Rate changes for Māori land
In 2021, the Government passed significant changes to reduce barriers for Māori landowners.
These changes have made it easier for whānau to use, develop and live on their tūpuna whenua.
Most of the changes outlined in the Local Government (Rating of Whenua Māori) Amendment Act 2021 came into force on 1 July 2021.
Key changes
- The Chief Executive of local authorities may write off rates that cannot be recovered.
- All land, if in the Chief Executive’s opinion cannot reasonably be recovered.
- Māori land where beneficial owners in a block of land become liable for the rates arrears of deceased owners.
- Makes most unused land non-rateable including Ngā Whenua Rāhui land that has been set aside for conservation purposes.
- Māori land rating units that are entirely unused will be non-rateable.
- Māori land subject to Ngā Whenua Rāhui Kawenata will be non-rateable.
- Provide a statutory rates remission process for Māori land under development.
- If the ratepayer or another person is developing the land, or intends to develop the land and has applied in writing for a remission on the land.
- Allows multiple Māori land blocks to be treated as one for rating purposes if they are used jointly as a single unit.
- A person using two or more rating units of Māori freehold land may apply to the local authority for two or more rating units to be treated as one unit for the purposes of a rates assessment.
- Enables individual houses on Māori land to be rated as a separate rating area. This will enable low-income homeowners on blocks with more than one home to access rates rebates.
- A local authority may divide a separate rating area from a rating unit on Māori land on the request of a person or a Trust.
- The division of a separate rating area from a rating unit does not create any right of occupancy or interest in the land.
Separate Rating Area application form (160kb pdf)
Post the application form to Private Bag 12022, Tauranga 3143 or email to maoriland@tauranga.govt.nz.
Other changes
The legislation relating to the rating of Māori land remained unchanged for almost 100 years. The modernisation of the legislation affecting the rating of Māori land does:
- Protect Māori land made general land by the Māori Affairs Amendment Act 1967 from being leased or sold as “abandoned land sales”.
- Remove the two-hectare limit on the non-rateability for marae and urupā.
- Extend the non-rateability for marae to all land, not just those on a Māori reservation.
- Clarify that homes on Māori reservations are liable for rates.
- Clarify the obligations on trustees to declare income received from land if requested.
Occupation orders
There is no change for occupation orders that have been granted through the Māori Land Court.
The Māori Land Court is now required to inform us of any occupation orders that have been granted.
Once we are notified, we will set up a new rating unit. The new occupier of the new rating unit will be advised of their new rating unit valuation number and the valuation details of their new rating unit. Rating of the new rating unit will begin when the occupier has started occupying or utilising the land the occupation order covers in the next rating year.
People who have an occupation order are eligible to apply for rates rebate.