A Kaipara ratepayer refusing to pay his rates is challenging in court his territorial authority's decision to legally recoup nearly $1 million in land and water rates as well as penalties.
Bruce Rogan, chairman of the Mangawhai Ratepayers and Residents' Association (MRRA), has taken a test case in Whangarei District Court against the Kaipara District Court and a hearing will take place today.
"This is an extremely important case of local government and anybody's who is concerned about the power of councils to set rates should attend the hearing," he said.
The council is taking to court about 100 defaulting ratepayers, including Mr Rogan, who owe nearly $1 million in rates and penalties from 2012 in protest against Parliament passing the Kaipara Validation Act. The Act validated irregularities in the setting and assessing of Kaipara District rates from the 2006/07 financial year to 2011/12 in respect of a wastewater scheme.
One defaulting ratepayer owes the council more than $100,000 while others are being asked to pay five-figure sums. The council is seeking $14,946 from Mr Rogan and his wife Heather for their Mangawhai Heads' property. In his statement of defence, Mr Rogan claimed he was not liable to pay rates because they have been unlawfully set, assessed and invoiced. He said the council had no statutory power to start legal proceeding against defaulting ratepayers in October last year.
The rates' assessment notice for the 2013/14 and 2014/15, he said, did not clearly identify the statutory information that must be stipulated according to the Local Government (Rating) Act 2002. In an affidavit filed in support of the statement of defence, Mr Rogan said he and his wife would only pay once the council delivered compliant rates' assessment notices and invoices.
In June last year, he said association members agreed to pay up if the commissioners running the council were willing to rescind all penalties on the validated rates.
"This offer was not only rejected, but it was followed a matter of just three days later by a letter from the council to those whose rates were in arrears, threatening additional penalties if full payment was not made by July 1, 2014."
He said instead of approaching association members with a view to negotiating a deal, the council decided to rely upon the courts to enforce collection of amounts if claimed were owed. The Mangawhai Ratepayers and Residents' Association (MRRA) took the council to the High Court to seek a declaration that the rates were invalid. However, Justice Paul Heath said that, since the Act was passed by Parliament, he didn't have powers to declare it unlawful.