THROUGHOUT the week, The National has taken an in-depth look at council tax and potential proposals to change it for the better.
We started the week by speaking to a range of experts on potential alternatives to the tax with different systems having various pros and cons.
Now, we want to hear from you about which system you would prefer to replace the tax.
There’s a brief description of each of them below and a poll at the end for you to cast your vote – but make sure to have a read of the full piece explaining each individual system HERE.
Land Value Tax
This is a tool for raising public revenue via an annual charge depending on the value of a given parcel of land.
The basic idea behind the system is that pieces of land get their value from their location as opposed to the quality of the development sitting on them – what gives the location it value is the surrounding infrastructure.
Local income tax and Scottish Service Tax
The Scottish Socialist Party are among those to have previously called for an income-based Scottish Service Tax.
This would effectively be based on a person’s ability to pay through a series of tax bands and progressively rising taxation rates.
For example, this would see the first £12,000 of a person’s income be entirely exempt; the income bracket £12,000-£30,000 would pay 4.5% towards local jobs and services, peaking at a 20% service tax on all income above £100,000.
Full revaluation
One of the key criticisms of council tax is its use of outdated property valuations, with both Scotland and England using property values as assessed in April 1991.
Therefore, a full revaluation of domestic property, so that all properties can be allocated to the correct band, would be one potential way of addressing the system.
According to the Low Incomes Tax Reform Group, this could not be a one-off with regular revaluations needed so out-of-date valuations don’t become an issue again.
Annual Ground Rent
For SNP activist Graeme McCormick, Annual Ground Rent (AGR) would replace all taxation in Scotland.
It would mean one single ground rent based solely on land ownership.
McCormick explained: “If you own land or buildings, you’ll pay AGR. A bit less in the country and a bit more in the city centre.
“AGR is fair, simple to calculate and easy and cheap to collect.”
You can read our full interview with McCormick HERE to find out more. Now that you’ve read through all the options, vote in our poll on the best alternative below.
