More income from Council Tax is expected as a result of a range of revised charges which are likely to be introduced by the York Council.

The changes come as a result of the Coalition governments “localism” policy which allows local authorities more flexibility in managing their financial arrangements.

The changes include:

1. Levying full Council Tax on second homes – Currently these properties enjoy a 10% discount. Homes tied to jobs would not be affected. The chance could bring in an additional £100,000

2. Replacing Council Tax exemption Classes A (homes needing structural repairs) and C (property empty between lets) with a discount limited to 1 year. In York the discount would be 50% and together these changes could bring in around £600,000 in Council Tax.

3. abolishing Class L (Mortgage defaults) exemptions, and making mortgagees in possession of empty dwellings liable to council tax in respect of them;. Introduction of this is being deferred to allow for more discussion with mortgage companies.

4. allowing billing authorities to levy an ‘empty homes premium’ in respect of dwellings which have been left empty for two years or more. In York it is estimated that this 50% premium could bring in around £64,000 from the 154 long term empty homes in the City.

5. setting a default assumption that payment of Council Tax by instalments will be over 10 months The Council however must inform the council tax payer that they have a legal right to pay by 12 instalments.

6. allowing authorities to publish online the ‘Information to be supplied with demand notices’, (but with a duty to supply it in hardcopy to any council tax payer requesting it) as an efficiency measure, and to encourage the take-up of electronic billing;

7. changes to eliminate potential tax complications from arrangements involving third party suppliers where solar panels are placed on the roofs of dwellings without coming into the paramount control of the residents. The Government is proposing that where these are fitted to domestic properties by a third party for profit they are classed as part of the property. This will not increase the value of the property (For Council Tax purposes) but will avoid a complex case by case review by the valuation office for non-domestic rates. The Government have adopted this proposal with a cap at 10kW.

A detailed report can be found by clicking here: http://tinyurl.com/York-tax-changes