Rates Penalties & Remissions

Introduction

This policy sets out the financial penalty for rates payments received past the instalment due date in all cases where no prior arrangement has been made with the Council.

Instalment Penalty

An additional 10% charge will be added to those rates instalments (or portions thereof) remaining unpaid on the day following the due date:

*When these dates fall on a weekend or public holiday, the next working day will be the due date.

Arrears Penalty

A further additional charge of 10% will be added to all rates and additional charges from the previous rating year remaining unpaid on 1 July. A further additional charge of 10% will be added to any rates to which the additional charge referred to in this paragraph is added and remains unpaid on 1 January.

Remission of Penalty

Additional charges may be remitted in accordance with the following criteria:

• Application can be made in writing for a remission of a penalty that has arisen due to sickness, death, age, or other acceptable general reasons to the Chief Financial Officer.
• Application can be made to the Chief Financial Officer for remission of a penalty for no substantial reason (a maximum of one such remission every two years).
• All rates must be paid in full, as a general rule, before remission is considered.
• The Chief Financial Officer may remit subsequent additional charges where satisfactory arrangements are in place for regular payment of arrears.

At the Chief Financial Officer’s discretion, an application for remission of rates penalties may be referred to the Council for consideration.

You can apply for a remission of the penalty using this form.

Arrears

Rates are a charge against the land, and must be paid regardless of who is the owner/occupier. If you feel unpaid arrears are the responsibility of the previous owner, contact them direct about reimbursement, or advise your solicitor. If you have recently purchased this property and unpaid arrears appear on your rates assessment, it is in your interest to ensure they are paid immediately.

Remission & Postponement of Rates

Statutory provision exists for the Council to remit or postpone rates in cases of extreme financial hardship. The Council has a policy of considering the postponement of rates where hardship exists. Postponed rates are a charge against the property and must be paid either at the end of the postponement term or when the property is sold.

Interest will be charged on postponed rates for new applicants at the Council's cost of capital, (currently 10%) without incurring additional charges.

Canterbury Regional Council

The Council acts as agent for the collection of rates for the Canterbury Regional Council who determine their own rates.