Table of Contents
Index 1
Foreword 2
Who pays levy 3
Levy Day – The 15th of each month 3
Calculating levy payments 3 - 4
· Residential property 3
· Personal property 3
· Motor vehicles 3
· Other property 3 – 4
Circular 1998/2 – subject headings 4
Circular 1999/3 – subject headings 4
Making a payment 5
· Who is responsible for payment 5
· NZFS bank account number 5
What happens to late payments 6
Outstanding invoices 6
Monthly reminders 6
Levy Audits 6
Frequently asked questions 7-10
· Calculation methods 7
· Vehicles 8
· Exempt items 8
· Levying mixed use buildings 9-10
Common errors/points to note 11
Index of Appendices 12
Appendices 13-55
The New Zealand Fire Service Levy Analyst is responsible for providing expert knowledge regarding the levy requirements for the organisation, adopting a proactive approach to managing the levy collection and ensuring that all the monies due to the Commission have been received.
Who Pays Levy? Levy is payable on all contracts of fire insurance covering New Zealand property and is used to fund the New Zealand Fire Service. The rules governing the New Zealand Fire Service levy are set out in the Fire Service Act 1975 (the Act), sections 48-53A (see appendix A).
The Fire Service Act excludes contracts of reinsurance and marine insurance (only where the property is outside of NZ) as well as a range of property itemised in the third schedule (see appendix B) of the Act.
Levy Day – The 15th of Each Month
Under the Fire Service Act 1975, levy is due for payment on the 15th of the second month following commencement of any insurance policy covering loss from fire (ie. if the policy begins on the 31st of December, payment should be received by the Fire Service by the 15th of February).
Note: The 15th is the last day levy can be received by the Fire Service. If the 15th falls on a weekend, then the levy payment must be received by the Fire Service on the Friday prior. Any payments received after the 15th are late and penalty interest may be charged.
Calculating Levy Payments:
- Residential Property
7.6 cents per $100 of insured replacement value (upper limit $100,000 maximum of $76 levy payable – refer to appendix C)
- Personal Property
7.6 cents per $100 of insured replacement value (upper limit $20,000 maximum of $15.20 levy payable – refer to appendix C)
- Motor Vehicles
$6.08 flat rate per motor vehicle under 3.5 tonnes gross laden weight, as defined by the Transport Act section 2(1) (see appendix D) and Road User Charges Act 1977 (see appendix E). Levy on all other ‘vehicles’ is calculated as 'other property'.
- Other Property (eg Commercial Property)
7.6 cents per $100 of insured value (sum insured)
Where the fire insurance contract for other property provides for settlement of any claim on a basis more favourable than its indemnity value (IV), or where there is no sum insured, the amount of the insured value is the IV of the property (provided it is supported by a declaration or a valuation).
The IV is calculated as the replacement value of the property, less any depreciation on an age and condition basis.
The Fire Service has published two circulars (refer appendix F and G) to help clarify how levy should be calculated.
Circular 1998/2 – subject headings are:
- Contracts of fire insurance
- Indemnity value
- Inflation of indemnity value
- Declaration certificates
- Declared values not considered true and fair
- Valuation certificates
- Declaration or valuation deemed not valid
- Absence of valuation or declaration
- Where contract doesn’t specify the sum insured
- Excess of indemnity value contracts
- Definition of property
- Stock in trade
- Goods in transit
Circular 1999/3 – subject headings are:
- Property in the course of construction or alteration
- Statement of policy regarding property in the course of construction or alteration – contract works insurance
- Single project insurance
- Annual declaration construction insurance
- Annual turnover construction insurance
Note: Goods and Services Tax (GST) is payable on the levy.