[Tracey Walker]

We have identified a few properties through our Sale of Land process where Council is considering compulsory acquiring the properties, either for road reserves, footpaths,add to the existing park or car parks.

If Council was to acquire these properties and as some have large sums of money owing, does Council pay the rates on transfer, or do we abandon the rates through Council resolution.

Any assistance would be greatly appreciated.

Tracey

[Robert Hay]

Hi Tracey

I answered a similar question under payment of rates and believe the same applies here, once the land is transferred to Council I think Section 571 (3) is applicable
“A person who becomes liable for rates and charges levied on land is liable to the council for a rate or charge owing in respect of the land even though the person was not so liable when the rate or charge was levied.”
I believe Council is now liable and should pay the rates not write them off.

Robert

[David Grima]

I agree Robert.

[Tracey Walker]

Thanks Robert and David.

I thought that was the case but I just wanted to sure prior to my next project meeting.

[John Towers]

Hi guys,

Another late response but I agree.

As Council was not the owner at the time the rates were levied they would remain payable.

What happens going forward is another question.

JT

[Tracey Walker]

John,

You are completely right, the properties mentioned above will be compulsory acquired for those purposes and Council wears the expense of the acquisition as well as the rates outstanding but then they would be turned to exempt properties.
But the question raised yesterday was if Council was to compulsory acquire some of slithers for example a triangle across someone’s drive way could we on sell it to the adjoining owner. To be advised by our legal division that no we can’t, we would be better off purchasing them at auction if passed in and then selling them to the adjoining owners.

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