Who will the levy be paid to?
Potatoes New Zealand Inc
PO Box 10232, The Terrace, WELLINGTON 6143
Phone: 0800 399 674
Email: vasb@cbgngbrfam.pb.am
Website: www.potatoesnz.co.nz
Commodity that is to be levied
All potatoes grown for commercial purposes including seed, fresh domestic, gate sales, farmers markets, processing and exporting. Imported potatoes will not be levied.
Who will be responsible for paying the levy?
All commercial potato growers (including those producing for seed, export, the domestic fresh market, gate sales, farmers markets andprocessing).
Any commercial potato growers who objects on conscientious or religious grounds to paying levy in the manner provided for by the levy order, will be able to pay the levy to the Chief Executive of the Ministry administering the proposed levy. In such cases the Chief Executive will pay the levy to Potatoes New Zealand.
How will the levy be calculated?
The levy will be calculated as a percentage of gross value (before deduction of costs and charges) at the first point of sale for seed, fresh domestic, gate sales, farmers markets, processing and exporting, or where potatoes are processed prior to the first point of sale (e.g. by the grower) when the levy will be a percentage of the notional value that, in the opinion of Potatoes New Zealand, the potato grower would have received for it if immediately before it was processed the grower had sold it to a similar processor situated in the same locality.
Who is to be exempt from paying the levy?
No commercial potato grower will be exempt from paying the levy.
How the levy is to be paid?
Growers will pay the levy via levy collectors. Levy collectors (including: seed merchants, wholesalers, pack houses, auctioneers, brokers, produce distribution centres, retailers, exporters and processors) who buy potatoes from or sell potatoes on behalf of growers will collect the levy at the first point of sale and will pay the levy to Potatoes New Zealand.
However, in the case of sales direct to the public or grower-own exports or grower-own processing, growers will pay the levy directly to Potatoes New Zealand.
The period (s) in respect of which the levy funds are to be paid Collection agents
The due date for payment of the levy by a collection agent is the date on which the collection agent deducts the levy from the grower. The latest date for payment of the levy by the collection agent is the 20th day of the month following the deduction of levy from the grower.
Direct sales by growers
If potatoes are sold directly to the public by growers, or commercially processed by growers, or exported by growers, the due date for payment of the levy is 30 June, for sales during the preceding 12 months. The latest date for payment is 30 September in the same calendar year.
Penalty for late payment
If any levy money (or any goods and services tax payable on that money) has not been paid on or before the latest date as described above, Potatoes New Zealand must add a penalty of 10% to the amount owing at the end of the first month that the debt remains outstanding, and a further 2% to the amount owing including any previous penalties at the end of each additional months the amount remains outstanding.
Levy collection fee
Levy collectors will be entitled to retain a collection fee of up to 4% (plus GST) of the amount collected.
Will there be different levy rates?
All potatoes will be levied at one single rate.
How much will the levy be?
The maximum rate of levy will be 1% ($1 per $100) of:
- The gross sales value (before deduction of costs and charges) at the first point of sale for potatoes sold.
- The notional process value for growers who process their own potatoes.
The rate for the initial levy year will be 0.85% (85 cents per $100). The rates are GST exclusive.
How will the actual levy rate be set?
The rates for any levy year will be set by a vote at Potatoes New Zealand’s Annual General Meeting except in the initial year when the rate will be set by Potatoes New Zealand’s Directors. Where no rate is set the rate of levy in the previous year will be applicable.
The initial levy year will be the period from the commencement of the levy order until 30 September 2025. Subsequent levy years will be the 12 months ended 30 September.
How the levy rates are to be notified?
Where the levy rates differ from that applicable in the previous year they will be notified in the Gazette, in the “NZ Grower” magazine or other industry publication, and in the Potatoes New Zealand email newsletter and by direct mail to all known potato growers and Levy Collectors.
Record keeping requirements
Growers who pay levies directly to Potatoes New Zealand will be required to retain records of the levy payments made and the sales that those levies were deducted from for at least two years from the date of payment of the levy to Potatoes New Zealand. Growers whose levies are paid by collection agents will be required to retain records of levy payments made, the sales that those levies were deducted from and the name and address of the collection agent for at least two years from the date of payment of the levy.
Levy collection agents will be required to retain records of the levy payments made, the sales that those levies were deducted from and the details (including the grower’s name, trading name and postal address) of growers they have collected levies from in the past two years.
Potatoes New Zealand may make a written request for the above information from growers or collection agents for the purpose of enabling or assisting the determination of any amount of levy payable. The information must be provided to Potatoes New Zealand in writing as soon as reasonably practicable after the request is received.
Potatoes New Zealand will retain records of levy payments received for at least two years after the date of payment of the levy.
Disclosure of sensitive or commercial information
Potatoes New Zealand may disclose information to any extent required by law or for the following purposes:
- For the purposes of collecting levy money from each levy payer or collection agent.
- For producing records or accounts under section 17(1) of the Commodity Levies Act 1990 (which relates to the rights of the Minister to have accounts audited);
- For producing any statement under section 25 of the Commodity Levies Act 1990 which relates to annual reports and statements);
- Necessary in the giving of evidence in any legal proceedings taken under or in relation to this order, or under the Commodity Levies Act 1990 in relation to this order;
- For statistical or research purposes but in such a form that does not identify any individual levy payers or levy collectors.
For all other purposes neither Potatoes New Zealand nor any of its officers nor employees will disclose any information which it obtains as a result of collection or administration of levies without first obtaining the consent of the person or organisation providing the information, and the person or organisation to whom the information relates.
How Potatoes New Zealand will spend the levy?
It is proposed that the levies will be spent by Potatoes New Zealand Inc for the following purposes relating to potatoes or potato growers:
- Research and Development;
- Market Development and Promotion;
- Development of Quality Assurance;
- Education and training;
- Information and communication;
- Day to day administration of Potatoes New Zealand;
- Biosecurity readiness and response;
- Grower Representation.
Potatoes New Zealand will consult with growers on how the levy is spent through grower representatives and at the Potatoes New Zealand Conference, Annual General Meeting and any Special General Meeting which may be held. The levy will not be spent on any trading or commercial activity.