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LOCAL GOVERNMENT ACT 1999 - SECT 155

155—Service rates and service charges

        (1)         In this section—

"prescribed service" means any of the following services:

            (a)         the treatment or provision of water;

            (b)         the collection, treatment or disposal (including by recycling) of waste;

            (ba)         a television transmission (or retransmission) service;

            (c)         any other service prescribed by the regulations for the purposes of this definition.

        (2)         A council may impose—

            (a)         a service rate, an annual service charge, or a combination of a service rate and an annual service charge, on rateable land within its area to which it provides, or makes available, a prescribed service;

            (b)         an annual service charge on non-rateable land to which it provides, or makes available, a prescribed service.

        (2a)         Subsection (2) does not apply in prescribed circumstances.

        (3)         A service rate, or annual service charge, may vary—

            (a)         according to whether the land to which it applies is vacant or occupied; or

            (b)         according to any other factor prescribed by the regulations and applied by the council.

        (4)         If a council provides more than one prescribed service of a particular kind in its area, a different service rate or annual service charge may be imposed in respect of each service.

        (5)         A council must not seek to recover in relation to a prescribed service an amount by way of service rate, annual service charge, or a combination of both exceeding the cost to the council of establishing, operating, maintaining, improving and replacing (including by future capital works and including so as to take into account the depreciation of any assets) the service in its area (being a cost determined taking into account or applying any principle or requirement prescribed by the regulations).

        (5a)         Subsection (5) is subject to the qualification that if the Essential Services Commission ("ESCOSA") makes a determination under another Act regulating prices, conditions relating to prices, and price-fixing factors for the provision of a prescribed service that is inconsistent with that subsection, the determination made by ESCOSA will prevail to the extent of the inconsistency (and ESCOSA may, in acting under another Act in a case that is relevant to the operation of this section, apply or take into account a factor or principle that is in addition to a matter referred to in subsection (5)).

        (6)         Subject to subsection (7), any amounts held in a reserve established in connection with the operation of subsection (5) must be applied for purposes associated with improving or replacing council assets for the purposes of the relevant prescribed service.

        (7)         If a prescribed service under subsection (6), is, or is to be, discontinued, any excess of funds held by the council for the purposes of the service (after taking into account any expenses incurred or to be incurred in connection with the prescribed service) may be applied for another purpose specifically identified in the council's annual business plan as being the purpose for which the funds will now be applied.

        (8)         An annual service charge may be based on—

            (a)         the nature of the service; or

            (b)         the level of usage of the service; or

            (c)         any factor that applies under subsection (3); or

            (d)         a combination of 2 or more factors under the preceding paragraphs.

        (9)         A service charge imposed by a council under this section is recoverable as if it were a rate (even as against non-rateable land).

        (10)         A council may declare a service rate or an annual service charge in respect of a particular prescribed service despite the fact that the service is provided on behalf of the council by a third party.

        (11)         If a prescribed service, in relation to a particular piece of land, is not provided at the land and cannot be accessed at the land, a council may not impose in respect of the prescribed service a service rate or annual service charge (or a combination of both) in relation to the land unless the imposition of the rate or charge (or combination of both)—

            (a)         is authorised by the regulations; and

            (b)         complies with any scheme prescribed by the regulations (including regulations that limit the amount that may be imposed or that require the adoption of a sliding or other scale established according to any factor, prescribed by the regulations, for rates or charges (or a combination of both) imposed under this section).



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