Agenda item - Council Tax Discounts and Exemptions reform

Extract from the proceedings of the Policy & Resources Committee meeting held on the 29^th November 2012, together with a report of the Director of Finance (copies attached).

62.1         Councillor Littman introduced the report stated that he wished to place his thanks to the officers involved in producing the report on record.  He believed that the proposals were excellent and that the changes would encourage a greater turnover of empty properties.

62.2         Councillor A. Norman welcomed the report and the flexibility that the proposed changes provided in terms of council tax and hoped that it would encourage the release of long-term empty properties.  She also thanked the officers involved in producing the report and sought clarification in regard to paragraph 3.1.3 and the ability to extend the 6-month period in exceptional circumstances.

62.3         Councillor Hamilton welcomed the report and stated that he believed in provided the potential to raise extra income and hoped that the turnover of empty properties would be speeded up.

62.4         Councillor Peltzer Dunn stated that he supported the proposals and hoped that genuine home-owners who had to leave their property would not be penalised if they failed to sell their homes within the 6-month period.  He noted that the Leader of the Council had stated that cases would be treated on their individual merits at the Policy & Resources Committee meeting.

62.5         Councillor J. Kitcat welcomed the support for the report and its proposals and noted that there were approximately 15,000 people on the housing waiting list.  He hoped that the changes would encourage landlords to release properties and a behavioural change that would see long-term empty property numbers reducing.  He also confirmed that the scheme’s flexibility meant that cases could be treated on their merits and extensions granted in exceptional circumstances.

62.6         Councillor Wealls queried the value of the consultation process which had not been obligatory and had not resulted in any real benefit and therefore suggested that there was a need to give consideration to the cost of such consultation exercises in the current economic climate.

62.7         Councillor Littman noted the comments and thanked the cross-party scrutiny panel for their recommendations and stated that where appropriate exceptional cases would be treated on their merits.  He believed the consultation process had been worthwhile and noted that it was expected that 70% of improvements would be undertaken within the 6-week period.

62.8         The Mayor noted that the recommendations had been moved and put them to the vote.

62.9         RESOLVED:

(1)         That the Council abolishes the 10% Second Home Discount, meaning that those liable for Second Homes will pay full Council Tax from 1 April 2013;

(2)         That the Council retains the current arrangement for empty dwellings undergoing repair or structural work, namely that liable parties will receive a 100% discount for up to 12 months, or for 6 months after work is complete, whichever is sooner. This provision is currently known as a “Class A Exemption”;

(3)         That the Council introduces a period of up to six weeks 100% discount for dwellings that are empty and unfurnished, to replace the current six month exemption known as Class C;

(4)         That officers will have discretion, (a) to give an additional period of up to six weeks 100% discount after a change of liable party and (b) in exceptional circumstances, to extend the six week 100% discount to an absolute maximum of three months;

(5)         That the Council introduces an Empty Home Premium at the maximum 50%, meaning that those liable for empty dwellings will have to pay 150% Council Tax after two years of the dwelling remaining empty;

(6)         Accordingly that the Council makes the formal determinations and decisions for the financial year commencing on 1 April 2013 and subsequent financial years as set out in Appendix 4;

(7)         That the Director of Finance and other relevant officers identified in the Council’s Scheme of Delegations to Officers as responsible for local taxation services and revenues and benefits, be authorised to take all appropriate steps to implement and administer the recommendations, including publishing in accordance with statutory requirements; and

(8)         That the Head of Law be authorised to amend the Council’s constitution by the addition in Part 3.1 (Council Functions) of a new paragraph in section 3.01 after the paragraph relating to Policy and Budget: “Council Tax: Exercising any function which, under section 67 of the Local Government Finance Act 1992, may only be discharged by the authority.

Note:

62.10    The Mayor then adjourned the meeting for a refreshment break 6.15pm.

62.11    The Mayor reconvened the meeting at 7.00pm.