Issue - meetings

The purpose of this paper is to provide Cabinet with details of the Governments Technical Reforms to Council Tax.  The report also sets out the recommended changes to council tax exemptions for approval in the light of the new powers.

RESOLVED:  i)   That Cabinet agrees to approve the recommendations for changes to council tax exemptions as set out at Paragraphs 6 to 33 of the report.

ii) That a report back be provided to Cabinet in 12 months to include collection data to ensure that the proposed changes are working correctly. 

REASON:            To increase the amount of council tax liability in 2013/14 and keep Members updated. 

The Cabinet considered a report which provided them with details of the Governments technical reforms to Council tax and recommended changes to council tax exemptions in light of new powers.

In summary the changes were:

(a)           giving billing authorities power to levy up to full council tax on second homes;

(b)           replacing exemption Classes A and C with discounts, the amount of  which would be for billing authorities to determine;

 (c)     abolishing Class L exemptions, and making mortgagees in possession of empty dwellings liable to council tax in respect of them;

 (d)     allowing billing authorities to levy an ‘empty homes premium’ in respect of dwellings which had been left empty for two years or more;

(e)      setting a default assumption that payment of council tax by instalments will be over twelve months rather than (as is currently the case) ten;

(f)       allowing authorities to publish online the ‘Information to be supplied with demand notices’, but with a duty to supply it in hardcopy to any council tax payer requesting it – as an efficiency measure, and to encourage the take-up of electronic billing;

 (g)  changes to eliminate potential tax complications from arrangements involving third party suppliers where solar panels were placed on the roofs of dwellings without coming into the paramount control of the residents.

Further information regarding the financial benefits, recommendations and potential risks were set out at paragraphs 6 to 33 of the report together with the following suggested options:

Option 1 – To agree the recommendations at Paragraphs 6 – 33 and approve them on the basis that the Finance Bill was enacted;

Option 2 – To not agree the recommendations and leave exemptions as they currently were

Option 3 – To approve different levels of exemption to those recommended.

Following discussion it was

RESOLVED:  i)   That Cabinet agrees to approve the recommendations for changes to council tax exemptions as set out at Paragraphs 6 to 33 of the report. ^1.

ii) That a report back be provided to Cabinet in 12 months to include collection data to ensure that the proposed changes are working correctly. ^2. 

REASON:            To increase the amount of council tax liability in 2013/14 and keep Members updated.