(1) A local government
may at the time of imposing a rate or service charge resolve* to impose
interest (at the rate set in its annual budget) on —
(a) a
rate or service charge (or any instalment of a rate or service charge); and
(b) any
costs of proceedings to recover any such charge,
that remains unpaid
after becoming due and payable.
* Absolute majority required.
(2) The rate of
interest that may be set by the local government under this section is not to
exceed the rate for the time being prescribed as the maximum rate of interest
that may be set for the purposes of this section.
(3) Accrued interest
is, for the purpose of its recovery, taken to be a rate or service charge, as
the case requires, that is due and payable.
(4) If a person is
entitled under the Rates and Charges (Rebates and Deferments) Act 1992 or
under this Act (if the local government in a particular case so resolves) to a
rebate or deferment in respect of a rate or service charge —
(a) no
interest is to accrue in respect of that rate or service charge payable by
that person; and
(b) no
additional charge is to be imposed under section 6.45(3) on that person.
(5) Regulations may
provide for the method of calculation of interest.
[Section 6.51 amended: No. 1 of 1998 s. 21(1); No.
49 of 2004 s. 62.]
[Section 6.51 modified: SL 2020/57 1M .]