The Department of Internal Affairs

The Department of Internal Affairs

Te Tari Taiwhenua

Building a safe, prosperous and respected nation

 

Agreeing on a lease? Find out about law changes


28/6/2002

People agreeing on lease arrangements extending beyond July 1 2003 need to know about new laws on rating.

Among the changes in the Local Government (Rating) Act is a new rule about who is ultimately responsible for paying rates.

Under the present law in some circumstances people with leases longer than 12 months for parts of a property are liable for rates. A key concept of the new law is that only whole properties are separately rated. Part of a property, such as one shop in a block of 10, will not be separately rated. Under the new law the person liable for rates is the person listed as the ratepayer on the district valuation roll – usually the owner of the whole property.

The effect of the new law on leases is to bring rating arrangements for many commercial properties in line with the usual rating arrangements for residential property.

The Department of Internal Affairs has full information about the new law on lease arrangements on its website (click here for Background Details) and will publish further information about the new law before it comes into effect on July 1 2003.

Media Contact: Colin Feslier 04 495 9460 021 575 676