Agenda item

DETERMINATION OF COUNCIL TAX DISCOUNTS 2020/21

Summary:

 

 

 

 

 

 

 

 

 

Options considered:

This report sets out alternative options for the level of council tax discounts which Full Council will resolve shall apply to classes of dwelling for the financial year 2020/21.

 

The determinations are made by the Council under sections 11A and 11B, and of the Local Government Finance Act 1992, subsequent enabling powers and Regulations made under the Act.

 

The recommendations take advantage of the reforms included in the Local Government Finance Act 2012 as amended to generate additional revenue. 

 

Conclusions:

 

The legislation provides local authorities with the power to make changes to the level of council tax discount in relation to classes of property. The Council has to approve its determinations for each financial year. The calculation of the tax base for 2020/21 will be made on the assumption that the determinations recommended below will apply. 

 

Recommendations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reasons for

Recommendations:

 

 

Members recommend that Full Council shall resolve that under section 11A of the Local Government Finance Act 1992, and in accordance with the provisions of the Local Government Finance Act 2012 and other enabling powers one of the following applies:

 

Recommendation 1

 

(a)          The discounts for the year 2020/21 and beyond are set at the levels indicated in the table at paragraph 2.1.

(b)          The premium for long term empty properties (those that have been empty for a consecutive period longer than 24 months) is set at 100% of the Council Tax charge for that dwelling

(c)           The premium for long term empty properties (those that have been empty for a consecutive period longer than 60 months) is set at 200% of the Council Tax charge for that dwelling

(d)          To continue to award a local discount of 100% for eligible cases of care leavers under section 13A of the Local Government Finance Act 1992 (as amended).

(e)          That an exception to the levy charges may be made by the Section 151 Officer in conjunction with the Portfolio holder for Finance, on advice of the Revenues Manager in the circumstances laid out in section 3.6 of this report.

 

Recommendation 2

 

(a)          those dwellings that are specifically identified under regulation 6 of the Council Tax (Prescribed Classes of Dwellings)(England) Regulations 2003 will retain the 50% discount and;

(b)          those dwellings described or geographically defined at Appendix A which in the reasonable opinion of the Head of Finance and Asset Management are judged not to be structurally capable of occupation all year round and were built before the restrictions of seasonal usage were introduced by the Town and Country Planning Act 1947, will be entitled to a 35% discount.

   

In accordance with the relevant legislation these determinations shall be published in at least one newspaper circulating in North Norfolk before the end of the period of 21 days beginning with the date of the determinations.

 

 

To set appropriate council tax discounts which will apply in 2020/21 in accordance with the legal requirements and to raise additional council tax revenue.

 

 

Cabinet Member(s)

Cllr E Seward

Ward(s) affected

All

 

Contact Officer, telephone number and email:

Lucy Hume, 01263 516246, lucy.hume@north-norfolk.gov.uk

 

Minutes:

Cllr E Seward (PH for Finance) introduced the Report, and informed Members that the RM was in attendance to answer any specific revenue related questions.

 

Questions and Discussion

 

Cllr E Seward informed Members that the Report had been approved by Cabinet on 7th October, and outlined that the key changes were to Council Tax premiums charged on empty properties. It was noted that this charge had been a 50% premium for empty properties, whereas now the premiums could be raised to 100% for properties empty for two years or more, and 200% for properties empty for five years or more.

 

It was reported that there were currently 146 properties in the district that had been empty for two or more years, and 49 that had been empty for five or more years. Cllr E Seward stated that the Council Tax premiums were a maximum inducement to bring down the number of empty properties in the district.

 

The RM stated that he and the Combined Enforcement Team Leader considered all options to encourage owners of empty properties to bring them back into use. He added that discretion would now also be available to premium charges in cases of development or difficulties. In response to a question from the Chairman, the RM confirmed that this discretion had not yet been utilised, as it was a new policy. He added that in some cases a 200% premium would discourage developers, but this discretion to relax premiums could encourage development by allowing limited flexibility in special cases.

 

The Chairman asked for the definition of an empty property, which the RM defined as unoccupied and unfurnished, with long-term being defined as six months or more. He added that in addition to the proposed premiums identified in the Report, it was expected that next year a further penalty could be introduced on properties unoccupied for ten or more years.

 

Cllr N Pearce asked for clarification on whether there was any leeway on the changeover period for bringing a property back into use. It was confirmed that new owners would be liable for payments from the first day of ownership, though properties would not be considered unoccupied if furnished. The RM reminded Members that single occupants were still entitled to a 25% discount.

 

Cllr L Shires referred to revenue data on properties in Eccles, and asked what could be done to bring these properties back into use. Cllr E Seward replied that these properties were not unoccupied, but paid lower Council Tax rates as a result of discounts applied due to poor road surfaces.

 

Cllr H Blathwayt asked for clarification on chalet and beach hut rates collection. The RM replied that whilst the Council acted as the collection authority, the rates themselves were set by the Valuation Office. He added that the difference between the two was a planning issue, as the Chalets were likely built prior to the implementation of seasonal planning regulations, meaning seasonal exemptions did not apply. The HECD provided further clarification that beach huts and chalets were not dwelling properties, but leased and licensed with no overnight stays permitted, meaning they were not subject to dwelling rates.

 

Cllr N Pearce proposed to commend the Report to Council and Cllr J Toye seconded the proposal.

 

RESOLVED

 

To commend the Report to Council.

Supporting documents: