Finance (Local Property Tax) Act 2012

Power of elected members of local authority to vary basic rates.

20.— (1) In this section—

“local authority” does not include a town council within the meaning of the Local Government Act 2001 ;

“Minister” means the Minister for the Environment, Community and Local Government.

(2) Where the passing of such a resolution is a reserved function of a local authority, a local authority may pass a resolution that the basic rate should stand varied (either upwards or downwards) by a specified percentage in respect of relevant residential properties situated in the local authority’s functional area.

(3) Where a local authority passes a resolution under subsection (2), the rate of local property tax, in respect of relevant residential properties situated in the local authority’s functional area, shall be the basic rate, increased or decreased, as the case may be, by the local adjustment factor.

(4) Where a local authority passes a resolution under subsection (2), it shall notify the Minister in writing that it has passed the resolution and of the local adjustment factor.

(5) The local adjustment factor shall not exceed 15 per cent.

(6) The Minister may make regulations with respect to the setting of the local adjustment factor and those regulations may, in particular and without prejudice to the generality of the foregoing, include provision for—

(a) specifying the matters to which a local authority must have regard when setting a local adjustment factor in respect of a liability date,

(b) the public consultation process that must be followed by a local authority before that factor is set by it (including publication of its proposal with respect to the factor in one or more newspapers circulating in its functional area),

(c) the nature and extent of consultation with other persons,

(d) the persons who must be informed when a local adjustment factor is set,

(e) any other procedural matter which the Minister may deem necessary.