By David Scott in Crieff
2 September 2010
The proposals follow a year-long inquiry into local tax by the Institute of Revenues, Rating and Valuation. They include measures such as the ‘localisation’ of VAT and lottery tax, in addition to supplementary taxes in areas including tourism, refuse collection and pollution.
The institute was due to submit a final report to its Scottish conference at Crieff on September 1. However, the inquiry committee instead presented a survey of ‘emerging findings’, which include proposals for interim reform measures to the existing council tax system as well as long-term plans for a ‘modernised’ property tax.
The interim reform measures are seen as a precursor to a more comprehensive reform at a later stage.
They include the introduction of additional council tax valuation bands, regular revaluations, the enhancement of enforcement procedures and the improvement of tax recovery through data sharing.
In the longer term, a modernised local property tax would be based on Northern Irish-style ‘discrete’ capital values, which would involve setting values using computer-aided mass appraisal and geographical information techniques.
Significantly, each council would be allowed to set its own rate of taxation for different ranges of property. The local tax would be set as a percentage of assessed capital value.
It is understood there are differences of opinion within the IRRV about the interim proposals put forward.
However, chief executive David Magor said it was appropriate that the IRRV inquiry fully considered the implications of the economic environment before publishing its final report, which was
now timed for the end of this year. He cited the current deficit reduction programme, the forthcoming Spending Review report and the consultation on benefits reform.
‘We want the reforms to be radical,’ he added. ‘We have a real opportunity to look at the options for change.’
The report also suggested that the current year-on-year council tax freeze should end as it could not sustain the present level of service provided by local government, even in the medium term.
‘Change is needed and needs to be embraced,’ it said. ‘In this report we identify an innovative and tailored solution to Scotland’s current local taxation dilemma.’
2 September 2010
Scottish local authorities should be given a discretionary power to raise supplementary taxes, according to proposals for local taxation reform drawn up by leading revenue and valuation officials. It would be up to individual councils to decide which taxes would be appropriate to their local area.
The proposals follow a year-long inquiry into local tax by the Institute of Revenues, Rating and Valuation. They include measures such as the ‘localisation’ of VAT and lottery tax, in addition to supplementary taxes in areas including tourism, refuse collection and pollution.
The institute was due to submit a final report to its Scottish conference at Crieff on September 1. However, the inquiry committee instead presented a survey of ‘emerging findings’, which include proposals for interim reform measures to the existing council tax system as well as long-term plans for a ‘modernised’ property tax.
The interim reform measures are seen as a precursor to a more comprehensive reform at a later stage.
They include the introduction of additional council tax valuation bands, regular revaluations, the enhancement of enforcement procedures and the improvement of tax recovery through data sharing.
In the longer term, a modernised local property tax would be based on Northern Irish-style ‘discrete’ capital values, which would involve setting values using computer-aided mass appraisal and geographical information techniques.
Significantly, each council would be allowed to set its own rate of taxation for different ranges of property. The local tax would be set as a percentage of assessed capital value.
It is understood there are differences of opinion within the IRRV about the interim proposals put forward.
However, chief executive David Magor said it was appropriate that the IRRV inquiry fully considered the implications of the economic environment before publishing its final report, which was
now timed for the end of this year. He cited the current deficit reduction programme, the forthcoming Spending Review report and the consultation on benefits reform.
‘We want the reforms to be radical,’ he added. ‘We have a real opportunity to look at the options for change.’
The report also suggested that the current year-on-year council tax freeze should end as it could not sustain the present level of service provided by local government, even in the medium term.
‘Change is needed and needs to be embraced,’ it said. ‘In this report we identify an innovative and tailored solution to Scotland’s current local taxation dilemma.’
