BOROUGH OF POOLE CABINET 9 JANUARY 2018 COUNCIL TAX - DETERMINATION OF TAX BASE: REPORT OF THE HEAD OF FINANCIAL SERVICES

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1 AGENDA ITEM 7 BOROUGH OF POOLE CABINET 9 JANUARY 2018 COUNCIL TAX - DETERMINATION OF TAX BASE: REPORT OF THE HEAD OF FINANCIAL SERVICES PART OF PUBLISHED FORWARD PLAN: YES STATUS STRATEGIC POLICY 1. PURPOSE AND POLICY CONTEXT 1.1. The purpose of this report is to show the calculations required in order to determine the tax base for the Borough of Poole for 2018/ A formal decision must be made in order that the tax base can be notified to the Dorset Police and Crime Commissioner and to Dorset and Wiltshire Fire and Rescue Authority by 31 January The information shown in paragraph 2.1(b) will be used to set the council tax to be levied in 2018/2019. Council tax will be set by Council at its meeting on 20 February DECISION REQUIRED 2.1. The Cabinet be asked to approve: (a) (b) (c) The Report of the Head of Financial Services for the calculation of the Borough s tax base for the year 2018/2019; That pursuant to the Head of Financial Services report, and in accordance with the Local Authorities (Calculation of Council Tax Base) (England) Regulations 2012, the amount calculated as the Council Tax Base for the Borough of Poole for the year 2018/2019 shall be 57,181; This decision will be acted upon on the day following cabinet. It is not subject to call in with the exception of process. 3. DETERMINATION OF TAX BASE 3.1. The first stage in the calculation of the tax base is to determine the relevant amounts. The relevant amount for each council tax band is the measure of the number of dwellings in that band after taking account of exempt dwellings, discounts, premiums, the council tax reduction scheme and allowing for additions. 1

2 The relevant amount is presented as a band D equivalent number. The tax base is the number of properties that will pay the equivalent of a full band D charge. The proportion of all properties in relation to band D is shown in Appendix A. The actual calculations of the relevant amounts required for each band, is presented and described in Appendix A. In summary, the totals of these are: Band Relevant Amount A 1,800 B 6,673 C 16,669 D 11,107 E 9,070 F 5,355 G 5,117 H 1,909 Total of Relevant Amounts 57, The Local Authorities (calculation of Council Tax Base) Regulations 2012 prescribe how the calculations should be made. In essence, the formula for the calculation of the tax base is: (a) the total of the relevant amounts for the year, 57,700 MULTIPLIED BY (b) the estimated collection rate Estimated Collection Rates: Collection rate is the billing authority s estimate of the total amounts in respect of its Council Taxes for the year which will be ultimately paid. In considering the rate that is set for 2018/19 regard continues to be given to the changes to the population that are liable for council tax and to the continuing economic pressures. In year monitoring indicates that current collection rates are still valid. It is recommended that the rate is retained at 99.1% for 2018/ Tax Base: (a) The Council Tax Base for the Borough of Poole is therefore recommended to be 57,700 x 99.1% = 57,181 ADAM RICHENS CHIEF FINANCE OFFICER AND HEAD OF FINANCIAL SERVICES BACKGROUND PAPERS Nil Name and Telephone Number of Officer Contact Kerrie Eggleton,

3 APPENDIX A The Relevant Amount 1. The relevant amount for each council tax band is a measure of the number of dwellings in that band after taking account of exempt dwellings and discounts. 2. The resultant figures are then multiplied by the proportion which that band bears to band D. (Appendix B) 3. The legislation is prescriptive in how the relevant amount for each band should be calculated. A brief summary of this is described below. a) the number of chargeable dwellings in 30 November 2017 valuation list less the authority s estimate of the number of such dwellings which were exempt on that day. ADJUSTED FOR b) the estimated number of disabled person s relief reductions moving to the next lower band below during 2018/2019, as amended by The Local Authorities (Calculation of Tax Base) (England) Regulation LESS c) the factor to take account of the discounts to which the amount of council tax payable was subject on the 30 November PLUS d) the factor to take account of premiums, if any. PLUS e) is the amount of any adjustment in respect of changes in the number of chargeable dwellings, discounts or premiums and is expressed as the estimated net additions to the list between 30 November 2017 and 31 March 2019 LESS f) the total amount that is estimated to be applied in accordance with the authority s council tax reduction scheme in relation to the band, expressed as an equivalent number of chargeable dwellings in that band 3

4 1 Total Number of dwellings on the Valuation List 30 November Number of dwellings on valuation list with exemption 3 Number of demolished dwellings and dwellings outside area of authority 4 Number of chargeable dwellings (treating demolished dwellings etc as exempt) (lines 1-2-3) 5 Number of chargeable dwellings in line 4 subject to disabled reduction 6 Number of dwellings effectively subject to council tax for this band by virtue of disabled relief (line 5 after reduction) 7 Number of chargeable dwellings adjusted in accordance with lines 5 and 6 (lines or in the case of column 1, simply line 6) 8 Number of dwellings in line 7 entitled to a 25% discount 9 Number of dwellings in line 7 entitled to a 25% discount due to all but one resident being disregarded for council tax purposes 10 Number of dwellings in line 7 entitled to a 50% discount due to all residents being disregarded for council tax purposes. 11a Number of dwellings in line 7 classed as second homes no discount 11b Number of dwellings in line 7 classed as second homes discount (re employment) entitled to disabled relief reduction Column 1 Column 2 Band B Column 3 Band C Column 4 Band D Column 5 Band E Column 6 Band F Column 7 Band G Column 8 APPENDIX A Band H Column 9 TOTAL COLUMN 10 4,958 12,102 22,814 12,439 8,151 3,985 3,236 1,017 68, , ,782 11,941 22,401 12,216 8,053 3,933 3,204 1,003 67, ,805 12,023 22,365 12,199 8,038 3,915 3, , ,093 5,178 6,070 3,096 1, , ,

5 12 Number of dwellings in line 7 classed as empty and receiving zero % discount. entitled to disabled relief reduction Column 1 Column 2 Band B Column 3 Band C Column 4 Band D Column 5 Band E Column 6 Band F Column 7 Band G Column 8 APPENDIX A Band H Column 9 TOTAL COLUMN Number of LTE liable for 50% premium Number of dwellings in line 7 assumed to be 3 1,648 6,689 15,957 8,915 6,192 3,092 2, ,956 entitled to no discounts or premium (100%) (Line 7 Lines 8,9,10,11b,13) 15 Number of dwellings in line 7 assumed to be 4 3,157 5,334 6,408 3,284 1, ,577 subject of a discount or premium (Lines b+13) 16 Number due to council tax reduction scheme 2 1,339 2,211 2, , Reduction due to Family Annex discount Total number of dwellings after discounts, exemptions and disabled relief (line 8 x 0.75) + (line 9 x 0.75) + (line 10 x 0.5) +(line 11b x 0.5) + (line 13 x 1..5) +line 14 line 16- line 17) 4 2,667 8,485 18,675 10,847 7,408 3,668 3, , Ratio to band D 5/9 6/9 7/9 8/9 9/9 11/9 13/9 15/9 18/9 20 Number of band D equivalents (line 15 x line 16) 20 Number of band D equivalents of contributions in lieu (in respect of Class O exempt dwellings) 2 1,778 6,599 16,600 10,847 9,055 5,298 5,072 1,898 57, Estimated net number of additions Total of relevant amounts 2 1,798 6,673 16,669 11,107 9,070 5,355 5,117 1,909 57, Assumed collection of 99.1% = Tax Base 57,181 5

6 APPENDIX B BOROUGH OF POOLE BAND PROPORTIONS BAND VALUES PROPORTION RELATIONSHIP ( 000) TO BAND D A Up to /9 B /9 C /9 D /9 E /9 F /9 G /9 H /9 ie: band A properties pay 6/9 of band D properties. band H properties pay twice the amount payable by band D properties. 6