[Maria Markovski]

Hi
We would like to know how far back (years) do you make adjustments for council administrative errors?

This error relates to an incorrect rating category. The property was originally exempt from paying rates but the category should have been updated to business when the property transferred to the new owner in 2008.

s712 (1) of the Local Government Act states
“Proceedings for the recovery of a rate or charge may be commenced at any time within 20 years from the date when the rate or charge became due and payable”

But, we have received legal advise that we can only levy rates for the current year and last year. The advice relied on s546(2) of the Local Government Act
“The notice may be served at any time after 1 July in the year for which the rate or charge is made or in a subsequent year. ”

We would like to know what other councils would do or have done in similar situations and any supportive legislation or cases.

[Robert Hay]

Hi Maria

In my opinion that is a pretty narrow view of “a subsequent year” paying attention to “a”. If the act only wanted to charge for two years I believe it would have been more prescriptive. Remember until its tested in court it is only an opinion.

I have had a similar case and will be backdating the rates to the date of transfer. We have a copy of the 603 certificates which states that the non rateable property would be rated from the date of transfer.

Have you also looked at section 572 regarding change of rateability?

[Author]

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