This Act may be cited as the Land Tax Amendment Act 1989, and shall be read together with and deemed part of the Land Tax Act 1976 (hereinafter referred to as the principal Act).

(2)

Except as provided in sections 8 and 9 of this Act, this Act shall apply with respect to the land tax for the year of assessment commencing on the 1st day of April 1990 and for every subsequent year.

2 Interpretation

(1)

Section 2 of the principal Act is hereby amended by repealing the definitions of the terms “energy” (as inserted by section 5(4) of the Land Tax Amendment Act (No. 2) 1986), “friendly society” (as amended by section 161(1) of the Friendly Societies and Credit Unions Act 1982 and section 2(1) of the Land Tax Amendment Act (No. 2) 1986), and “service organisations” (as inserted by section 2(2) of the Land Tax Amendment Act (No. 2) 1986).

(2)

Section 2 of the principal Act is hereby further amended by adding to the definition of the term “local authority” (as substituted by section 8(3) of the Local Government Amendment Act 1979) the following words:

“but does not include—

“(a)

Any local authority trading enterprise (as defined in section 594b of the Local Government Amendment Act 1974); or

“(b)

Any airport company within the meaning of the Airport Authorities Act 1966; or

“(c)

Any port company within the meaning of the Port Companies Act 1988; or

“(d)

Any energy supply operation to which section 197c of the Income Tax Act 1976 applies:”.

(3)

Section 2 of the principal Act is hereby further amended by adding to the definition of the term “public authority” the words “; but does not include a State enterprise listed in the First Schedule or the Second Schedule to the State-Owned Enterprises Act 1986:”.

(4)

The following enactments are hereby consequentially repealed:

(a)

So much of the Sixth Schedule to the Friendly Societies and Credit Unions Act 1982 as relates to the Land Tax Act 1976:

(b)

Sections 2 and 5(4) of the Land Tax Amendment Act (No. 2) 1986.

3 Act to bind the Crown

The principal Act is hereby amended by inserting, after section 2, the following section:

“2a

Except as otherwise provided in this Act, this Act shall bind the Crown.”

4 Land tax to be levied on total land value, subject to exemption

(1)

The principal Act is hereby amended by repealing section 11, and substituting the following section:

“11

“(1)

Subject to subsection (2) of this section and the other provisions of this Act, land tax shall in the case of each owner be levied at the rate or rates aforesaid on the total land value of all land owned by the owner, other than land that is exempt from land tax under this or any other Act.

“(2)

Land tax shall not be levied on an owner where the total land value of land owned by the owner (other than land that is exempt from land tax) does not exceed $10,000.”

(2)

Section 13 of the principal Act is hereby amended by repealing subsection (3), and substituting the following subsection:

“(3)

No joint owner of land shall be entitled under this section to the benefit of the exclusion contained in section 11(2) of this Act in respect of any joint estate unless the total land value of the joint estate does not exceed $10,000.”

(3)

The principal Act is hereby further amended by repealing section 15.

(4)

Section 23 of the principal Act is hereby amended by repealing subsection (3).

5 Removal of differential rate of tax for absentee taxpayers

(1)

The principal Act is hereby amended by repealing section 26.

(2)

Section 23(2) of the principal Act is hereby consequentially amended by omitting the words or his absence from New Zealand,”.

(3)

Section 3 of the Land Tax Amendment Act 1977 is hereby consequentially repealed.

6 Exemption of certain classes of land

(1)

The principal Act is hereby amended by repealing section 27, and substituting the following section:

“27

“(1)

Land shall be exempt from land tax in the following cases, and to the following extent:

“(a)

Land forming any National Park within the meaning of the National Parks Act 1980:

“(b)

Land vested in the Crown or owned by any public authority and forming any domain, recreation reserve, historic reserve, scenic reserve, nature reserve, scientific reserve, Government purpose reserve, or any other type of reserve within the meaning of the Reserves Act 1977, and including any land forming part of a conservation area, any land being managed pursuant to sections 61 and 62 of the Conservation Act 1987, any lands of the Crown or a public authority that comprise a wildlife management reserve, wildlife refuge, or wildlife sanctuary within the meaning of the Wildlife Act 1953, and any flood ponding area, foreshore reserve around any river, lake, or the sea, any foreshore, the bed of the territorial sea, the bed of any navigable lake or navigable river, and any land vested in the Crown by virtue of the Land Subdivision in Counties Act 1946:

“(c)

Land vested in the Crown or owned by any public authority on which is situated any vice-regal residence or Parliament Buildings:

“(d)

Land vested in the Crown or owned by any public or local authority that is used for a purpose specified in paragraph (i) or paragraph (k) of this subsection:

“(e)

Land vested in the Crown or owned by any public or local authority that is formed and used for a road, limited access road, access way, or service lane:

“(f)

Land occupied by the New Zealand Railways Corporation that is used as part of the permanent way of any railway, being land upon which is sited any railway line together with such contiguous areas of land as are occupied incidentally thereto and are not otherwise used, and not being—

“(i)

Any railway yard or marshalling yard; or

“(ii)

Land that is used, or upon which is sited any structure or premises used, for the loading or unloading of goods or passengers on to or from any train situated on a railway line; or

“(iii)

Land that is used for administrative or other ancillary purposes:

“(g)

Crown land or other land reserved, set apart, or granted by the Crown as endowments and occupied for pastoral purposes:

“(h)

Maori customary land within the meaning of the Maori Affairs Act 1953:

“(i)

Land owned by or in trust for any society or trustees and used by the society or trustees (otherwise than for the private pecuniary profit of any individual) as the site of a public library, public museum, public cemetery or burial ground, public recreation ground, or public garden, domain, or reserve:

“(j)

Land owned by or in trust for any society or institution established exclusively for charitable purposes, and not carried on for the private pecuniary profit of any individual, if the land is used as a site for the purposes of that society or institution:

“Provided that if any such site exceeds 7 hectares in extent this exemption shall be limited to 7 hectares thereof to be selected by the Commissioner:

“(k)

Land owned or occupied by, or in trust for, any society or association of persons, whether incorporated or not, if the land is used solely or principally for games or sports other than horse racing, greyhound racing, or trotting, and is not used for the private pecuniary profit of any individual:

“(l)

Land owned or occupied by any racing club (as defined in section 2 of the Racing Act 1971) or by any company, all the shares in which are owned by any such racing club or racing clubs, if such land is used solely or principally for the purposes of horse racing, greyhound racing, or trotting:

“(m)

Land owned by or in trust for a society incorporated under the Agricultural and Pastoral Societies Act 1908 and used by that society as a showground or place of meeting:

“(n)

Land owned by or in trust for a society incorporated under the Libraries and Mechanics’ Institutes Act 1908 and used by that society as a site for the purposes of the society:

“(o)

Land used for the purposes of a university, college, high school, secondary school, or other public educational institution in New Zealand not carried on for the private pecuniary profit of any individual:

“(p)

Land used solely or principally for any of the following purposes or for any combination of the following purposes:

“(i)

Animal husbandry (including poultry-keeping, bee-keeping, and the breeding of horses):

“(ii)

Growing fruit, vegetables, or other crop-producing plants:

“(iii)

Horticulture:

“(iv)

Viticulture:

“(v)

Forestry or silviculture:

“Provided that this paragraph shall not apply where any such use is a merely temporary use of land that is primarily intended to be used for a purpose not specified in this paragraph:

“(q)

Land which is used principally as the site of any residence (being a house, flat, townhouse, home unit, or similar dwelling):

“Provided that where the area of land on which a residence is situated is greater than—

“(i)

4,500 square metres; or

“(ii)

An area that would be reasonably appropriate for residential purposes, having regard to the size and character of the residence or residences on the land, and to the nature of the land,—

such proportion of the value of the land as the Commissioner determines is not attributable to residential purposes shall not be exempt under this paragraph:

“(r)

Land which is used principally as the site for any establishment (not being an establishment that caters principally for temporary or transient accommodation) in the nature of—

“(i)

A boardinghouse, lodginghouse, or hostel; or

“(ii)

A private residential hotel (not being premises in respect of which a hotel premises licence or a tourist-house premises licence is in force under the Sale of Liquor Act 1962):

“(s)

Land which is used principally as the site of any home for the aged (within the meaning of section 120a(3) of the Health Act 1956):

“(t)

Land to the extent that it is used as the site for a building (including servicing and landscaped areas associated with the building) that is classified by the New Zealand Historic Places Trust in terms of paragraph (a) or paragraph (b) of section 35(1) of the Historic Places Act 1980 (except where the classification relates solely to the facade of a building).

“(2)

The benefit of the exemptions provided by paragraphs (a) to (n) of subsection (1) of this section shall in each case be limited to the owner specified in those paragraphs, and shall not extend to any other person who is the owner of any estate or interest in the land (whether as purchaser, lessee, or otherwise howsoever), nor shall it extend to land held by an owner specified in the said paragraphs in trust for an owner not so specified.”

(2)

The following enactments are hereby consequentially repealed:

(a)

Section 3(1) and (2) of the Land Tax Amendment Act 1981:

(b)

Section 5(1) and (2) of the Land Tax Amendment Act (No. 2) 1986:

(c)

So much of Part A of the First Schedule to the State-Owned Enterprises Amendment Act 1987 as relates to the Land Tax Act 1976:

(d)

Section 44 of the Building Societies Amendment Act 1987:

(e)

Section 2(1) of the Land Tax Amendment Act (No. 2) 1988.

7 Removal of concessionary rate of tax in certain cases

(1)

The principal Act is hereby amended by repealing section 28 and section 28a (as inserted by section 6(1) of the Land Tax Amendment Act (No. 2) 1986).

(2)

The following enactments are hereby consequentially repealed:

(a)

Section 3(3) of the Land Tax Amendment Act 1981:

(b)

Section 6(1) of the Land Tax Amendment Act (No. 2) 1986:

(c)

Section 3 of the Land Tax Amendment Act (No. 2) 1988.

8 New rates of land tax

(1)

The principal Act is hereby amended by repealing the Schedule (as inserted by section 4 of the Land Tax Amendment Act 1981), and substituting the Schedule set out in the First Schedule to this Act.

(2)

The Land Tax Amendment Act 1981 is hereby consequentially amended by repealing section 4 and the Schedule.

(3)

This section shall apply with respect to the land tax for the year of assessment commencing on the 1st day of April 1989 and for every subsequent year.

9 Confirmation of rate of land tax for year commencing 1 April 1989

(1)

For the year of assessment commencing on the 1st day of April 1989, land tax shall be assessed, levied, and paid pursuant to Part II of the principal Act at the rate specified in Part A of the Schedule to that Act (as substituted by section 8 of this Act).

(2)

Section 2(1) of the Finance Act (No. 2) 1988 is hereby repealed.

10 Amendments to other Acts to remove exemption from land tax

The enactments specified in the Second Schedule to this Act are hereby amended in the manner indicated in that Schedule.

SCHEDULES

FIRST SCHEDULE New Schedule to Principal Act

Section 8(1)

“SCHEDULE “Rate of Land Tax

Section 2

Part A Rate for Year Commenting 1 April 1989

The rate of land tax for the year of assessment commencing on the 1st day of April 1989 shall be 1.5c for every $1 of land value on which land tax is payable.

Part B Rate for Year Commenting 1 April 1990 and Subsequent Years

The rate of land tax for the year of assessment commencing on the 1st day of April 1990 and for every subsequent year shall be lc for every $1 of land value on which land tax is payable.”

SECOND SCHEDULE Enactments Amended

Section 10

Title of Act	Amendment
1944, No. 15—The Earthquake and War Damage Act 1944 (R.S. Vol. 6, p. 207)	By omitting from section 24 the words “of land tax and”, and also the words “the Land Tax Act 1976 and”.
1948, No. 51—The Armed Forces Canteens Act 1948 (R.S. Vol. 1, p. 143)	By omitting from section 16(1) the words “land tax and”.
1950, No. 20—The Medical Research Council Act 1950 (R.S. Vol. 10, p. 75)	By omitting from section 20(1) the words “land tax and”.
1953, No. 10—The Primary Products Marketing Act 1953 (R.S. Vol. 4, p. 201)	By repealing section 16.
1961, No. 5—The Dairy Board Act 1961 (Reprinted 1976, Vol. 4, p. 3337)	By repealing section 57 (as substituted by section 33(2) of the Income Tax Amendment Act (No. 5) 1988).
1963, No. 70—The Fishing Industry Board Act 1963 (Reprinted 1976, Vol. 5, p. 3847)	By repealing section 26.
1971, No. 33—The Apple and Pear Marketing Act 1971 (R.S. Vol. 23, p. 1)	By repealing section 39.
1977, No. 92—The Wool Industry Act 1977	By repealing section 58.
1977, No. 102—The Queen Elizabeth the Second National Trust Act 1977	By repealing section 30(5).
1981, No. 110—The Finance Act (No. 2) 1981	By repealing section 3.
1982, No. 138—The Pork Industry Board Act 1982	By repealing section 29.
1987, No. 93—The New Zealand Horticulture Export Authority Act 1987	By repealing section 59.
1988, No. 225—The Income Tax Amendment Act (No. 5) 1988	By repealing section 33(2) and the Second Schedule.

This Act is administered in the Inland Revenue Department.

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Land Tax Amendment Act 1989