[Cherie Muir]

Hi guys
Bear with me, I’m suffering from ESF classification fog and need your help in confirming some exemption logic for s.501 charges. We have a s.501 charge for our Onsite Sewer System Management program (OSSM).

Section 555 – Exemption from all Rates
Section 556 – Exempt from all Rates except special sewer and water charges (s.552)

Page 59 of the Revenue Raising Manual says in relation to exemptions: “Some land is exempt from all rates, other than water supply special rates and sewerage special rates: see section 556. It must be noted that land under this section is not exempt from annual charges made under section 501.”

Does it follow that s.501 charges cannot be levied on properties exempted under s.555? e.g. a church that has is exempt from all Rates via s.555, and by all ‘rates’ that means all charges as well. So s.501 charges cannot be levied on an s.555 exempted church?

And take the example of a BPI/charity exempted from rates only under s.556, but not exempt from s.552 sewer and water special charges, is also not exempt from s.501 charges?

Assuming this is solid to this point … say Council did not want BPI/charities to have to pay s501 charges, since there is no scope to “exempt” under the Act, Council would need to levy the charges and have some kind of policy to either donate or write-off?

Thanks.

[Robert Hay]

Hi Cherie

Does Council under Section 501, provide that service or propose to provide that service to those parcels of land owned by the BPI/Charities?

If you don’t, then you don’t have to charge them. I think a paragraph in your Statement of Revenue policy saying that those properties will not receive the proposed or provided service would cover you.

Hope this helps and is not to late

Robert

• This reply was modified 1 year, 2 months ago by Robert Hay.

[Cherie Muir]

Hi Robert

Many thanks for the reply.

Yes. Service under s.501 is supplied to those properties like charities and PBI’s, exempt from Rates under s.556.
And we have charged the s.501 to these properties. Our Revenue Statement and resolutions of adoption reflect this.

My post above (which I now realise is quite poorly written), is me attempting to solidify the logic that s.555 exempt properties are exempt from s.501 charges, while s.556 exempt properties are not exempt from s.501 charges.

In reality we have charged the s.501 on both s.555 and s.556 properties and I’m seeking to confirm that I only have to remove it from the s.555 properties (fortunately only a couple), while remaining on the s.556 properties.

The business unit aligned with the s.501 charge want to write a policy re circumstances for the s.501 to be waived, so I need to sort out the exemption logic before they can seek to do that properly.

How am I looking Robert? Take if off s.555 properties and leave in on s.556 properties?

Thanks again

[Robert Hay]

Hi Cherie

Thats a harder question to answer.

I’m not sure if I necessarily agree with the statement in the manual and prefer to accept the wording in 501 (3) An annual charge may be levied on each parcel of rateable land for which the service is provided or proposed to be provided. The charge can only be levied on rateable land.

I would not charge it at all on exempt properties. Happy to hear other opinions.

Robert

[Cherie Muir]

Thanks again Robert.

You’ve reached the same conclusion that another NSWRP has reached (the only other person I’ve badgered with this), i.e. ignore what the manual says in this case.

s.501 on its own very clearly refers to rateable land (as you point out above).

I think I have my answer. I really appreciate your time.

[Robert Hay]

Hi Cherie

Just to clarify further. They are not exempt from the 501 charge. Council just cannot charge them under that section for the service due to them being non rateable. If the exempt properties request/require the service they should pay via sundry debtor.

Robert

• This reply was modified 1 year, 2 months ago by Robert Hay.

[Robert Hay]

Sorry

The edit timeout beat me. Because you can’t charge under 501 this allows you to charge under 608. Charging under 608 will then allow you to utilise 610e which allows you to waive or reduce a charge for identified hardship categories.

Robert

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