PAPER D

 

Committee:    AUDIT AND PERFORMANCE COMMITTEE

 

Date:               13 MARCH 2007

 

Title:                COMMUNICATION BETWEEN THE PLANNING DEPARTMENT AND THE COUNCIL’S REVENUES TEAM REGARDING BUILDING DEVELOPMENTS AND CHANGES OF USE

 

REPORT OF THE PROGRAMME LEAD FOR COMPLIANCE

 

            PURPOSE

 

1.                  Concerns have been raised by the Audit and Performance Committee as to whether information regarding proposed building works to existing properties and the building of new home and business developments is communicated by the Planning Department to the Revenues Team.

 

ACTION REQUIRED

 

(a)The Committee is asked to note the report; and

 

(b)To make any further recommendations for improvement if appropriate.

 

BACKGROUND

 

2.                  The property database is held within the Northgate /SX3 system, accessed by Revenues staff, and is updated on receipt of information from the Valuation Office (an agency of central government – the Island’s local office being in Southampton). The process for reporting these changes has been reviewed and is documented below.

 

3.                  The Revenues Operational Support Team receive reports from the Planning Department, on a monthly basis, identifying properties where planning permission has been granted and building work commenced. The information on new building developments is recorded on a  ‘visits’ spreadsheet from which weekly visits are scheduled and passed to the Council Tax Visiting Officer for action. The information regarding alterations and change of use are passed directly to the Valuation Office.

 

4.                  The Visiting Officer visits the new developments and reports on progress. A review date is given to each property so building works can be monitored and the spreadsheet is updated. The visits are rescheduled in line with the review date until an estimated completion date is agreed. In normal circumstances the developer will tie the completion date of the property being sold to that of the date the property being deemed habitable. However, if there is no vendor for the property and the property is deemed complete then the developer is billed for the council tax. An exemption can be applied for, if appropriate.

 

5.                  When the work is near to completion a report is compiled, a copy of which is forwarded to the Valuation Officer for inclusion in the Valuation List. Whilst the Valuation Officer is considering a valuation band the Council Tax Team make contact with the new occupiers and provide a ‘dummy’ account with a provisional banding, to enable payment to be collected thereby ensuring that the revenue is collected promptly.

 

6.                  With regard to the changes in use of properties the Valuation Office will advise the Revenues Team of any amendment to the valuation list by means of the weekly schedule. These adjustments will be applied to the Council Tax or NNDR (National non domestic rates) database and, if appropriate, amended demand notices will be issued.

 

7.                  Information received from the Planning Team, in respect of existing properties which are under going work, i.e. extensions or roof conversions, is routinely passed to the Valuation Officer where it is held on file. When there is a change of ownership of the property the Valuation Team will review the Council Tax Banding as required in legislation and decide whether to increase the value. This takes account of extensions or enhancements made to the property by the current owner which will affect the value of the property. In summary, the council tax band will not change as a result of enhancements until the property is sold. If there is any change the Revenues Team are advised by means of the weekly schedule and again make the adjustments on the Revenues database.

 

8.                  There are nominated officers in both the Revenues and the Planning Department to liaise, share information and resolve any problems.

 

9.                  It is also worth mentioning at this point that there are formal processes for liaison between the Council’s Electoral Services team and the Revenues Team. When the Revenues Team serves a completion notice on any developer, they also send a copy to Electoral Services. Electoral services also receive information in relation to the ‘naming and numbering’ of streets from the Council’s Highways department.

 

CONCLUSION

 

10.             It can be concluded therefore that there does appear to be sufficient liaison between the two Council departments to ensure that the Council’s tax database is maintained appropriately.

 

STRATEGIC CONTEXT

 

11.             The significance of this issue is that by ensuring that the Council maximises its tax revenue by maintaining its database of properties that are liable, the Council is able to distribute the tax burden over a wider part of the community and in a more equitable manner (albeit that the effects on individuals would be unnoticeable).

 

CONSULTATION

 

12.             The need for consultation on this issue is limited.

 

FINANCIAL IMPLICATIONS

 

13.             It is essential that there is good liaison between the two teams as it ensures that the Council Tax Base is kept up to date, thereby maximising the collection of Council Tax and National Non Domestic rates.

 

LEGAL IMPLICATIONS

 

14.             There are no legal implications arising from this report

 

RISK MANAGEMENT

 

15.             There are no significant risk implications arising from this report. Close communication and liaison between the two teams will help to counter the risk that the tax base is understated and will enhance the amount collected.

 

RECOMMENDATIONS

 

16.             The Committee is recommended to note the report.

 

 

BACKGROUND PAPERS

 

17.             None.

 

APPENDICES

 

18.             None.

 

 

Contact Point: Bob Streets, Programme Lead for Compliance  ( 01983 823622, email: [email protected]

 

 

 

 

BOB STREETS

Programme Lead for Compliance