Local Government (Rating) Amendment Act 2006

1: Title
This Act is the Local Government (Rating) Amendment Act 2006.
2: Commencement
This Act comes into force on the day after the date on which it receives the Royal assent.
3: Principal Act amended
This Act amends the Local Government (Rating) Act 2002
4: Interpretation
1: Section 5 capital project section 117A lump sum contribution section 117A .
2: The definition of rate section 5 ; but
c: does not include a lump sum contribution .
5: Rating information database
Section 27(4) ; and
c: any information required under section 117K(1)
6: Objections to rating information database
Section 29
4: A person may not object under this section to the correctness or otherwise of any information contained in the database that relates to an objection to the valuation of a rating unit under the Rating Valuations Act 1998
5: Subsection (4)
7: Rates records
Section 37 subsection (1)
1: A local authority must keep and maintain a rates record for each rating unit in its district that clearly shows—
a: the amount of the ratepayer's liability for rates in respect of that unit; and
b: any information required under section 117K(2)
8: New section 41A inserted
The following section is inserted after section 41
41A: Amended assessment to give effect to objection to valuation under
Rating Valuations Act 1998
1: A local authority must issue an amended rates assessment for a rating unit if—
a: it has issued a rates assessment in respect of the rating unit for a financial year; and
b: after issuing the assessment, it has—
i: altered the information in relation to the rating unit in its district valuation roll under section 39 of the Rating Valuations Act 1998
ii: consequentially altered the information in relation to the rating unit in its rating information database for that year; and
c: the alteration in the database gives rise to a difference between the amount of rates that was originally assessed and the amount that would have been payable for that year if the information entered in the database had been the information referred to in paragraph (b)(ii)
2: An amended assessment must be issued—
a: no later than 1 month after the alteration concerned was made to the rating information database; or
b: in the case of a regional council to which section 27(7)
3: If the amended assessment is for an amount that is less than the amount originally assessed, the local authority must refund to the person who paid the rates any rates paid in excess of the amount payable on the amended assessment.
4: However, a local authority is not required to make a refund if it does not have the contact details of the person who paid the rates.
5: If the amended assessment is for an amount that is more than the amount originally assessed, the local authority may recover the excess rates payable on the amended assessment.
6: However, a local authority may only recover the amount if the person who paid the original assessment is also the person to whom the amended assessment is issued.
9: Contents of rates assessment
Section 45 subsection (1)
1A: If the ratepayer has elected to make a lump sum contribution to a local authority's capital project, the rates assessment must also identify the targeted rates for the financial year for which, as a result of the election, no liability attaches to the rating unit.
10: New Part 4A inserted
The following Part is inserted after Part 4
4A: Lump sum contributions
117A: Interpretation
In this Part, unless the context otherwise requires,— capital project
a: means a project or work the expenditure for which is not recognised by generally accepted accounting practice as being operating expenditure; and
b: includes a loan in relation to a project or work capital project funding plan funding plan section 117B(3) election section 117H(1) eligible ratepayer invitation section 117F lump sum contribution
117B: Local authority may fund capital project by lump sum contributions
1: A local authority may fund, or partially fund, a capital project by lump sum contributions from its ratepayers.
2: Subsection (1)
3: A funding plan must—
a: commence at the start of a financial year; and
b: contain the matters required under section 117E(1)
c: be adopted as part of the local authority's—
i: annual plan; or
ii: long-term council community plan (or as an amendment to its long-term council community plan).
4: In developing a funding plan, a local authority must give equal weight to the financial interests of those ratepayers who may elect to make a lump sum contribution and those who may decide not to do so.
5: This section is subject to section 117C
117C: Requirement to pay lump sum contribution must not be imposed on ratepayers
No local authority may require a ratepayer to pay a lump sum contribution to a capital project unless—
a: it has invited the ratepayer to do so under section 117F
b: the ratepayer has elected to do so under section 117H
117D: Consequences for local authority if capital project funding plan adopted
1: Once a local authority has adopted a capital project funding plan for a capital project,—
a: it must not fund the project in any way other than in accordance with the funding plan; and
b: the proceeds from any targeted rates collected under the funding plan must not be used for any purpose other than the project.
2: Subsection (1) Capital project funding plans
117E: Contents of capital project funding plan
1: A local authority must include the matters set out in Part 1 of Schedule 3A
2: A local authority may include any other matter in a funding plan—
a: that it sees fit; and
b: that is not inconsistent with this Act or any other enactment. Invitations to make lump sum contribution
117F: Invitations to make lump sum contribution
1: For the purposes of section 117B
2: An invitation must—
a: be in writing; and
b: be delivered to each eligible ratepayer not less than 1 month before the date specified in the invitation as being the final date for the ratepayer to elect to make a lump sum contribution; and
c: contain the matters required under section 117G(1)
3: A local authority must not include any term in an invitation that would have the effect of—
a: offering different terms to individual eligible ratepayers, a class of eligible ratepayers, or classes of eligible ratepayers; or
b: inviting lump sum contributions from its eligible ratepayers on terms that are inconsistent with the funding plan for the capital project concerned.
117G: Contents of invitation
1: An invitation must—
a: contain all the terms that would apply to the eligible ratepayer if the ratepayer elected to make a lump sum contribution in respect of the rating unit; and
b: include any other information that the local authority considers necessary to enable the eligible ratepayer to make an informed choice about making a lump sum contribution to the project.
2: Without limiting subsection (1) Part 2 of Schedule 3A Elections to make lump sum contribution
117H: Eligible ratepayer may elect to make lump sum contribution
1: Having received an invitation, an eligible ratepayer may elect to make a lump sum contribution to the capital project concerned in respect of the rating unit concerned.
2: An election must be—
a: in writing; and
b: signed by the ratepayer or an authorised representative of the ratepayer; and
c: returned to the local authority concerned no later than the date specified in the invitation as being the final date for a ratepayer to elect to make a lump sum contribution.
3: A rating unit in respect of which the eligible ratepayer does not elect to make a lump sum contribution will be liable for the targeted rates specified in the invitation that relate to the category of rating unit to which the unit belongs and—
a: that apply to a rating unit in respect of which the ratepayer has not elected to make a lump sum contribution; and
b: that apply to a rating unit whether or not the ratepayer in respect of the rating unit has elected to make a lump sum contribution.
117I: Lump sum contribution invoice
1: This section applies to a rating unit in respect of which the eligible ratepayer has elected to make a lump sum contribution to a local authority's capital project.
2: The local authority must deliver to the ratepayer in respect of the rating unit—
a: an invoice for the full contribution, if the lump sum contribution is to be paid in one amount; or
b: an invoice for each instalment, if the lump sum contribution is to be paid in instalments.
3: An invoice must be delivered to the ratepayer no later than 1 month before the date on which payment is due (being the date specified in the invitation concerned).
4: An invoice—
a: must be a separate document from any rates invoice delivered to the ratepayer; but
b: may be delivered at the same time as the rates invoice.
117J: Consequences for eligible ratepayer (and any future ratepayers) of election to make lump sum contribution
1: A rating unit in respect of which the eligible ratepayer has elected to make a lump sum contribution for a capital project is not liable for the targeted rates specified in the invitation concerned as being targeted rates that do not apply to the rating unit.
2: The obligations assumed by an eligible ratepayer who elects to make a lump sum contribution in respect of a rating unit—
a: run with the land; and
b: are binding on every person who is for the time being the ratepayer responsible for the rating unit.
3: Subsection (2)
a: the date that the contribution is paid in full; or
b: the date that any recalculation of the contribution is made. Local authority must record certain matters
117K: Local authority must record elections and lump sum contributions in rating information database and rates records
1: A local authority must record the following information in its rating information database for each rating unit in respect of which an eligible ratepayer has elected to make a lump sum contribution:
a: that an election has been made; and
b: that the rating unit is not liable for the targeted rates specified in the invitation concerned as being targeted rates that do not apply to the rating unit.
2: A local authority must record the following information in its rates records for each rating unit in respect of which an eligible ratepayer has elected to make a lump sum contribution:
a: that an election has been made; and
b: the terms of the invitation concerned; and
c: the information relating to due dates and amounts of payment included in any invoice delivered to the ratepayer under section 117I
d: the date and amount of any lump sum contribution payments made in respect of the rating unit. Change of ownership of rating unit
117L: Local authority must notify new ratepayer of liability in respect of rating unit for lump sum contribution
1: This section applies if—
a: a rating unit is liable for a lump sum contribution; and
b: the ratepayer in respect of the rating unit changes because the local authority is notified,—
i: under section 31
ii: under section 32
iii: under section 33
2: A local authority that is notified of a matter described in subsection (1) section 117K(2)
3: The local authority must also provide to the person a copy of the terms of the election made by the eligible ratepayer as set out in the invitation concerned. Recalculation of lump sum contributions
117M: Recalculation of lump sum contributions
1: A local authority may make 1 recalculation of the lump sum contributions to a capital project.
2: A recalculation must be made in accordance with the factors and methodologies specified in the invitation concerned.
3: A recalculation must not be made until the final cost of the project is known.
4: A local authority must, no later than 1 month after a recalculation,—
a: if the liability from the lump sum contributions decreases, refund the excess to the ratepayer for each rating unit in respect of which a contribution was made; or
b: if the liability from the lump sum contributions increases, deliver an invoice to the ratepayer for each rating unit in respect of which a contribution was made.
5: Any invoice to which subsection (4)(b) Late payment or non-payment of lump sum contribution
117N: Late payment or non-payment of lump sum contribution
1: This section applies if—
a: an eligible ratepayer has elected to make a lump sum contribution to a capital project in respect of a rating unit; and
b: the eligible ratepayer (or any other person who is for the time being the ratepayer) in respect of the rating unit does not pay the contribution, or a contribution instalment, by its due date (including any amount due under section 117M(4)(b)
2: The local authority concerned may either—
a: cancel the election; or
b: recover the amount owing in a court of competent jurisdiction as a debt due.
3: If the local authority cancels the election it must amend the entries in its rating information database and rates records in relation to the rating unit, for each year that it has recorded information under section 117K section 117K(1)(b)
4: The local authority must record any amount paid as a lump sum contribution in respect of the rating unit as a payment of the rates referred to in subsection (3)
a: for the first year that the rating unit was liable for those rates; and
b: as being paid at the date that the lump sum contribution was paid.
5: The local authority must record any surplus amount resulting from the operation of subsection (4) subsection (3)
a: for the next year that the rating unit was liable for those rates; and
b: as being paid at the date that the lump sum contribution was made.
6: The local authority must continue to apply any surplus amount in the manner set out in subsection (5)
a: no surplus remains; or
b: no rates remain unpaid.
7: If, after the operation of subsections (5) and (6)
a: a deficit for any financial year concerned is shown in the rates record, the local authority must treat the amount or amounts as unpaid rates for the purposes of sections 46(2)(i), 57, and 58
b: a surplus remains, the local authority must credit the rates record.
8: Subsection (7)(a) section 85
9: The local authority must apply any credit under subsection (7)(b)
a: pay any arrears owing in respect of the rating unit for 1 or more previous financial years:
b: pay any arrears owing in respect of the rating unit for the current financial year:
c: record a credit in the rates record against future rates in respect of the rating unit.
10: If subsection (9)(c)
a: the ratepayer in respect of the rating unit may apply to the local authority, in writing, for a refund of the credited amount; and
b: the local authority must, as soon as practicable, make the refund.
11: The local authority must issue an amended rates assessment for each year in respect of which it has amended the rates records under this section.
11: New Schedule 3A inserted
The Schedule 3A set out in the Schedule Schedule 3 Transitional provisions
12: Transitional provision in relation to amended rates assessments for errors in rating information database or rates record
The amendments made by sections 6 8 section 29
13: Transitional provision in relation to long-term council community plans for period beginning on 1 July 2006
Any amendments made by this Act that have the effect of requiring an amendment to a long-term council community plan (to ensure that it complies with the requirements of the principal Act, as amended by this Act)
a: do not apply to a long-term council community plan to which section 280 Local Government Act 2002
b: do apply to any amendment made to a long-term council community plan to which section 280 Local Government Act 2002 Amendments to other enactments
14: Amendment to
Auckland War Memorial Museum Act 1996 Section 24 Auckland War Memorial Museum Act 1996
15: Amendments to Local Government Act 2002 consequential to insertion of new Part 4A in principal Act
1: Section 5(1) Local Government Act 2002 capital project section 5 of the Local Government (Rating) Act 2002 lump sum contribution section 5 of the Local Government (Rating) Act 2002
2: Section 96 Local Government Act 2002
5: This section applies subject to Part 4A of the Local Government (Rating) Act 2002
3: Section 97 Local Government Act 2002
3: Nothing in this section applies to a decision of a local authority to fund a capital project by lump sum contributions if the local authority has complied with section 117B(3)(c)(i) of the Local Government (Rating) Act 2002
4: Section 103(2) Local Government Act 2002 paragraph (b)
ba: lump sum contributions: .
5: Clause 10(1)(d) Local Government Act 2002
v: whether lump sum contributions will be invited in respect of the targeted rate; and .
6: Clause 13(d) Local Government Act 2002 ; and
v: whether lump sum contributions will be invited in respect of the targeted rate.