable to pay the rates on rateable Māori freehold land,—

(a)        the rates must be paid out of income derived from the land and received by the trustees for the beneficial owners of the land; and

(b)        the trustees are liable for rates only to the extent of the money derived from the land and received by the trustees on behalf of the beneficial owner or owners.

94

Appointment of person to receive notices

(1)        Unless section 92(2) applies, or the land is vested in trustees, this section applies to rateable Māori freehold land in multiple ownership.

(2)        Unless it would be unreasonable or impracticable to do so, the Māori Land Court, on application by the local authority, must appoint one of the owners, or an agent of the owners, to receive rates assessments and rates invoices for Māori freehold land in multiple ownership.

(3)        The name of the owner or agent appointed under subsection (2) must be entered as the ratepayer in the rating information database and the district valuation roll, followed by the words “(court appointee)”.

95

Effect of appointment of owner or agent

(1)        An appointment of an owner or agent under section 94(2) applies solely for the purpose of section 94.

(2)        The entry of the name of an owner or agent appointed under section 94 as a ratepayer in the district valuation roll does not create or confer an estate or interest in the land on that person for any purpose.

(3)        If there has been an appointment under section 94(2), the rates assessment must be delivered to the appointee under section 44.

(4)        The delivery of a rates assessment under section 44 to an appointee does not make the appointee liable for the rates on the relevant land, except to the extent that the person would otherwise be liable.

96

Person actually using land liable for rates

(1)        A person actually using Māori freehold land in multiple ownership that is not vested in a trustee is liable for the rates on that land.

(2)        For the purposes of this Part, person actually using land means a person who, alone or with others,—

(a)        leases the land; or

(b)       does 1 or more of the following things on the land for profit or other benefit:

(i)         resides on the land:

(ii)        depastures or maintains livestock on the land:

(iii)       stores anything on the land:

(iv)       uses the land in any other way.

(3)        If there is a person actually using the land, subsection (1) applies whether or not—

(a)        the person actually using the land is one of the owners of the land; or

(b)       a person has also been appointed under section 94(2) to receive the rates assessment and the rates invoice for the land.

(4)        This section overrides section 12.

97

Rates assessment delivered to person actually using land

(1)        If section 96 applies, the rates assessment and rates invoice must be delivered to the person actually using the rateable Māori freehold land.

(2)        A person to whom section 96 applies and who is actually using part of the rateable Māori freehold land during a financial year must be treated as having used the whole of that land for the whole of that financial year unless that person establishes otherwise.

(3)        This section overrides sections 44 and 46.

98

Recoveryof unpaid rates from person actually using land

In proceedings under section 63 for the recovery of unpaid rates against a person to whom section 96 applies, the court may give judgment for a proportion of the unpaid rates if the court—

(a)        considers that in the circumstances it is reasonable to do so; and

(b)       is satisfied that—

(i)         the person did not actually use the whole of the rating unit for which the rates are claimed for the relevant financial year; and

(ii)      the amount of the rates payable is disproportionately large compared to a reasonable rental or payment for the use.

99

Application for chargingorder

(1)        If the rates payable on rateable Māori freehold land are unpaid 6 months after the due date, the local authority may apply to the Māori Land Court for an order charging the unpaid rates against the land.

(2)        No application under subsection (1) may be made for an order charging a sum of less than $50.

(3)        An application under subsection (1) may not be made later than 6 years after the date on which—

(a)        the rates became due in that financial year in the case of rates payable in 1 payment in a financial year; or

(b)       the last payment of rates became due in that financial year in the case of rates payable by more than 1 payment in a financial year.

(4)        Section 82 of Te Ture Whenua Māori Act 1993 does not apply to a charging order made under this Part.

101

Powers of Māori Land Court to make charging order

(1)  If the Māori Land Court is satisfied, after hearing an application made under section 99, that the rates are payable and have been unpaid for more than 6 months since the due date, the court must make a charging order against the land in favour of the local authority for the amount of the unpaid rates and the cost of obtaining the charging order.

(2)  Despite subsection (1), the court must not make an order unless it is satisfied,—

(a)  if the land is vested in trustees, that all reasonable steps have been taken by the local authority to obtain payment of the rates from the trustees; or

(b)  if a person is liable to pay the rates because section 96 applies, that—

(i)  the local authority has taken proceedings against that person to recover judgment for all or some of the rates and has been unable to recover the amount of the judgment; or

(ii)  having regard to all the circumstances of the case, those proceedings are unlikely to result in the rates being recovered.

(3) Subsection (2) does not override section 108

104

Effect of charging order

If a charging order is made under section 101, no owner may deal with the land except—

(a)        with the consent of the local authority; or

(b)        with the leave of the Māori Land Court.

105

Charging order in forceuntil discharged

(1)        A charging order made against Māori freehold land under section 101 (or under the corresponding section of a former Act) is in force until it is discharged.

(2)        Subsection (1) does not override section 113 of this Act or the Limitation Act 2010.

106

Consolidation of charging orders

The Māori Land Court may consolidate more than 1 order against the same land into 1 order for the total amount of rates due and discharge previous charging orders.

107

Charging order apportioned if land partitioned

(1)        If a rating unit subject to a charging order made under section 101 is partitioned, the charging order must be apportioned according to the area of each partition.

(2)        Despite subsection (1), the Māori Land Court, in its discretion, may make an order that apportions the charge in any other manner that it considers fair and equitable.

108

Māori Land Court may enforce charging order

(1)       If a charging order made under section 101 remains unsatisfied for 6 months, the local authority may apply to the Māori Land Court to enforce the charging order under subsection (2).

109

Scope of order

An order made under section 108(2)—

(a)  must provide for the receiver or trustees, as the case may be, to satisfy the charging order; and

(b)  may authorise the receiver or trustees, as the case may be, on behalf of the owners, to recover—

(i)  money from any other person for the past use of the land by that person; or

(ii)  the amount of rates payable for that land during that person’s use of the land.

110

Cancellationof order to enforce charging order

The Māori Land Court must cancel an order made under section 108(2) if, within 2 months after the making of that order, an owner of the land satisfies the court that—

(a)        all outstanding rates have been paid; and

(b)       proper provision has been made for the payment of future rates.

111

Māori Land Court may make order for payment

(1)      If the Māori Land Court has made a charging order under section101, the court may, on application from the local authority, make an order for the payment of unpaid rates by the Māori Trustee or any other person who holds, or is entitled to receive, on trust for the owners of the land, any money derived from the land.

112

Discharge ofcharging order in full or in part

(1)        A charging order made under section 101 must be discharged if—

(a)        the rates for the land subject to the charging order have been paid; or

(b)       the rates have been remitted by the local authority under section 85.

(2)        If subsection (1) applies, either—

(a)        the Māori Land Court must, by order of the court, discharge the charging order; or

(b)       the local authority must discharge the charging order in writing.

(3)        If the rates are paid in part or are remitted in part, the Māori Land Court or the local authority, as the case may be, must discharge the charging order in proportion to the amount of the rates paid or the amount for which the rates are remitted.

113

Notation and registration of discharge

(1)        If a discharge of a charging order is granted under section 112, the Registrar of the Māori Land Court must endorse the charging order,—

(a)        if the discharge relates to the full amount of the unpaid rates, as being discharged in full; and

(b)        if the discharge relates to part of the unpaid rates, as being partially discharged, both as to the amount of the rates remaining unpaid and the portion of the land affected by the charging order.

(2)        A discharge referred to in section 112 must be registered in accordance with the provisions of section 123 or section 124 of

Te Ture Whenua Māori Act 1993, as the case may require, with any necessary modifications.

(3)      In the case of a partial discharge, the charging order must be registered only as to the balance of the money and the residue of the land affected.

114

Remission of rates

(1)        A local authority may remit all or part of the rates (including penalties for unpaid rates) on Māori freehold land if—

(a)        its policy on the remission and postponement of rates on Māori freehold land adopted under section 102(1) of the Local Government Act 2002 includes provision for the remission of the rates; and

(b)       the local authority is satisfied that the conditions and criteria in the policy are met.

(2)        Sections 85(2) and 86 apply to a remission made under subsection (1).

(3)        This section does not limit the application of section 85 to Māori freehold land.

115

Postponement of requirement to pay rates

(1)        A local authority must postpone the requirement to pay all or part of the rates on Māori freehold land (including penalties for unpaid rates) if—

(a)        its policy on the remission and postponement of rates on Māori freehold land adopted under section 102(1) of the Local Government Act 2002 includes provision for the postponement of the requirement to pay rates; and

(b)       the ratepayer has applied in writing for a postponement; and

(c)        the local authority is satisfied that the conditions and criteria in the policy are met.

(2)        Sections 87(2), and 88 to 90 apply to postponements made under subsection (1).

(3)        This section does not limit the application of section 87 to Māori freehold land.

116

Exemption of Māori freehold land from rates

(1)        The Governor-General, by Order in Council made on the recommendation of the Māori Land Court and with the consent of the local authority in whose district the land is situated, may exempt Māori freehold land, as specified in the order, from some or all liability for rates.

(2)        An order made under subsection (1) may, at any time, be varied or cancelled by Order in Council.

(3)        In determining whether to consent to an order under subsection (1) or whether to seek an order under subsection (2), the local authority must consider—

(a)        the provisions of the policy on the remission and postponement of rates on Māori freehold land adopted by the local authority under section 102(1) of the Local Government Act 2002; and

(b)       the objectives set out in Schedule 11 of the Local Government Act 2002.

117

Effect of exemption

(1)        An order made under section 116 may—

(a)        apply to specified Māori freehold land or to any specified class of that land; and

(b)       release the persons liable from liability for rates that were unpaid before the order was made.

(2)        If an order is made under section 116, the local authority must write off any rates referred to in subsection (1)(b).

Schedule 1

Part 1 Land fully non-rateable

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10        Land that does not exceed 2 hectares and that is used as—

(a)        a cemetery, crematorium, or burial ground, within the meaning of section 2(1) of the Burial and Cremation Act 1964 (except a burial ground or crematorium that is owned and conducted for private pecuniary profit):

(b)       a Māori burial ground.

11        Māori customary land.

12        Land that is set apart under section 338 of Te Ture Whenua Māori Act 1993 or any corresponding former provision of that Act and

(a)        that is used for the purposes of a marae or meeting place and that does not exceed 2 hectares; or

(b)       that is a Māori reservation under section 340 of that Act.

13        Māori freehold land that does not exceed 2 hectares and on which a Māori meeting house is erected.

14        Māori freehold land that is, for the time being, non-rateable by virtue of an Order in Council made under section 116 of this Act, to the extent specified in the order.

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