Agenda item

To submit the report of the Head of Function (Resources)/Section 151 Officer.

Submitted – the report of the Head of Function (Resources)/Section 151 Officer with regard to whether to charge Council Tax premiums for long-term empty dwellings and for dwellings occupied periodically (usually known as second homes) from 1 April 2017 and if the decision is to do so, to determine the percentage level of the Council Tax premium for long-term empty dwellings and for dwellings occupied periodically (usually known as second homes) for 1 April, 2017. 

The Head of Function (Resources)/Section 151 Officer reported that legislative changes were made by the Housing (Wales) Act 2014 to give local authorities discretionary powers on whether to charge a premium on long-term empty dwellings or second homes (or both).  The 2014 Act amended the Local Government Finance Act 1992 by inserting new sections 12A and 12B to enable a billing authority (county council or county borough council) in Wales to disapply any discount granted to long-term empty dwellings and dwellings occupied periodically and apply a higher amount of council tax (a premium).  Local authorities will now have discretion to decide on the amount of the premium from 0% up to a maximum of 100% of the standard rate of council tax that applies to the dwelling.  A billing authority can make, vary or revoke a determination made under Sections 12A and 12B of the 1992 Act, but only before the beginning of the financial year to which the determination applies.  For second homes however, a billing authority must make its first determination under Section 12B at least one year before the beginning of the financial year to which the premium applies.  This means in order to charge a premium from 1 April, 2017, a billing authority must make its determination for second homes before 1 April, 2016.  It was reported that the Executive at its meeting held on 1 March, 2016 resolved to recommend to the full Council that the Council Tax Premium be set at 25% of the standard rate of council

tax for both long-term empty dwellings and for dwellings occupied periodically

(usually known as second homes).

Members stated that there is a dire need for houses for young local families on the Island and supported the increase in the Council Tax Premium.  It was expressed that empty houses need to be made available to rent or buy in local communities.  Some Members considered that the Council Tax Premium should be increased to 30%.                                                   

It was RESOLVED :-

1. The Isle of Anglesey County Council (“Full Council”), as a billing authority in Wales, uses its discretionary powers, under sections 12A and 12B of the Local Government Finance Act 1992 (“the 1992 Act”) as inserted by the Housing (Wales) Act 2014 (“the 2014 Act”) to disapply any discount(s) granted to long-term empty dwellings and dwellings occupied periodically (usually known as second homes) and apply a higher amount of council tax (called a Council Tax Premium) to

come into effect from 1 April 2017.

2. That the Council Tax Premium be set at 25% of the standard rate of council tax for both long-term empty dwellings and for dwellings occupied periodically (usually known as second homes), and that

a review of the Council Tax premiums be undertaken by the Head of Function (Resources) and Section 151 Officer during 2018/19 (after the first full year of operation of the Council Tax premiums) to establish if the premiums determined have met the aims of the Executive and the Full Council and whether, as a consequence, the premium levels determined need to be varied or revoked when the Full Council sets its Council Tax requirement for 2019/20. The revised premiums, if applicable, will then come into force from 1 April 2019 onwards.

3. That the Full Council instructs and authorises the Head of Function (Resources) and Section 151 Officer to :–

i. To publish a notice of its determination to charge a premium in a local newspaper within 21 days of its decision;

ii. To communicate its decision, also within 21 days and in particular to those affected, by publication of press notices, providing information on website pages or other avenues to raise awareness. This to include direct communication with council taxpayers who are likely to be

liable for the premium and in particular to those who normally reside outside the local authority area;

iii. To ensure administrative arrangements are put in place to establish (before the Executive calculates the Council Tax Base for 2017/18 and the Full Council sets its Council Tax requirement for 2017/18) the estimated number of long-term empty dwellings and dwellings

occupied periodically (usually known as second homes) that will be eligible to be charged a Council Tax premium under the 1992 Act, as inserted by the 2014 Act, subject to the exceptions allowed by regulations;

iv. To ensure that administrative arrangements are put in place for the proper administration and enforcement of the Council Tax premium from 1 April 2017 onwards and notes that the Executive agrees in principle (subject to the Executive’s approval) to any additional resources that is deemed necessary (by the Head of Function (Resources) and Section 151 Officer), to ensure that there is proper administration and enforcement of the Council Tax premium, which

will initially include, establishing the estimated number of dwellings where the Council Tax premium will apply.

4. That the Full Council, also instructs and authorises the Head of Function (Resources) and Section 151 Officer, that before the Executive calculates the Council Tax Base for 2017/18 and the Full

Council sets its Council Tax requirement for 2017/18, the Executive and the Full Council (as a billing authority in Wales), is advised whether it needs to determine under section 13A of the 1992 Act to use its discretionary powers to reduce council tax liability resulting from a Council Tax premium being charged, to such extent it thinks fit. For fairness and transparency, should such a determination be required, advice is to be provided if the Full Council should adopt a clear policy on whether and how these powers will be used, with appropriate delegated decision making authority being provided for in the Council’s Constitution but also recognising that each case is considered on its merits having taken into account the circumstances of each case.