AGENDA ITEM 7

BOROUGH OF POOLE

CABINET

30 JANUARY 2007

COUNCIL TAX - DETERMINATION OF TAX BASE

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 2007/2008.

1.2.A formal decision must be made in order that the tax base can be notified to the Dorset Police Authority and to The Fire Authority by 31 January 2007, in the financial year preceding that to which the tax base applies.

1.3.The information shown in paragraph 2.1(b) will be used to set the Council Tax to be levied in 2007/2008. Council Tax will be set by Council at its meeting on 15 February 2007.

2.DECISION REQUIRED

2.1.The Cabinet be asked to approve :

(a)The report of the Head of Financial Services for the calculation of the Borough’s tax base for the year 2007/2008;

(b)That pursuant to the Head of Financial Services’ report, and in accordance with the Local Authorities (Calculation of Tax Base) Regulations 1992 as amended, the amount calculated as the Council Tax Base for the Borough of Poole for the year 2007/2008 shall be 57,244:

3.DETERMINATION OF TAX BASE

3.1.The Relevant Amounts

The actual calculations of the relevant amounts required for each band, as described in Appendix B are set out in Appendix C. In summary, the totals of these are:

BandRelevant Amount

A2,236

B7,556

C17,488

D10,663

E8,680

F5,030

G4,460

H1,419

Total of Relevant Amounts57,532

3.2.The Local Authorities (calculation of Council Tax Base) Regulations 1992 as amended prescribe how the calculations should be made. In essence, calculations under the 1992 Regulations have to be made of the ‘relevant amount’ for 2007/2008 for each of the valuation bands shown in the Council’s valuation list as notified to it as at 30 November 2006.

The tax base is the number of properties which 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 formula for the calculation of the tax base is:

(a)the total of the relevant amounts for each valuation band for the year,

MULTIPLIED BY

(b)the estimated collection rate

The various components of this calculation are described at Appendix B.

3.4Estimated 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.

It is recommended that the rate of 99.5% is retained for 2007-08.

3.5Tax Base:

(a)The Council Tax Base for the Borough of Poole is therefore recommended to be 57,532 x 99.5% = 57,244

BOB JACKSON

HEAD OF FINANCIAL SERVICES

BACKGROUND PAPERS

Nil

Name and Telephone Number of Officer Contact

Mandy May, 01202-633178

APPENDIX A

BOROUGH OF POOLE

BAND PROPORTIONS

BANDVALUESPROPORTIONRELATIONSHIP

(£000)TO BAND D

AUp to4066/9

B40-5277/9

C52-6888/9

D68-8899/9

E88-1201111/9

F120-1601313/9

G160-3201515/9

H320 +1818/9

ie:band A properties pay 6/9 of band D properties.

band H properties pay twice the amount payable by band D properties.

APPENDIX B

BOROUGH OF POOLE

  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.
  1. The resultant figures are then multiplied by the proportion (See Appendix A) which that band bears to band D.
  1. 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 2006 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 2007/2008, as amended by The Local Authorities (Calculation of Tax Base) (Amendment) (England) Regulation 1999.

LESS

c)the reduction required to take account of discounts to which the amount of council tax payable was subject on the relevant day using the relevant percentages . (This means the reductions that would have been made to the number of dwellings if the authority had not invoked its ability to reduce discounts from 50%)

PLUS

d)the estimated additions to the list between 30 November 2006 and 31 March 2008

LESS

b)the authority’s estimate of the effective number of properties which will not be chargeable for part of the year.

PLUS

c)the increase in number of properties in the band arising from the reduction in discounts given.

EQUALS CHARGEABLE DWELLINGS

2.The estimated collection rate must be calculated as follows:

i)estimate of council tax amounts likely to be received, net of any benefit and disabled person’s relief

PLUS

ii)estimate of amounts likely to be granted for benefits, and

EXPRESSED AS A PROPORTION OF

iii)estimate of council tax levied, net of benefit and disabled person’s relief

PLUS

iv)estimate of total benefits and relief granted in relation to iii) above.

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APPENDIX C

Band A entitled to disabled relief
reduction COLUMN 1 / Band A
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 7 / Band H
COLUMN 9 / TOTAL
COLUMN 10
1 / Total Number of dwellings on the Valuation List 30 November 2005 / 4,213 / 11,273 / 22,047 / 11,595 / 7,741 / 3,791 / 2,934 / 785 / 64,379
2 / Number of dwellings on valuation list exemption (Class A to W exemptions) / 204 / 379 / 651 / 296 / 181 / 103 / 97 / 31 / 1,942
3 / Number of demolished dwellings and dwellings outside area of authority / 1 / 0 / 1 / 2 / 1 / 3 / 1 / 0 / 9
4 / Number of chargeable dwellings (treating demolished dwellings etc as exempt) (lines 1-2-3) / 4,008 / 10,894 / 21,395 / 11,297 / 7,559 / 3,685 / 2,836 / 754 / 62,428
5 / Number of chargeable dwellings in line 4 subject to disabled reduction / 8 / 44 / 140 / 70 / 47 / 35 / 27 / 22 / 393
6 / Number of dwellings effectively subject to council tax for this band by virtue of disabled relief (line 5 after reduction) / 8 / 44 / 140 / 70 / 47 / 35 / 27 / 22 / 0 / 393
7 / Number of chargeable dwellings adjusted in accordance with lines 5 and 6 (lines 4-5+6 or in the case of column 1, simply line 6) / 8 / 4,044 / 10,990 / 21,325 / 11,274 / 7,547 / 3,677 / 2,831 / 732 / 62,428
8 / Number of dwellings in line 7 entitled to a 25% discount / 4 / 2,740 / 5,311 / 6,728 / 3,011 / 1,737 / 727 / 491 / 76 / 20,825
9 / Number of dwellings in line 7 entitled to a 25% discount due to all but one resident being disregarded for council tax purposes / 1 / 29 / 114 / 200 / 89 / 62 / 20 / 9 / 0 / 524
10 / Number of dwellings in line 7 entitled to a 50% discount due to all residents being disregarded for council tax purposes. / 0 / 2 / 3 / 4 / 6 / 6 / 14 / 23 / 5 / 63
11 / Number of dwellings in line 7 classed as second homes and so treated for RSG purposes as being entitled to a 50% discount (even if a lower discount has been granted in practice). / 56 / 163 / 259 / 255 / 275 / 239 / 322 / 107 / 1,676
12 / Total number of dwellings in line 7 entitled to a 50% discount for RSG purposes (Lines 10+11) / 0 / 58 / 166 / 263 / 261 / 281 / 253 / 345 / 112 / 1,739
13 / Number of dwellings in line 7 classed as long-term empty and receiving 10% discount. / 110 / 123 / 148 / 121 / 69 / 38 / 55 / 26 / 690

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14 / Number of dwellings in line 7 where there is liability to pay 100% council tax (lines 7-8-9-12-13) / 3 / 1,107 / 5,276 / 13,986 / 7,792 / 5,398 / 2,639 / 1,931 / 518 / 38,650
15 / Total number of dwellings after discounts, exemptions and disabled relief (line 8 x 0.75) + (line 9 x 0.75) + (line 12 x 0.5) + (line 13 x 0.9) +line 14) / 7 / 3,312 / 9,538 / 19,447 / 10,356 / 6,950 / 3,360 / 2,528 / 654 / 56,152
16 / Ratio to band D / 5/9 / 6/9 / 7/9 / 8/9 / 9/9 / 11/9 / 13/9 / 15/9 / 18/9
17 / Number of band D equivalents (line 15 x line 16) / 4 / 2,208 / 7,419 / 17,286 / 10,356 / 8,494 / 4,853 / 4,213 / 1,309 / 56,142
18 / Number of band D equivalents of contributions in lieu (in respect of Class O exempt dwellings) in 2005/06 / 155 / 155
19 / Estimated net number of additions / 9 / 86 / 110 / 50 / 52 / 39 / 32 / 24 / 402286.8
20 / Second Homes discount reduction / 15 / 51 / 92 / 102 / 134 / 138 / 215 / 86 / 833
21 / Total of relevant amounts / 4 / 2,232 / 7,556 / 17,488 / 10,663 / 8,680 / 5,030 / 4,460 / 1,419 / 57,532
22 / Assumed collection of 99.5% / 57,244

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