Australian Capital Territory Numbered Acts Australian Capital Territory Numbered Actssubstitute
24 Sale of land for nonpayment of land tax
(1) This section applies if—
(a) a parcel of land is held by the owner under a lease from the Commonwealth for a term of years; and
(b) the commissioner has complied with section 21 (Notice of land tax in arrears) in relation to the parcel; and
(c) land tax payable for the parcel are in arrears for at least 1 year after the day of notification under section 21 in relation to the parcel.
(2) The commissioner may apply to a court of competent jurisdiction for an order for the sale of all or part of the parcel.
Example
The commissioner has given notice and made a declaration under section 21 in relation to a parcel of land held under lease from the Commonwealth. If the parcel is unoccupied, the commissioner may take action under section 22 to lease the parcel or, if the land tax is in arrears for at least 1 year after the day of notification of the declaration, make an application under this section for an order for sale. The option to lease would not be available if the property were occupied.
Note 1 An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).
Note 2 A single application form may be approved for this section and the Rates Act 2004 , s 26 (see Legislation Act, s 255 (7)).
(3) In the application, the commissioner may ask that the proceeds of the sale also be applied in paying the total amount of any land tax or rates in arrears for 1 or more related parcels of land stated in the application.
(4) If the court is satisfied that this section applies to the parcel, the court must—
(a) order the sale by public auction of the parcel, or as much of the parcel as will be sufficient to pay the total of the following:
(i) the total amount of land tax in arrears for the parcel at the time the court makes the order;
(ii) the total amount of any rates in arrears for the parcel at the time the court makes the order;
(iii) costs and expenses in relation to the declaration, application and sale in relation to the parcel;
(iv) if the commissioner has made a request mentioned in subsection (3) in the application in relation to another parcel of land and the court is satisfied that the parcel is a related parcel of land—the total amount of any land tax or rates in arrears for the other parcel, at the time the court makes the order; and
(b) order that the proceeds be paid into court; and
(c) order that the title to the parcel be transferred to the purchaser free from mortgages and other encumbrances.
(5) The proceeds of the sale are to be applied in the following order:
(a) first, the commissioner is entitled to be paid the total of the amounts mentioned in subsection (4) (a) (i) to (iii);
(b) second, a person who was a mortgagee of the parcel before the sale is entitled to be paid the amount owing to the person under the mortgage (or, if that amount is more than the amount of any remaining proceeds, the remaining proceeds);
(c) third, subject to subsection (9), the commissioner is entitled to be paid the total of amounts to which subsection (4) (a) (iv) applies (or, if that amount is more than the amount of any remaining proceeds, the remaining proceeds);
(d) finally, subject to subsection (10), the person who was the owner of the parcel before the sale is entitled to be paid any balance.
(6) The commissioner must be paid out of court any amounts to which the commissioner is entitled under subsection (5) without a court order.
(7) If a person who was the owner or mortgagee of the parcel before the sale hands over to the court the certificate or other title to the parcel, the person must be paid out of court any amount to which the person is entitled under subsection (5) without a court order.
(8) If there were 2 or more mortgagees of the parcel before the sale, the court may make the orders about their respective entitlements that the court considers just.
(9) On application by a person who has an interest in the land otherwise than as owner or mortgagee, the court may order that the person is entitled to be paid the value of the person's interest (as decided by the court) in priority to the commissioner's entitlement under subsection (5) (c).
(10) On application by any other interested person, the court may order payment out of court of all or part of any balance to a person other than the person who was the owner before the sale if the court considers it just to do so.
(11) Any sale of the parcel or a part of the parcel under this section must be abandoned if the owner pays—
(a) the total land tax in arrears for the parcel at the time of the payment; and
(b) the total of any rates in arrears for the parcel at the time of the payment; and
(c) the costs and expenses incurred up to the time of payment in relation to the declaration, application and sale in relation to the parcel; and
(d) the costs and expenses reasonably incurred in relation to the abandonment of the sale; and
(e) if the commissioner has made a request under subsection (3) in the application in relation to 1 or more related parcels of land—the total amount of any land tax or rates in arrears for the related parcel or parcels at the time of the payment.
Example for par (d)
advising the public that an auction has been cancelled
(12) In this section:
"related"—a parcel of land is a related parcel of land in relation to another parcel of land if—
(a) the parcels have the same owner; and
(b) the commissioner has complied with section 21 in relation to them.