PAPER B4

                                                                                                                                                      

Purpose: For Decision

 

Committee:    REPORT TO THE EXECUTIVE

 

Date:               15 JANUARY 2003

 

Title:                COUNCIL TAX BASE 2003/04

 

REPORT OF THE PORTFOLIO HOLDER FOR RESOURCES

 

                                    Implementation Date : 27 January 2003

 

 

SUMMARY

 

1.         It is now necessary to set the Council Tax base for the 2003/04 financial year i.e. the number of equivalent Band D properties on which the Council Tax and Police Authority precepts are calculated.

 

OPTIONS

 

2.                  This is a statutory requirement.

 

 

Text Box: RECOMMENDATIONS 3. That the report of the Strategic Director for Finance and Information and County Treasurer for the calculation of the Council’s Tax Base, for the whole and parts of the area, be approved and recommended to the Council. 4. That the amounts of the Tax Base for the financial year 2003/04 be as detailed in Appendix B.

FINANCIAL IMPLICATIONS

 

5.                  The Council Tax Base forms the basis of calculating individual Council Tax requirements for the 2003/04 financial year.

 

CONTENT

 

6.                  The Council must set the Tax Base by no later than 31 January 2003 and notify the tax base to the Police Authority by that date.  The Council meeting on the 22nd January 2003 will therefore need to consider the recommendations of the Executive.

 

7.                  The Local Government Changes for England (Calculation of Council Tax Base)

 

Regulations requires this Council as a Billing Authority to notify any major precepting bodies and Parish/Town Councils, on request, by 31 January 2003 of the Tax Base for the whole or part of the area for the following financial year.

 

8.         The Tax Base is calculated from information on the Valuation List as compiled by the Inland Revenue Valuation Offices.  Dwellings fall into eight different valuation bands, A to H, and are assessed by the Valuation Office.  The Tax Base is then calculated in terms of Band D equivalent properties using the following weightings:

 

  Band                                    Valuation                                          Band D

                                                                                                            Equivalent

                                                                                                            Weighting

         A                                    Up to £40,000                                          6/9

         B                                    £40,001 - £52,000                                  7/9

         C                                    £52,001 - £68,000                                  8/9

         D                                    £68,001 - £88,000                                  9/9

         E                                    £88,001 - £120,000                              11/9

          F                                    £120,001 - £160,000                            13/9

         G                                    £160,001 - £320,000                            15/9

         H                                    More than  £320,000                            18/9

 

9.         The current number of Band D equivalent properties is detailed at Appendix A.  The analysis shows the Band D Equivalent Tax Base for the whole and part area of the Island.  The figures as presented also allow for discounts, exemptions and banding reductions arising from disabled applications.

 

10.       It is then necessary to adjust the Tax Base for anticipated non-collection of Council Tax and for changes in the Valuation List which could arise for a variety of reasons such as appeals, new properties and deletions from the list.  For 2003/2004 and having regard to the current and previous collection rates, I would propose continuing a total allowance of a 0.8% reduction across the whole and parts of the area, in respect of non collection and any changes in the Valuation List.  The reductions in Band D equivalents across the Tax Base arising from this proposed provision and the subsequent Local Tax Base are detailed at Appendix B.

 

BACKGROUND PAPERS

 

11.             Council Tax Base working papers

12.       Local Government Changes for England (Calculation of Council Tax Base) Regulations

 

Contact Point:            Gareth Hughes,                     (Tel. No. (01983) 823604)

 

J PULSFORD

Strategic Director Finance and Information and County Treasurer

R R BARRY

Portfolio Holder for Resources