We received a letter in early December asking for their water and sewer access (connections) charge to made exempt. We responded to their request with the following and have received no further correspondence.
“Council’s water and sewer charges are levied in accordance with sections 501 and 502 of the Local Government Act 1993.
Section 502 deals with charges for actual use of services as opposed to annual charges. It should be notes that a charge for actual use of service is not linked to the fact that a land is rateable or non-rateable. Accordingly, no land is exempt from user charges made under section 502.
Some land is exempt from all rates, other than water supply special rates and sewerage special rates, via section 556. However, land under this section is not exempt from annual charges made under section 501.”
Councils may exempt some land and bodies from water supply special rates and sewerage special rates under section 558 which includes a public charity. As our water and sewerage charges are not levied as special rates this section is not relevant.
However, Council does provide general rate exemption for the property, under section 556(1)(h) as the land belongs to a public benevolent institution or public charity and is used or occupied by the institution or charity for the purposes of the institution or charity.
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