Council forces Cambridge property sale to recover rates

The ratepayer had not paid rates since 2016.

A Cambridge property owner who is alleged to have not paid rates and water charges since 2016 has had their property sold in a rating sale to recover almost $32,000.

Waipā District Council said it was the first time in almost 20 years it has had to resort to the final option to recover outstanding rates.

The ratepayer had owned the property since July 2014 and had not paid rates or metered water charges since September 9, 2016. The council was owed $31,978.98.

Interim chief executive Ken Morris said taking legal action was a last resort, as previously agreed payment arrangements had not been complied with.

“All other avenues to recover the outstanding debt were explored and were unsuccessful.

“There was no mortgage on the property and penalties had not achieved payment. The only option left was to go through the courts.”

The ratepayer, after being advised to make arrangements to clear the rates within three months of the judgement date, failed to do so, forcing the rating sale.

Proceeds of the sale will cover the unpaid rates and the council’s legal fees. The remainder will be paid to the ratepayer.

Local authorities have several tools to assist in collecting unpaid rates, including penalties, recovery from another party that has an interest in the property (typically a bank if a property has a mortgage) or enforcement through the courts.

Waipā District Council currently has legal action under way on 10 other properties to recover $89,072.85.