Issue - meetings

To adopt a Council Tax Reduction Policy under Section 13A(1)(c) of the Local Government Finance Act 1992 to provide officers with clear guidance and boundaries on the use of reductions and exemptions from the standard Council Tax and the Premium. 

The report was submitted by Cllr Huw Wyn Jones

DECISION

To adopt a Council Tax Reduction Policy under Section 13A(1)(c) of the Local Government Finance Act 1992 to provide officers with clear guidance and boundaries on the use of reductions and exemptions from the standard Council Tax and the Premium. 

DISCUSSION

It was stated that Section 13A(1)(c) of the Local Government Finance Act 1992 gave the Council additional discretionary powers to reduce the amount of Council tax payable by individuals or classes of taxpayers.

It was highlighted that the Council used Section 13A of the 1992 Act to introduce local, optional exceptions in very limited cases.

Consideration had been given to cases that had been submitted to the Finance Department over several years in the formulation of the proposed Policy. It was added that these could be applications for a reduction in basic Council Tax, the Premium, or both.

It was noted that an exemption from the basic Tax using Section 13A was a direct cost on the Council's coffers, so that setting a precedent that could harm the Council financially in the long-term must be avoided.

It was mentioned that the Welsh Government was currently in consultation, which may lead to the modification of some of the statutory exemptions. It was noted that the Policy would be kept under ongoing review, and modified as any legislative changes were introduced.

It was highlighted that this proposed Policy would enable each application to be considered on its own merits. The importance of tax service officers having clear guidelines to follow was stressed, adding that having a panel to consider applications was a means of achieving consistency in decisions.

Observations arising from the discussion:

·       A question was asked about the enforcement on local second home owners to pay a Premium backdated to years ago before the new Legislation came into effect. It was noted that several properties had been transferred back from a business tax band to a Council tax band since the introduction of the new legislation. It was highlighted that the effective date of when Council Property Tax was due was set by the Valuer's Office and that the Council must act accordingly. This was elaborated upon by noting that several of these second homes that were returning to the Council tax band also fell under the Premium, as no one lived in them. It was noted that this Policy enabled the Council to explore all the exemptions available to them, and provided the power to be able to explore specific cases.