Issue - meetings

Introduction of Council Tax Premium for empty and second homes

Meeting: 16/02/2016 - Cabinet (Item 143)

143 Introduction of Council Tax Premium for empty and second homes pdf icon PDF 104 KB

Additional documents:

Decision:

As detailed in the recommendations.

Minutes:

The Chief Officer (Community and Enterprise) provided details of the introduction of a premium which was designed to address local housing need and encourage owners of empty and second home properties to bring those properties back into full use.

 

            The introduction of a premium was designed to address local housing need and to encourage owners of empty and second home properties to bring those properties back into full use.  The determination to charge a premium must be made by County Council at least one year before the beginning of the financial year to which the premium related.  This meant that the earliest a premium could be changed from was 1st April 2017.

 

            There was evidence that demonstrated that some owners sat on empty properties for long periods of time without having plans in place to bring the properties into use.  This was often despite best efforts of the Council to work with owners to encourage them to bring their asset back into use, either by accessing loans or grants. 

 

            Using the taxation system to encourage owners to bring long term empty property and second homes back into use would provide a sensible financial incentive to do so and potentially help to increase the supply of housing in the County.  Current Council Tax records indicated that 888 properties as being long term empty or second homes which could be potentially liable for the premium from April 2017.

 

            Councillor Bithell welcomed the report and asked if going through probate could be an exemption to the taxation.  The Chief Officer said she would obtain that information and respond to Councillor Bithell outside of the meeting.

 

            In response to a question, the Chief Officer explained that for Council Tax purposes the following year, the Council Tax table could show two different amounts for Band D for example, one as was currently shown and one column showing the amount for empty properties.

 

RESOLVED:

 

(a)       That the Council Tax premium scheme be introduced from 2017/18;

 

(b)       That a 50% premium be adopted for the first year of implementation in 2017/18 which will be consistent with other local authorities across the region; and

 

(c)        That the premium level be reviewed during the first year of implementation in 2017/18 with a view to increasing the rate from 2018/19 after taking into consideration the effectiveness of the new policy of incentivising owners to bring long term empty properties and second homes back into full use.