Council in court proceedings with seven property owners

The owners of seven Hamilton properties are at various stages of court proceedings with Hamilton City Council due to unpaid rates.

Earlier this month, Waikato Times reported that Hamilton City Council was aware of over 1000 rates accounts with an outstanding balance. When these cases get to a certain point, the council has the right to begin court proceedings.

Financial director Tracey Muster said although this is an option for council, it’s usually a last resort.

“We know times are tough out there, so if a ratepayer is having trouble paying their rates, we offer flexible payment arrangements. You can choose to pay your rates by direct debit, credit card, internet banking or in person,” Muster said.

Rates are a hot topic with Hamiltonians. Council proposed a 25.5% rates increase last year. That number is now down to 19.9% in the long-term plan, with 15.5% increases proposed for the following four years. The increases sparked an outcry from the public with many pointing out the hikes will be unaffordable to many in Hamilton, especially with many people and businesses already struggling.

Muster said that there are many steps in between an overdue rating account and the council taking court action.

“In general, where rates are unpaid during the current rating year, unpaid instalments will incur a penalty of 10% after the due date of each instalment.

Where there are outstanding rates for prior rating years, a 10% penalty is applied on outstanding rates from prior rating years, twice per year.

If a property with unpaid rates has a mortgage registered on the title, we notify the mortgagee. If the rates remain unpaid, we then make a demand for payment directly from them.”

If the property has no mortgage, the council will attempt to collect the debt.

If unsuccessful, the debt collection will be passed onto collection agency Baycorp. Failing this, Baycorp can take legal action on the council’s behalf.

“We then seek to recover any legal costs, and a default is listed against the debtor’s credit file.”

It got to this point for antique collector and salesman Adam Archer last year when the council ran a public notice in the Waikato Times classifieds stating that an action had been commenced against him in the Hamilton District Court to recover $9,538.64 he owed in rates.

At the time council said of the 25 properties in Hamilton with unpaid rates owing, 19 were due to the same reason for Archer’s unpaid rates: Their sovereign citizen beliefs that they had no legal obligation to pay rates.

It’s unknown whether the seven properties in court proceedings with the council are also owned by people with the same beliefs.

Muster said it’s always possible to figure out a solution with council if rates are causing financial hardship.

“If a ratepayer is on a low income and struggling to pay their rates, we may also be able to help with a rates rebate.”