Local Government (Rating of Whenua Māori) Amendment Bill

  • enacted

Local Government (Rating of Whenua Māori) Amendment Bill

Government Bill

226—3

As reported from the committee of the whole House

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Hon Nanaia Mahuta

Local Government (Rating of Whenua Māori) Amendment Bill

Government Bill

226—3

Contents

Key
1Title
2Commencement
3Amendments to Local Government (Rating) Act 2002
4Section 3 replaced (Purpose)
3Purpose
5Section 4 amended (Outline)
6Section 5 amended (Interpretation)
7New section 5A inserted (Transitional, savings, and related provisions)
5ATransitional, savings, and related provisions
8Section 10 replaced (Who is ratepayer?)
10Who is ratepayer?
9Section 12 amended (Liability for rates)
10Section 20 amended (Rating units in common ownership)
11New section 20A inserted (Rating units of Māori freehold land used as a single unit)
20ARating units of Māori freehold land used as a single unit
12Section 27 amended (Rating information database)
13Section 28 amended (Inspection of rating information database)
14Section 28A amended (Inspection of complete rating information database)
15Section 28B amended (Local authority must inform owners of right to withhold certain information from database
16Section 28C amended (Owner entered on database may require local authority to withhold information from database)
17Section 28D repealed (Transitional provision for local authority to establish database)
18Section 29 amended (Objections to rating information database)
19Section 37 amended (Rates records)
20Section 38 amended (Inspection of rates records)
21Section 39 amended (Objection to rates records)
22Section 41 amended (Amended assessment if error in rating information database or rates record is corrected)
23Section 41A amended (Amended assessment to give effect to objection to valuation under Rating Valuations Act 1998)
24Part 3 heading amended (Assessment, payment, and recovery of rates and remission and postponement)
25Section 44 amended (Notice of rates assessment)
26Section 45 amended (Content Contents of rates assessment)
27Section 46 amended (Rates invoice)
28Section 47 amended (Issue of amended rates invoice)
29Section 48 amended (Delivery of rates assessment and rates invoice)
30Section 49 amended (Late delivery of rates invoice)
31Section 51 amended (Combined rates assessment and rates invoice)
32Section 54 amended (Power not to collect small amounts)
33New section 62A inserted (Person actually using certain abandoned general land liable for rates)
62APerson actually using certain abandoned general land liable for rates
34Section 63 amended (Legal proceedings to recover rates)
35New section 65A inserted (Recovery of unpaid rates from person actually using certain land
65ARecovery of unpaid rates from person actually using certain land
36Section 67 amended (Enforcement of judgment)
36AASection 75A amended (Unpaid levy under Infrastructure Funding and Financing Act 2020)
36ASection 77 amended (Sale or lease of abandoned land)
37Section 78 amended (Court may order sale or lease of abandoned land)
38Heading to subpart 2 of Part 3 amended (Remission and postponement)
39New sections 90A to 90D and cross-heading inserted
90AChief executive may write off rates that cannot be recovered
90BChief executive may write off rates of deceased owners of Māori freehold land
90CChief executive may delegate power to write off rates
90DAmount of rates written off to be included in notes to financial statements
40Section 92 amended (Recording name of ratepayer)
41Section 93 amended (Limitation of trustee liability)
42Cross-heading above section 96 replaced
43Section 96 amended (Person actually using land liable for rates)
44Section 97 amended (Rates assessment delivered to person actually using land)
45Section 98 replaced (Recovery of unpaid rates from person actually using land)
98Ratepayer of underlying rating unit not liable for rates on separate rating area
46New sections 98A to 98F and cross-heading inserted
98AHow rating unit on Māori freehold land divided into separate rating areas
98BApportionment of rates for separate rating areas
98CContents of rates assessment for separate rating area
98DWhen separate rating area divided from rating area
98EHow separate rating area ceases to be a separate rating area
98FElection to make lump sum contributions must be made on behalf of underlying rating unit
47Section 114 amended (Remission of rates)
48New section 114A inserted (Remission of rates on Māori freehold land under development)
114ARemission of rates for Māori freehold land under development
49New Schedule 1AA inserted
50Schedule 1 amended
50AAmendments to Infrastructure Funding and Financing Act 2020
50BSection 7 amended (Interpretation)
50CSection 37 amended (Who must pay levy)
50DSection 51 amended (Responsible SPV may correct annual levy resolution)
50ESection 57 amended (When SPV recovers unpaid levy)
50FSection 58 amended (Levy is charge against rating unit)
50GSection 59 amended (Invalidity of levy not ground for refusal to pay levy)
50HSection 61 amended (Rating information database)
50ISection 65 amended (Rates records and objections, etc, to rates records)
50JSection 68 amended (Assessment of levy liability)
50KSection 69 replaced (Rating units in common ownership)
69When responsible levy authority must treat 2 or more rating units as 1 unit for assessing levy
50LSection 70 amended (Levy assessment notified to levypayer)
50MSection 71 amended (Information in levy assessment)
50NSection 73 amended (Further processes for levy assessment and levy invoice)
50OSection 77 amended (Levy remission and levy postponement policies relating to Maori freehold land)
50PSection 78 amended (Remission of levy)
50QNew section 79A and cross-heading inserted
79AWrite-off of levy
50RSection 82 amended (Recovery action generally)
50SSection 83 amended (Legal proceedings to recover levy)
50TSection 91 amended (Excess levy at end of levy period)
50USection 95 amended (Responsible levy authority to inform responsible SPV about previous contributions)
50VSection 96 amended (Responsible SPV may direct responsible levy authority to transfer previous contributions and remit levies)
50WSection 97 amended (Responsible levy authority must refund or return previous contributions if no direction)
51Amendment to Local Government Act 2002
52Section 102 amended (Funding and financial policies)
52ASchedule 1AA amended
53Amendments to Te Ture Whenua Maori Act 1993
54New section 128A inserted (Registrar may advise local authority whether rating units were previously part of same block of Maori freehold land)
128ARegistrar may advise local authority whether rating units were previously part of same block of Maori freehold land
55New section 330B inserted (Obligation to notify territorial authority of occupation order)
330BObligation to notify territorial authority of occupation order
56Amendments to Rates Rebate Act 1973
57Section 2 amended (Interpretation)
57AAmendments to Urban Development Act 2020
57BSection 185 amended (Who must pay rates?)
57CSection 189 amended (Procedure for setting rates)
57DSection 190 amended (Kāinga Ora may set rates again within same financial year)
57ESection 192 amended (Due date or dates for payment)
57FSection 194 amended (When excess rates are refunded to ratepayers)
57GSection 201 amended (Notice of rates assessment)
57HSection 202 amended (Contents of rates assessment)
57ISection 203 amended (Rates invoice)
57JSection 205 amended (When Kāinga Ora may recover unpaid rates)
57KSection 206 amended (Application of Local Government (Rating) Act 2002: calculation, payment, and recovery)
57LSection 207 amended (Remission of rates)
57MSection 208 amended (Recording remitted rates)
57NSection 209 amended (Postponement of requirement to pay rates)
57ONew section 210A and cross-heading inserted
210AWhen Kāinga Ora may write off targeted rates
57PSection 211 amended (Application of Local Government (Rating) Act 2002: rating of Māori freehold land)
57QSection 212 amended (Rating information database to include information on targeted rates)
57RSection 213 amended (Rates records to include information on targeted rates)
58Amendment to Māori Land Court Fees Regulations 2013
59Schedule amended
Legislative history

The Parliament of New Zealand enacts as follows:

1 Title

This Act is the Local Government (Rating of Whenua Māori) Amendment Act 2020.

2 Commencement

This Act comes into force as follows:

(a)

the following provisions come into force on 1 July 2021:

(i)

section 6:

(i)

sections 6 to 8:

(ia)

section 9(1):

(ii)

sections 11 to 23:

(iii)

sections 25 to 32:

(iv)

section 34:

(v)

sections 40 to 46:

(vi)

section 50:

(via)

sections 50B to 50N:

(vib)

section 50O(1)

(vic)

sections 50P and 50Q:

(vid)

sections 50T to 52:

(vii)

sections 56 and 57:

(viii)

sections 57B to 57J:

(ix)

sections 57L to 57O:

(x)

sections 57Q and 57R:

(b)

the rest of this Act comes into force on the day after the date of Royal assent.

Part 1 Amendments to Local Government (Rating) Act 2002

3 Amendments to Local Government (Rating) Act 2002

This Act amends the Local Government (Rating) Act 2002 (the principal Act).

Amendments to Part 1 (preliminary and key provisions)

4 Section 3 replaced (Purpose)

Replace section 3 with:

3 Purpose

The purpose of this Act is to—

(a)

promote the purpose of local government set out in the Local Government Act 2002 by—

(i)

providing local authorities with flexible powers to set, assess, and collect rates to fund local government activities:

(ii)

ensuring that rates are set in accordance with decisions that are made in a transparent and consultative manner:

(iii)

providing for processes and information to enable ratepayers to identify and understand their liability for rates; and

(b)

facilitate the administration of rates in a manner that supports the principles set out in the Preamble to Te Ture Whenua Maori Act 1993.

5 Section 4 amended (Outline)

In section 4(4)(b), replace “remission of rates and postponement of the requirement to pay rates” with “remission of rates, postponement of the requirement to pay rates, and the write-off of rates”.

6 Section 5 amended (Interpretation)

(1)

In section 5, insert in their appropriate alphabetical order:

dwelling means a building or part of a building occupied as residential accommodation and includes—

(a)

a garage, a shed, and any other building used in connection with the dwelling; and

(b)

the land attached or appurtenant to the dwelling and commonly used in connection with the dwelling

person actually using land or person actually using a rating unit 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

residual rating area means the part of a rating unit (if any) that remains after 1 or more separate rating areas are divided from the rating unit

separate rating area means land that has become a separate rating area under section 98A

underlying rating unit means a rating unit which has been divided into separate rating areas under section 98A

(2)

In section 5, definition of rates assessment, after “rating unit”, insert “or separate rating area”.

(3)

In section 5, definition of rates invoice, after “rating unit”, insert “or separate rating area”.

7 New section 5A inserted (Transitional, savings, and related provisions)

After section 5, insert:

5A Transitional, savings, and related provisions

The transitional, savings, and related provisions set out in Schedule 1AA have effect according to their terms.

8 Section 10 replaced (Who is ratepayer?)

Replace section 10 with:

10 Who is ratepayer?

For the purposes of this Act, a ratepayer is,—

(a)

in relation to a rating unit, the person who is named as a ratepayer in the rating information database and the district valuation roll for the rating unit:

(b)

in relation to a separate rating area, the person who is named as the ratepayer in the rating information database for the separate rating area.

9 Section 12 amended (Liability for rates)

(1)

After section 12(1), insert:

(1A)

The ratepayer for a separate rating area is liable to pay the rates that are due on the separate rating area.

(2)

In section 12(2), replace “and 62” with “to 62A.

10 Section 20 amended (Rating units in common ownership)

In section 20, replace “setting” with “assessing”.

11 New section 20A inserted (Rating units of Māori freehold land used as a single unit)

After section 20, insert:

20A Rating units of Māori freehold land used as a single unit

(1)

A person actually using 2 or more rating units of Māori freehold land may apply to the local authority for 2 or more of the rating units to be treated as 1 unit for the purposes of a rates assessment.

(2)

The local authority must treat the rating units as 1 unit for assessing a rate if—

(a)

the units are used jointly as a single unit by the person; and

(b)

the local authority is satisfied the units are derived from, or are likely to have been derived from, the same original block of Māori freehold land, meaning the first Māori land block that was held in an instrument of title and that included the land that became the rating units.

(2A)

For the purposes of subsection (2)(b), it is sufficient evidence that 2 or more rating units of Māori freehold land are derived from the same original block of Māori freehold land if the rating units share a name in common according to the permanent record of the Māori Land Court.

(3)

If a local authority is not satisfied that the units are derived from, or are likely to have been derived from, the same block of Māori freehold land, the local authority—

(a)

may apply to the Registrar of the Māori Land Court for a determination as to whether the rating units are derived from the same original block of Māori freehold land; and

(b)

must do so on the request of the person actually using the units.

(4)

In this section, block has the meaning set out in section 4 of Te Ture Whenua Maori Act 1993.

Amendments to Part 2 (rating information database and rates records)

12 Section 27 amended (Rating information database)

(1)

After section 27(5)(c), insert:

(d)

1 or more separate rating areas being divided from a rating unit under section 98A.

(2)

In section 27(6)(a) and (b), after “unit”, insert “or a separate rating area”.

13 Section 28 amended (Inspection of rating information database)

In section 28(2), after “unit”, insert “or separate rating area” in each place.

14 Section 28A amended (Inspection of complete rating information database)

(1)

In section 28A(2), after “unit”, insert “or separate rating area”.

(2)

In section 28A(3), after “unit”, insert “or separate rating area” in each place.

(3)

In section 28A(6), after “units”, insert “or separate rating areas”.

15 Section 28B amended (Local authority must inform owners of right to withhold certain information from database

(1)

In the heading to section 28B, after owners, insert of rating units and ratepayers for separate rating areas.

(2)

In section 28B, after “owner”, insert “of a rating unit and ratepayer for a separate rating area”.

16 Section 28C amended (Owner entered on database may require local authority to withhold information from database)

(1)

In the heading to section 28C, after Owner insert of rating unit and ratepayer for separate rating area.

(2)

In section 28C(1), after “owner”, insert “of a rating unit or ratepayer for a separate rating area”.

(3)

In section 28C(2), (3)(b), and (4), after “owner”, insert “or ratepayer”.

17 Section 28D repealed (Transitional provision for local authority to establish database)

Repeal section 28D.

18 Section 29 amended (Objections to rating information database)

After section 29(1), insert:

(1A)

A person who is named in the rating information database as the ratepayer for a separate rating area or its underlying rating unit may also object to the information contained in the database on the ground that the apportionment of rates fails to comply with section 98B.

19 Section 37 amended (Rates records)

(1)

In section 37(1), after “for each rating unit”, insert “and separate rating area”.

(2)

In section 37(1)(a) and (b), after “unit”, insert “or separate rating area”.

(3)

In section 37(3), after “unit”, insert “or separate rating area”.

20 Section 38 amended (Inspection of rates records)

(1)

In section 38(1), after “rates record for a rating unit”, insert “or separate rating area”.

(2)

In section 38(1)(d)(i), after “unit”, insert “or separate rating area”.

21 Section 39 amended (Objection to rates records)

In section 39(1)(b), after “unit”, insert “or separate rating area”.

22 Section 41 amended (Amended assessment if error in rating information database or rates record is corrected)

In section 41(1)(a), after “unit”, insert “or separate rating area”.

23 Section 41A amended (Amended assessment to give effect to objection to valuation under Rating Valuations Act 1998)

(1)

In section 41A(1), after “a rating unit”, insert “or separate rating area”.

(2)

In section 41A(1)(a) and (b)(ii), after “unit”, insert “or separate rating area”.

(3)

In section 41A(1)(b)(i), replace “the information in relation to the rating unit” with “information”.

Amendments to Part 3 (assessment, payment, and recovery of rates and remission and postponement)

24 Part 3 heading amended (Assessment, payment, and recovery of rates and remission and postponement)

In the Part 3 heading, replace remission and postponement with remission, postponement, and write-off of rates.

25 Section 44 amended (Notice of rates assessment)

(1)

In section 44(1) , after “rating unit”, insert “or separate rating area”.

(2)

In section 44(2), after “unit”, insert “or separate rating area” in each place.

26 Section 45 amended (Content Contents of rates assessment)

After section 45(4), insert:

(5) (4A)

If subsection (3) applies because 1 or more separate rating areas have been divided from a rating unit,—

(a)

the information required by subsection (1) must be provided for the residual rating area (if any) of the rating unit; and

(b)

a separate rates assessment must be provided for each separate rating area in the rating unit in accordance with section 98C.

27 Section 46 amended (Rates invoice)

In section 46, after “rating unit”, insert “or separate rating area” in each place.

28 Section 47 amended (Issue of amended rates invoice)

In section 47(1), after “rating unit”, insert “or separate rating area” in each place.

29 Section 48 amended (Delivery of rates assessment and rates invoice)

(1)

In section 48(1), after “unit”, insert “or separate rating area”.

(2)

In section 48(3), replace “the rating unit” with “a rating unit or separate rating area”.

30 Section 49 amended (Late delivery of rates invoice)

In section 49, after “rating unit”, insert “or separate rating area”.

31 Section 51 amended (Combined rates assessment and rates invoice)

(1)

In section 51(1), after “units”, insert “or separate rating areas” in each place.

(2)

In section 51(2), after “rating unit”, insert “or separate rating area”.

(3)

In section 51(3), after “unit”, insert “or separate rating area” in each place.

32 Section 54 amended (Power not to collect small amounts)

(1)

In section 54(1) and (2)(a), after “rating unit”, insert “or separate rating area”.

(2)

In section 54(3)(b), replace “that rating unit” with “the rating unit or separate rating area”.

33 New section 62A inserted (Person actually using certain abandoned general land liable for rates)

After section 62, insert:

62A Person actually using certain abandoned general land liable for rates

(1)

This section applies to land if—

(a)

the land is general land that ceased to be Māori land under Part 1 of the Maori Affairs Amendment Act 1967; and

(b)

the land is beneficially owned by the persons, or by the descendants of the persons, who beneficially owned the land immediately before the land ceased to be Māori land; and

(c)

rates have not been paid to the local authority by the owner of the land for 3 years or more; and

(d)

the owner of the land—

(i)

is unknown; or

(ii)

cannot be found after due inquiry and has no known agent in New Zealand; or

(iii)

is deceased and has no personal representative; or

(iv)

has given notice to the local authority that they intend to abandon or have abandoned the land.

(2)

A person actually using land to which this section applies is liable for rates on the land in respect of the period commencing on or after the date they started using the land.

(3)

A person actually using only part of a rating unit of land to which this section applies during a financial year must be treated as having used the whole of the rating unit for the whole of the financial year unless the person establishes otherwise.

(4)

The rates assessment and rates invoice must be delivered to the person actually using the land to which this section applies.

(5)

This section overrides sections 44 and 46.

34 Section 63 amended (Legal proceedings to recover rates)

In section 63(2), after “rating unit”, insert “or separate rating area”.

35 New section 65A inserted (Recovery of unpaid rates from person actually using certain land

After section 65, insert:

65A Recovery of unpaid rates from person actually using certain land

In proceedings under section 63 for the recovery of unpaid rates against a person actually using land to which section 62A or 96 applies (other than rates in respect of a separate rating area), the court may give judgment for a proportion of the unpaid rates if the court—

(a)

considers it to be reasonable to do so in the circumstances; 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 rates payable is disproportionately large compared to a reasonable rental or payment for the use.

36 Section 67 amended (Enforcement of judgment)

(1)

After section 67(2)(b), insert:

(c)

evidence that the land is not land described in section 62A(1)(a) and (b).

(1)

Replace section 67(3) with:

(3)

Subsection (1) does not apply to—

(a)

land that is subject to enactments that prohibit the alienation or transfer of that land; or

(b)

land described in section 62A(1).

(2)

In section 67(4), replace “despite those enactments, the local authority may” with “the local authority may, in respect of land described in subsection (3)(a),”.

36AA Section 75A amended (Unpaid levy under Infrastructure Funding and Financing Act 2020)

In section 75A(2), replace Sections 63 with Sections 62A.

36A Section 77 amended (Sale or lease of abandoned land)

After section 77(3), insert:

(3A)

The application must include evidence that the land is not land described in section 62A(1)(a) and (b).

37 Section 78 amended (Court may order sale or lease of abandoned land)

In section 78, after “complied with”, insert “and the land is not land described in section 62A(1).

38 Heading to subpart 2 of Part 3 amended (Remission and postponement)

In the heading to subpart 2 of Part 3, replace and postponement with , postponement, and write-off.

39 New sections 90A to 90D and cross-heading inserted

After section 90, insert:

Power of chief executive to write off rates

90A Chief executive may write off rates that cannot be recovered

(1)

The chief executive of a local authority must write off any outstanding rates that, in the chief executive’s opinion, cannot reasonably be recovered.

(2)

The chief executive may write off rates under subsection (1) on—

(a)

the chief executive’s own initiative; or

(b)

the application of a ratepayer (who may make an application at any time).

(3)

The chief executive must—

(a)

notify a ratepayer of any write-off of the ratepayer’s rates under this section; and

(b)

within 30 days of receiving an application under subsection (2)(b), provide written reasons to the applicant of the reasons for the decision to write off, or not to write off, the rates specified in the application.

90B Chief executive may write off rates of deceased owners of Māori freehold land

(1)

The chief executive of a local authority may, in respect of a rating unit of Māori freehold land, write off all or part of the outstanding rates that—

(a)

are payable by a person beneficially entitled to a deceased owner’s beneficial interest in the land; and

(b)

were payable by the deceased owner at the death of the owner.

(2)

The local authority must give notice to the ratepayer of any write-off.

90C Chief executive may delegate power to write off rates

(1)

The chief executive of a local authority may delegate the exercise of the powers under sections 90A and 90B to any specified officer of the local authority.

(2)

The chief executive must not delegate the power to delegate under this section.

90D Amount of rates written off to be included in notes to financial statements

A local authority must ensure that the notes to the financial statements described in clause 29(1)(a) of Schedule 10 of the Local Government Act 2002 disclose the amount of rates written off each financial year under sections 90A and 90B.

Amendments to Part 4 (rating of Māori freehold land)

40 Section 92 amended (Recording name of ratepayer)

(1)

After section 92(4), insert:

(4A)

If a separate rating area is divided from a rating unit under section 98A, the person actually using the separate rating area must be entered as the ratepayer in the rating information database for the separate rating area.

(2)

In section 92(7), replace “and (4)” with “(4), and (4A).

41 Section 93 amended (Limitation of trustee liability)

In section 93, insert as subsection (2):

(2)

Trustees seeking to rely on section 93(1)(b) must, on request by a local authority, provide copies of any annual financial statements provided to the beneficial owners by the trustees.

42 Cross-heading above section 96 replaced

Replace the cross-heading above section 96 with:

Person actually using Māori freehold land in multiple ownership or separate rating areas

43 Section 96 amended (Person actually using land liable for rates)

(1)

Replace section 96(1) with:

(1)

A person actually using land is liable for the rates on that land if the land is Māori freehold land—

(a)

in a rating unit in multiple ownership that is not vested in a trustee; or

(b)

in a separate rating area.

(2)

Repeal section 96(2).

44 Section 97 amended (Rates assessment delivered to person actually using land)

In section 97(2), replace “A person to whom section 96 applies and who is actually using” with “A person who is actually using land described in section 96(1)(a) (other than land in a separate rating area) and who is using only”.

45 Section 98 replaced (Recovery of unpaid rates from person actually using land)

Replace section 98 with:

98 Ratepayer of underlying rating unit not liable for rates on separate rating area

(1)

The ratepayer for a rating unit is not liable for any rates due on any separate rating area in the rating unit.

(2)

Sections 99 to 113 (which relate to charging orders on Māori freehold land) do not apply in respect of any rates due on the separate rating area.

46 New sections 98A to 98F and cross-heading inserted

After section 98, insert:

Separate rating areas on Māori freehold land

98A How rating unit on Māori freehold land divided into separate rating areas

(1)

A local authority may divide a separate rating area from a rating unit on Māori freehold land on the request of a person in accordance with this section.

(2)

A local authority must determine a part of a rating unit to be a separate rating area if the identified part of the rating unit—

(a)

comprises a dwelling; and

(b)

is used separately from the other land in the rating unit.

(3)

If the rating unit is managed by a trustee, the request for a separate rating area—

(a)

must be made by the trustee with the consent of the person actually using the identified part of the rating unit; and

(b)

must include the full name and postal address of the person actually using the identified part of the rating unit and evidence that they consent to the request.

(4)

If the rating unit is not managed by a trustee, the request for a separate rating area may be made by the person actually using the identified part of the rating unit.

(4A)

On receiving a request under subsection (4), a local authority must notify the ratepayer or ratepayers for the rating unit of the request.

(5)

Requests for separate rating areas may be made at any time during the financial year.

(6)

The division of a separate rating area from a rating unit under this section does not create any right of occupancy or interest in the land.

98B Apportionment of rates for separate rating areas

The local authority must apportion the rates assessed for the underlying rating unit between each separate rating area and any residual rating area in the unit as follows:

(a)

the apportionment of any rate must be assessed in accordance with the same values and factors that were used to assess the total rates for the underlying rating unit under section 43; and

(b)

any general rate must be apportioned between separate rating areas and any residual rating area by apportioning the rateable valuation of the underlying rating unit between each separate rating area and any residual rating area, but always using the same category of rateable land under section 14 that applies to the underlying rating unit; and

(c)

any uniform annual general charge set under section 15(1)(a) for the underlying rating unit must be apportioned equally between each separate rating area and any residual rating area in the underlying rating unit; and

(d)

any uniform annual general charge set under section 15(1)(b) for the underlying rating unit must be apportioned equally between each separate rating area, and any residual rating area, and any residual rating area in the underlying rating unit that is a separately used or inhabited part of the rating unit according to the local authority’s definition (see clauses 15 and 20 of Schedule 10 of the Local Government Act 2002); and

(e)

any targeted rate must be apportioned between each separate rating area and any residual rating area in the underlying rating unit by apportioning the factors under section 18 that apply to the underlying rating unit between each separate rating area and any residual rating area, but always using the same category of rateable land under section 17 that applies to the underlying rating unit; and

(f)

to avoid doubt, the sum of the apportionments of all rates for the separate rating areas and any residual rating area must equal the sum of all rates that would apply to the underlying rating unit without apportionment.

98C Contents of rates assessment for separate rating area

(1)

A rates assessment for a separate rating area must clearly identify all of the following:

(a)

the name and address of the local authority:

(b)

the name and address of the ratepayer:

(c)

the number on the district valuation roll of the underlying rating unit:

(d)

the legal description of the underlying rating unit:

(e)

the location of the separate rating area:

(f)

the rateable value of the separate rating area:

(g)

the amount and description of each rate:

(h)

the activities or groups of activities of the local authority that will be funded from each rate:

(i)

the relevant matters in Schedule 2 that are required to determine—

(i)

the category (if any) to which the separate rating area belongs for the purposes of setting general rates differentially under section 13(2)(b):

(ii)

the category (if any) to which the separate rating area belongs for the purposes of setting a targeted rate under section 16(3)(b) or (4)(b):

(j)

the information on the factors used to calculate the amount of the liability of the separate rating area in respect of each targeted rate:

(k)

the total amount of rates payable on the separate rating area for the financial year:

(l)

the information set out in section 45(1)(l) to (p).

(2)

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 target rates for the financial year for which, as a result of the election, no liability attaches to the separate rating area.

98D When separate rating area divided from rating area

(1)

A determination by a local authority that a part of a rating unit is a separate rating area applies on and from the commencement of—

(a)

the financial year following the financial year in which the request for the determination is made; or

(b)

if the requestor and the local authority agree, the financial year in which the request is made.

(2)

Subsection (3) applies if, before a rating unit is divided or ceases to be divided into separate rating areas for a financial year, a local authority has sent a notice, a ratepayer has made a payment, or either has done anything else that affects who is liable for rates (or apportionments of rates) under this Act for that financial year.

(3)

The local authority may do anything required to adjust who is liable for rates (or apportionments of rates), and anything required to adjust any related matters, under this Act for that financial year to reflect the division or removal of the division.

98E How separate rating area ceases to be a separate rating area

(1)

A local authority may determine that a separate rating area divided from a rating unit is no longer a separate rating area—

(a)

on the request of the trustee of the rating unit; or

(b)

if the rating unit is not managed by a trustee, on the request of the person actually using the separate rating area; or

(c)

on its own initiative if—

(i)

the dwelling on the separate rating area has been removed or demolished, or is no longer habitable; or

(ii)

there is no person actually using the separate rating area.

(2)

A determination by a local authority that a separate rating area is no longer a separate rating area applies on and from the commencement of—

(a)

the financial year following the financial year in which an application is made by the trustee of the underlying rating unit:

(b)

if the trustee and the local authority agree, the financial year in which the request is made:

(c)

if the local authority makes the determination on its own initiative, the financial year following the financial year in which the determination is made.

(3)

The local authority must write off any rates outstanding in respect of a separate rating area when the local authority ceases to apportion the rates between separate rating areas under subsection (2).

98F Election to make lump sum contributions must be made on behalf of underlying rating unit

If Part 4A applies to a rating unit that has been divided into separate rating areas, the eligible ratepayer is the ratepayer for the underlying rating unit.

47 Section 114 amended (Remission of rates)

In the heading to section 114, after rates, insert on Māori freehold land generally.

48 New section 114A inserted (Remission of rates on Māori freehold land under development)

After section 114, insert:

114A Remission of rates for Māori freehold land under development

(1)

The purpose of this section is to facilitate the occupation, development, and utilisation of Māori freehold land for the benefit of its owners.

(2)

A local authority must consider an application by a ratepayer for a remission of rates on Māori freehold land if—

(a)

the ratepayer has applied in writing for a remission on the land; and

(b)

the ratepayer or another person is developing, or intends to develop, the land.

(3)

The local authority may, for the purpose of this section, remit all or part of the rates (including penalties for unpaid rates) on Māori freehold land if the local authority is satisfied that the development is likely to have any or all of the following benefits:

(a)

benefits to the district by creating new employment opportunities:

(b)

benefits to the district by creating new homes:

(c)

benefits to the council by increasing the council’s rating base in the long term:

(d)

benefits to Māori in the district by providing support for marae in the district:

(e)

benefits to the owners by facilitating the occupation, development, and utilisation of the land.

(4)

The local authority may remit all or part of the rates—

(a)

for the duration of a development; and

(b)

differently during different stages of a development; and

(c)

subject to any conditions specified by the local authority, including conditions relating to—

(i)

the commencement of the development; or

(ii)

the completion of the development or any stage of the development.

(5)

In determining what proportion of the rates to remit during the development or any stage of the development, the local authority must take into account—

(a)

the expected duration of the development or any stage of the development; and

(b)

if the land is being developed for a commercial purpose, when the ratepayer or ratepayers are likely to generate income from the development; and

(c)

if the development involves the building of 1 or more dwellings, when the ratepayer or any other persons are likely to be able to reside in the dwellings.

(6)

Sections 85(2) and 86 apply to a remission made under subsection (3).

(7)

This section does not limit the application of section 85 or 114 to Māori freehold land.

49 New Schedule 1AA inserted

Insert the Schedule 1AA set out in the Schedule of this Act as the first schedule to appear after the last section of the principal Act.

50 Schedule 1 amended

(1)

In Schedule 1, after clause 1, insert:

1A

Land that is subject to a Ngā Whenua Rāhui kawenata under section 77A of the Reserves Act 1977 or section 27A of the Conservation Act 1987.

(2)

In Schedule 1, clause 10, delete “that does not exceed 2 hectares and”.

(3)

In Schedule 1, replace clauses 12 and 13 with:

12

Land that is used for the purposes of a marae, excluding any land used—

(a)

primarily for commercial or agricultural activity; or

(b)

as residential accommodation.

13

Land that is set apart under section 338 of Te Ture Whenua Maori Act 1993 or any corresponding former provision of that Act and used for the purposes of a meeting place, excluding any land used—

(a)

primarily for commercial or agricultural activity; or

(b)

as residential accommodation.

13A

Māori freehold land on which a meeting house is erected, excluding any land used—

(a)

primarily for commercial or agricultural activity; or

(b)

as residential accommodation.

13B

Land that is a Māori reservation held for the common use and benefit of the people of New Zealand under section 340 of Te Ture Whenua Maori Act 1993.

(4)

In Schedule 1, after clause 14, insert:

14A

An unused rating unit of Māori freehold land.

(5)

In Schedule 1, note 1, insert in its appropriate alphabetical order:

meeting place means any church, meeting house, hall, dining hall, kitchen, or other building (other than a dwelling) used as a meeting place and includes any land attached or appurtenant to and commonly used in connection with any such building

(6)

In Schedule 1, after note 4, insert:

4A

For the purposes of clause 14A,—

(a)

a rating unit is unused if—

(i)

there is no person actually using any part of the rating unit; or

(ii)

the entire rating unit is used in a similar manner to a reserve or conservation area and no part of the rating unit is—

(A)

leased by any person; or

(B)

used as residential accommodation; or

(C)

used for any activity (whether commercial or agricultural) other than for personal visits to the land or personal collections of kai or cultural or medicinal material from the land; and

(b)

a rating unit must not be treated as being used solely because a person is a participant under the Climate Change Response Act 2002 in respect of an activity relating to the rating unit.

Part 2 Amendments to other legislation

Amendments to Infrastructure Funding and Financing Act 2020

50A Amendments to Infrastructure Funding and Financing Act 2020

Sections 50B to 50W amend the Infrastructure Funding and Financing Act 2020.

50B Section 7 amended (Interpretation)

(1)

In section 7(1), definition of levypayer, after rating unit, insert or separate rating area.

(2)

In section 7(1), insert in its appropriate alphabetical order:

separate rating area means land that has become a separate rating area under section 98A of the Local Government (Rating) Act 2002

50C Section 37 amended (Who must pay levy)

(1)

After section 37(1), insert:

(1A)

The ratepayer for a separate rating area is liable to pay all levy that is due on the separate rating area.

(2)

In section 37(2)(a), after 62,, insert 62A,.

(3)

After section 37(2)(b), insert:

(c)

the ratepayer for a rating unit is not liable for any levy due on any separate rating area in the rating unit.

50D Section 51 amended (Responsible SPV may correct annual levy resolution)

(1)

In section 51(1)(b), after rating unit, insert or separate rating area.

(2)

In section 51(4), after rating unit, insert or separate rating area in each place.

50E Section 57 amended (When SPV recovers unpaid levy)

In section 57(1)(a) and (b), after rating unit, insert or separate rating area.

50F Section 58 amended (Levy is charge against rating unit)

In section 58, insert as subsection (2):

(2)

Subsection (1) does not apply in respect of a levy due on a separate rating area.

50G Section 59 amended (Invalidity of levy not ground for refusal to pay levy)

In section 59, after rating unit, insert or separate rating area.

50H Section 61 amended (Rating information database)

In section 61(1),

(a)

after rating units, insert and separate rating areas; and

(b)

replace the unit with any rating unit or separate rating area in each place.

50I Section 65 amended (Rates records and objections, etc, to rates records)

In section 65(1), after rating unit, insert and separate rating area.

50J Section 68 amended (Assessment of levy liability)

In section 68(2),

(a)

after rating unit, insert or separate rating area; and

(b)

replace that unit with the rating unit or separate rating area.

50K Section 69 replaced (Rating units in common ownership)

Replace section 69 with:

69 When responsible levy authority must treat 2 or more rating units as 1 unit for assessing levy

The responsible levy authority must treat 2 or more rating units as 1 unit for assessing levy if the rating units are treated as 1 unit under section 20 or 20A of the Local Government (Rating) Act 2002.

50L Section 70 amended (Levy assessment notified to levypayer)

In section 70(1) and (2), after rating unit, insert or separate rating area.

50M Section 71 amended (Information in levy assessment)

Replace section 71(2) with:

(2)

The following sections of the Local Government (Rating) Act 2002 apply to a rates assessment that includes levy liability:

(a)

section 45 (contents of rates assessment): and

(b)

section 98C (contents of rates assessment for separate rating area).

50N Section 73 amended (Further processes for levy assessment and levy invoice)

After section 73(d), insert:

(e)

section 98B (apportionment of rates for separate rating areas):

(f)

section 98D (when separate rating area divided from rating area):

(g)

section 98E (how separate rating area ceases to be a separate rating area).

50O Section 77 amended (Levy remission and levy postponement policies relating to Maori freehold land)

(1)

In section 77(1), after rating units, insert or separate rating areas.

(2)

After section 77(1), insert:

(1A)

Section 114A of the Local Government (Rating) Act 2002 (remission of rates for Māori freehold land under development) applies to a levy under this Act.

(1B)

However, the responsible levy authority may remit a levy under section 114A of the Local Government (Rating) Act 2002 only with the consent of the responsible SPV.

50P Section 78 amended (Remission of levy)

In section 78(1) and (3)(a), after rating unit, insert or separate rating area.

50Q New section 79A and cross-heading inserted

After section 79, insert:

Write-off of levy

79A Write-off of levy

(1)

This section applies if

(a)

there is an unpaid levy under this Act in respect of a rating unit or separate rating area; and

(b)

the chief executive of the responsible levy authority intends to write off rates in respect of that unit or separate rating area under section 90A or 90B of the Local Government (Rating) Act 2002.

(2)

The responsible levy authority must notify the responsible SPV

(a)

that the chief executive will write off the rates; and

(b)

whether the chief executive is doing so on an application under section 90A(2)(b) of the Local Government (Rating) Act 2002.

(3)

On receiving the notice, the responsible SPV may write off any unpaid levy

(a)

that the responsible SPV considers cannot reasonably be recovered; or

(b)

to which section 90B(1)(a) and (b) of the Local Government (Rating) Act 2002 applies.

(4)

The responsible SPV must

(a)

notify a levypayer of any write-off of the levypayer’s levy under this section; and

(b)

within 30 days of receiving a notice under subsection (2)(b) that the chief executive will write off rates on the application of a ratepayer under section 90A(2)(b), provide written reasons to the levypayer for the decision to write off, or not to write off, the levypayer’s levy.

50R Section 82 amended (Recovery action generally)

After section 82(2)(b), insert:

(ba)

section 62A (person actually using certain abandoned general land liable for rates):

50S Section 83 amended (Legal proceedings to recover levy)

In section 83(2), replace Sections 63 with Sections 62A.

50T Section 91 amended (Excess levy at end of levy period)

In section 91(2)(a), after rating unit, insert or separate rating area.

50U Section 95 amended (Responsible levy authority to inform responsible SPV about previous contributions)

In section 95(2)(c), after rating units, insert or separate rating areas.

50V Section 96 amended (Responsible SPV may direct responsible levy authority to transfer previous contributions and remit levies)

In section 96(1)(b), after rating unit, insert or separate rating area.

50W Section 97 amended (Responsible levy authority must refund or return previous contributions if no direction)

In section 97, after rating unit, insert or separate rating area in each place.

Amendment to Local Government Act 2002

51 Amendment to Local Government Act 2002

Section 52 amends Sections 52 and 52A amend the Local Government Act 2002.

52 Section 102 amended (Funding and financial policies)

After section 102(3), insert:

(3A)

The following policies must also support the principles set out in the Preamble to Te Ture Whenua Maori Act 1993:

(a)

the revenue and financing policy, the policy on development contributions or financial contributions, and the policy on the remission and postponement of rates on Māori freehold land adopted under subsection (1):

(b)

any rates remission policy or rates postponement policy adopted under subsection (3).

52A Schedule 1AA amended

In Schedule 1AA, after clause 21, insert the Part 4 set out in Schedule 2 of this Act.

Amendments to Te Ture Whenua Maori Act 1993

53 Amendments to Te Ture Whenua Maori Act 1993

Sections 54 and 55 amend Te Ture Whenua Maori Act 1993.

54 New section 128A inserted (Registrar may advise local authority whether rating units were previously part of same block of Maori freehold land)

After section 128, insert:

128A Registrar may advise local authority whether rating units were previously part of same block of Maori freehold land

(1)

This section applies if a local authority makes an application under section 20A(3) of the Local Government (Rating) Act 2002 for a determination as to whether 2 or more rating units were previously part of the same block of Maori freehold land.

(2)

The Registrar may make a determination as to whether the rating units were previously part of the same block of Maori freehold land.

(3)

The Registrar may decline to make a determination if satisfactory evidence is unavailable.

55 New section 330B inserted (Obligation to notify territorial authority of occupation order)

After section 330A, insert:

330B Obligation to notify territorial authority of occupation order

The Registrar of the Maori Land Court must notify the relevant local authority of—

(a)

any occupation order made under section 328; and

(b)

any amendment or cancellation of an occupation order made under section 330.

Amendments to Rates Rebate Act 1973

56 Amendments to Rates Rebate Act 1973

Section 57 amends the Rates Rebate Act 1973.

57 Section 2 amended (Interpretation)

(1)

In section 2(1), replace the definition of property with—

property means—

(a)

a rating unit within the meaning of sections 5B and 5C of the Rating Valuations Act 1998; or

(b)

a separate rating area within the meaning of section 5 of the Local Government (Rating) Act 2002

(2)

In section 2(1), definition of residential property, paragraph (a), after “unit”, insert “or separate rating area” in each place.

Amendments to Urban Development Act 2020

57A Amendments to Urban Development Act 2020

Sections 57B to 57Q amend the Urban Development Act 2020.

57B Section 185 amended (Who must pay rates?)

(1)

In section 185(1), after rating unit, insert or separate rating area in each place.

(2)

In section 185(2), after 62,, insert 62A,.

57C Section 189 amended (Procedure for setting rates)

Replace section 189(5)(a) with:

(a)

sections 20 (rating units in common ownership), 20A (rating units of Māori freehold land used as a single unit), and 22 (defence land) of the Local Government (Rating) Act 2002:

57D Section 190 amended (Kāinga Ora may set rates again within same financial year)

(1)

In section 190(1)(b), after rating unit, insert or separate rating area.

(2)

In section 190(4), after rating unit, insert or separate rating area in each place.

57E Section 192 amended (Due date or dates for payment)

In section 192,

(a)

after rating unit, insert or separate rating area; and

(b)

after that unit, insert or area.

57F Section 194 amended (When excess rates are refunded to ratepayers)

(1)

In section 194(3)(a), after rating units, insert or separate rating areas.

(2)

In section 194(3)(b), after rating unit, insert or separate rating area.

57G Section 201 amended (Notice of rates assessment)

In section 201(1) and (3), after rating unit, insert or separate rating area in each place.

57H Section 202 amended (Contents of rates assessment)

In section 202(1)(c) and (d), after rating unit, insert or separate rating area.

57I Section 203 amended (Rates invoice)

(1)

In section 203(1), after rating unit, insert or separate rating area in each place.

(2)

In section 203(3)(a) and (d), after rating unit, insert or separate rating area.

57J Section 205 amended (When Kāinga Ora may recover unpaid rates)

(1)

In section 205(1)(a) and (3)(b), after rating unit, insert or separate rating area.

(2)

In section 205(1)(b), replace the unit with the rating unit or separate rating area.

57K Section 206 amended (Application of Local Government (Rating) Act 2002: calculation, payment, and recovery)

In section 206(1)(j), replace and 62 with to section 62A.

57L Section 207 amended (Remission of rates)

In section 207(1), after rating unit, insert or separate rating area.

57M Section 208 amended (Recording remitted rates)

In section 208(a), after rating unit, insert or separate rating area.

57N Section 209 amended (Postponement of requirement to pay rates)

In section 209(1), after rating unit, insert or separate rating area.

57O New section 210A and cross-heading inserted

After section 210, insert:

Write-off of rates

210A When Kāinga Ora may write off targeted rates

(1)

This section applies if

(a)

there is an amount of targeted rates under this Act that is unpaid for a rating unit or separate rating area; and

(b)

the chief executive of the relevant territorial authority intends to write off rates in respect of that unit under section 90A or 90B of the Local Government (Rating) Act 2002.

(2)

The relevant territorial authority must notify Kāinga Ora

(a)

that the chief executive will write off the rates; and

(b)

whether the chief executive is doing so on an application under section 90A(2)(b) of the Local Government (Rating) Act 2002.

(3)

On receiving the notice, Kāinga Ora may write off any unpaid targeted rates

(a)

that Kāinga Ora considers cannot reasonably be recovered; or

(b)

to which section 90B(1)(a) and (b) of the Local Government (Rating) Act 2002 applies.

(4)

Kāinga Ora must

(a)

notify a ratepayer of any write-off of the ratepayer’s targeted rates under this section; and

(b)

within 30 days of receiving a notice under subsection (2)(b) that the chief executive will write off rates on the application of a ratepayer under section 90A(2)(b), provide written reasons to the ratepayer for the decision to write off, or not to write off, the ratepayer’s targeted rates.

57P Section 211 amended (Application of Local Government (Rating) Act 2002: rating of Māori freehold land)

After section 211(2), insert:

(2A)

A relevant territorial authority may remit targeted rates under section 114A of the Local Government (Rating) Act 2002 only with the consent of Kāinga Ora.

57Q Section 212 amended (Rating information database to include information on targeted rates)

In section 212,

(a)

after rating unit, insert or separate rating area; and

(b)

replace the unit with the rating unit or separate rating area in each place.

57R Section 213 amended (Rates records to include information on targeted rates)

In section 213,

(a)

after rating unit, insert or separate rating area; and

(b)

replace that unit with the rating unit or separate rating area.

Amendment to Māori Land Court Fees Regulations 2013

58 Amendment to Māori Land Court Fees Regulations 2013

Section 59 amends the Māori Land Court Fees Regulations 2013.

59 Schedule amended

In the Schedule, after item 25(o), insert:

(p)determination whether rating units were previously part of the same block of Māori freehold land128A60

Schedule New Schedule 1AA inserted

s 49

Schedule 1AA Transitional, savings, and related provisions

s 5A

Part 1 Provisions relating to Local Government (Rating of Whenua Māori) Amendment Act 2020

1 Definition of amendment Act

In this Part, amendment Act means the Local Government (Rating of Whenua Māori) Amendment Act 2020.

2 Local authority must write off rates arrears for Māori freehold land that is non-rateable on commencement of section 50 of amendment Act

On the commencement of section 50 of the amendment Act, a local authority must write off rates arrears in respect of—

(a)

land that is subject to a Ngā Whenua Rāhui kawenata; and

(b)

Māori freehold land that is unused (within the meaning of Schedule 1 of this Act).

3 Recognition of pre-commencement actions and processes in relation to separate rating areas

Any action or process undertaken before the commencement of section 46 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.

Schedule 2 New Part 4 inserted in Schedule 1AA of Local Government Act 2002

s 52A

Part 4 Provisions relating to Local Government (Rating of Whenua Māori) Amendment Act 2020

22 Delayed effective date of requirement for certain funding and financial policies to support principles in Preamble to Te Ture Whenua Maori Act 1993

(1)

Section 102(3A) (as inserted by section 52 of the Local Government (Rating of Whenua Māori) Amendment Act 2020) does not apply to any policy adopted before the effective date for the relevant policy.

(2)

The policies referred to in section 102(3A) must

(a)

be reviewed for compliance with that section by the effective date for the relevant policy; and

(b)

be amended or replaced as required in order to achieve compliance with that section on or before the effective date.

(3)

If a local authority amends its revenue and financing policy under section 93(4) before 1 July 2024 solely for the purpose of complying with section 102(3A), the amendment is not required to be audited in accordance with sections 93D(4) and 94.

(4)

In this clause,

commencement date means the commencement of section 52 of the Local Government (Rating of Whenua Māori) Amendment Act 2020

effective date means,

(a)

for a revenue and financing policy adopted under section 102(1), 1 July 2024:

(b)

for a policy on development contributions or financial contributions adopted under section 102(1), the date of the completion of the first review of the policy in accordance with section 106(6) that commenced after the commencement date:

(c)

for a policy on the remission and postponement of rates on Māori freehold land adopted under section 102(1), 1 July 2022:

(d)

for any rates remission policy or rates postponement policy adopted under section 102(3), the earlier of

(i)

1 July 2024; and

(ii)

the date of the completion of the first review of the policy under section 109(2A) or 110(2A) that commenced after the commencement date.

Legislative history

27 February 2020

Introduction (Bill 226–1)

12 March 2020

First reading and referral to Māori Affairs Committee

3 August 2020

Reported from Māori Affairs Committee (Bill 226–2)

16 March 2021

Second reading

17 March 2021

Committee of the whole House