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Rates Remissions Policy

RATES POLICY 1

Rating of community, sporting and other organisations. Section 85 of the Local Government (Rating) Act 2002.

Objectives of the policy

The council reaffirms its commitment to assist, where practicable, community clubs and organisations in recognition of the valuable ‘public good’ contribution made by such organisations to the character and well-being of the district.

Conditions and criteria

• The council may remit all rates where land is owned by the council, or owned and occupied by a charitable organisation, and is used exclusively or principally for sporting, recreation, or community purposes.
• The policy will not apply to organisations operated for private pecuniary profit, or which charge commercial tuition fees.
• All applications must be received in writing using the New Plymouth District Council ‘Application for Remission’ form.
• Any applications received during a rating year will be applicable from the commencement of the following rating year.  No applications will be backdated.
• Organisations making application should include the following documents in support of their application:
  • Statement of objectives.
  • Full financial accounts.
  • Information on activities and programmes.
  • Details of membership or clients.
• The policy shall apply to such organisations as approved by the Manager Financial Services and the Manager Revenue and Expenditure as meeting the relevant criteria and the extent of any remission will be determined by those officers.
• No remission will be granted in respect of those rates referred to in sections 16 and 19 of the Local Government (Rating) Act 2002 (that is, targeted rates for water supply, sewage disposal or waste collection).
• Any appeals against the decisions of the Manager Financial Services and Manager Revenue and Expenditure will be referred to the Monitoring Committee for final determination.
• A summary of remissions must be supplied to the council on an annual basis.Return to top

 

RATES POLICY 2

Remission of penalties.
Section 85 of the Local Government (Rating) Act 2002.

Objectives of the policy

The objective of this policy is to enable the council to act fairly and reasonably in its consideration of rates which have not been received by the council by the penalty date due to circumstances outside the ratepayer’s control; or In order to ensure the settlement of outstanding rates and the ratepayer has made an arrangement to pay over an extended period.

Conditions and criteria

• Automatic remission of the penalties will apply to those ratepayers that have an automatic payment or direct debit in place as approved by the Manager Revenue and Expenditure.
• Automatic remission of the penalties will apply to those ratepayers that pay their rates in full by the second instalment due date.
• Remission of the penalty will be granted if the ratepayer is able to provide evidence that their payment has gone astray in the post or the late payment has otherwise resulted from matters outside their control.
• Application will be considered on its merits and remission will be granted where it is considered just and equitable to do so.
• Application for a penalty remission is required in writing however under some circumstances approved by either the Manager Financial Services or Manager Revenue and Expenditure, verbal applications will be accepted.
• The council may remit small balances due to cash rounding.
• The Manager Financial Services and the Manager Revenue and Expenditure have delegated authority to grant or refuse remissions under this policy.
• Any appeals against the decision will be referred to the Monitoring Committee for final determination.
• If an arrangement to pay rates and/or clear outstandings is not adhered to, the council may reinstate future penalty charges.Return to top

 

RATES POLICY 3

Postponement of rates for extreme financial hardship.
Sections 85 and 87 of the Local Government (Rating) Act 2002.

Objectives of the policy

The objective of this policy is to assist ratepayers experiencing extreme financial hardship which affect their ability to pay rates.

Conditions and criteria 

• Only rating units used solely for residential purposes (as defined by the council) will be eligible for consideration for rates remission for extreme financial hardship.
• Only the person entered as the ratepayer, or their authorised agent, may make an application for rates remission for extreme financial hardship on the rating unit which is the subject of the application. The person entered on the council’s rating information database as the “ratepayer” must not own any other rating units or investment properties (whether in the district or in another district).
• The council will consider, on a case by case basis, all applications received that meet the criteria described in the two paragraphs above.
• When considering whether extreme financial hardship exists, all of the ratepayer’s personal circumstances will be relevant including, but not limited to, the following factors: age, physical or mental disability, injury, illness and family circumstances.
• Before approving an application the council must be satisfied that the ratepayer is unlikely to have sufficient funds left over, after the payment of rates, for normal health care, proper provision for maintenance of his or her home and chattels at an adequate standard as well as making provision for normal day to day living expenses.
• The ratepayer must make application to the council on the prescribed form.
• The ratepayer must make acceptable arrangements for payment of future rates, for example by setting up a system for regular payments.
• The council may add a postponement fee to the postponed rates for the period between the due date and the date they are paid. This fee will not exceed an amount which covers the council’s administration and financial costs.
• The policy will apply from the beginning of the rating year in which the application is made although the council may consider backdating past the rating year in which the application is made depending on the circumstances.
• The postponement will continue to apply until:
  • The ratepayer ceases to be the owner or occupier of the rating unit; or
  • The ratepayer ceases to use the property as their residence; or
  • Until a date specified by the council; whichever is the sooner.
• The postponed rates will remain a charge against the property and must be paid either at the end of the postponement term or when the property is sold. Postponed rates may include rate arrears owing from a previous financial year.
• A rating charge will be registered on the certificate of title and will be removed when the postponed amount has been repaid.
• The application will be determined by the Manager Financial Services and the Manager Revenue and Expenditure.
• Any appeals against the decision will be referred to the Monitoring Committee for final determination.Return to top

RATES POLICY 4

Rates remission on Māori freehold land.
Sections 85 and 108 of the Local Government (Rating) Act 2002.

The council only remits rates on Māori freehold land, it does not allow postponements.  In determining this policy the council has taken account of those matters set out in Schedule 11 of the Local Government (Rating) Act 2002.

Objectives of the policy

To recognise situations where there is no occupier or no economic or financial benefit being derived from the land.Where the owners cannot be found, to take into account the statutory limitation of time for the recovery of unpaid rates.

Conditions and criteria  

• The land must be multiple-owned and unoccupied Māori freehold land that does not produce any income.
•  A request for rates remission by the owners must include:
  • Details of the land;
  • Documentation that shows the ownership of the land; and
  • Reasons why remission is sought.
• Where after due enquiry the owners of an unoccupied block cannot be found, the council may apply a remission without the need for a request.
• If circumstances change in respect of the land, the council will review whether this remission policy is still appropriate to the land.
• The Manager Financial Services and the Manager Revenue and Expenditure have delegated authority to grant or refuse remissions under this policy.
• Any appeals against the decision will be referred to the Monitoring Committee for final determination.
• A summary of remissions must be supplied to the council on an annual basis.Return to top

 

RATES POLICY 5

Rates remission in miscellaneous circumstances.
Section 85 of the Local Government (Rating) Act 2002.

Objectives of the policy

It is recognised that not all situations in which the council may wish to remit rates will necessarily be known about in advance and provided for in council’s specific policies.

Conditions and criteria

• The council may remit all rates on a rating unit where it considers it just and equitable to do so because:
  • Extraordinary circumstances have arisen by virtue of the transition from the Rating Powers Act 1988 to the Local Government (Rating) Act 2002 that meant it would be fair and equitable to grant relief.
  • The application does not meet the circumstances provided for in any of the council’s other remission policies.
• The application will be determined by the Manager Financial Services and the Manager Revenue and Expenditure.
• Any appeals against the decision will be referred to the Monitoring Committee for final determination.Return to top

 

RATES POLICY 6

Rates remission for land protected for natural historical or cultural purposes.
Section 85 of the Local Government (Rating) Act 2002.

Objectives of the policy

The objective of this policy is to encourage the protection of significant natural areas by providing rates relief for privately owned land that contains special features voluntarily protected for natural, historic, cultural or conservation purposes.

Basis of remission

The remission will be based on the proportion the area protected bears to the total area of the property.  Where the protected area is covenanted, the remission will be 100 per cent of the general rate pro-rata as per this proportion; where the protected area is protected by virtue of inclusion in the District Plan but not covenanted, the remission will be 50 per cent of the general rate pro-rata as per this proportion.
Note:  Remissions granted under this policy do not include targeted rates.

Conditions and criteria

• The area of land containing the special features is readily identified and able to be measured.
• The special features are significant in terms of the loss of use or value of the property sustained in retaining the feature.
• The area of land containing the feature is protected to the extent that economic utilisation is at least restricted or the value of the property is significantly affected by the existence of the feature being protected.
• A heritage building is protected by a legal instrument or agreement.
• The application will be determined by the Manager Financial Services and the Manager Revenue and Expenditure.
• Any appeals against the decision will be referred to the Monitoring Committee for final determination.
• Remissions granted under this policy will be reported to the council on an annual basis.Return to top

 

RATES POLICY 7

Remission of Uniform Annual General Charges on rating units which are used for residential purposes and which include a separately inhabited part occupied by a dependent member of the family of the owner of the rating unit.
Section 85 of the Local Government (Rating) Act 2002.

Objectives of the policy

The policy is to provide for the possibility of rates remission where more than one uniform annual general charge is assessed on a rating unit because that rating unit comprises more than one separately used or inhabited part and where:

• The rating unit is used for residential purposes and includes a separately inhabited part occupied by a dependent member of the family of the owner of the rating unit.

Conditions and criteria

The council may remit the specified rates where the application meets the following criteria:

• The rating units above must be used as the owner’s residence but also contain a minor flat or other residential accommodation unit which is inhabited by a member of the owner’s family who is dependent on the owner for financial support and occupies the accommodation on a non paying basis (e.g. granny flat).
• The owner(s) of the rating unit must complete and provide to the council a statutory declaration.  Such a declaration will be effective for three years or until the conditions cease to be met, whichever is earlier.  A fresh declaration must be completed and provided in order to qualify for consideration for remission beyond the first three year period.
• The Manager Financial Services and Manager Revenue and Expenditure have delegated authority to grant or refuse remissions under this policy.
• Any appeals against the decision will be referred to the Monitoring Committee for final determination.Return to top