The Commission on Local Tax Reform is back on the political agenda in Scotland after an expert commission said that the current system for funding councils "must end".
Here, HeraldScotland answers all your questions on local tax reform and what it means for you.
What is the commission on local tax reform?
Shortly after becoming First Minister, Nicola Sturgeon announced that a commission would be set up to examine reform of local taxation. All five of Holyrood's parties were invited to send representatives, although the Tories boycotted the talks. Academics, charity representatives and tax experts were also among 14 participants.
What's the problem with the Council Tax?
There are a few, but the main one is a widespread acknowledgement that it isn't fair. Those who live in mansions, perhaps worth upwards of £1 million, pay only three times more than those in the lowest valued homes, which might be worth 20 times less. Although some relief is available through the welfare system, in general poorer people pay, as a proportion of their incomes, substantially more than the better off.
Has reform been tried before?
Yes, and it is arguably the biggest single failure of the Scottish Parliament since devolution that this remains unresolved. The findings of the Burt Report, which in 2006 recommended an annual charge based on property value to replace the council tax, were famously disowned by then-First Minister Jack McConnell before it was even published. The SNP won the Holyrood election in 2007 after promising to introduce a local income tax, but these plans were shelved after they won power.
Why is reform so difficult?
Unlike 'invisible' levies like VAT, everybody receives a council tax bill and a physical effort is required to pay it. This means voters are more likely to notice unpopular rises and react accordingly. Inevitably, reform means some will pay more and any party pursuing radical reform risks a backlash at the ballot box. This explains why politicians have been reluctant to touch the council tax with a barge pole.
Will I pay more?
Under the models under discussion, it is likely that the better off, in more expensive homes, will pay more. Those in cheaper homes would be likely to see their bills reduce. But the commission has said any new system should be introduced gradually to allow the losers of reforms to adjust. However, it remains to be seen what will be proposed in party manifestos.
What happens now?
It is expected that Holyrood's political parties will consider the report and put their preferred model to voters in May. Sweeping changes will require new laws and a new system will not be in place before the local government elections in 2017. If the latest efforts at introducing a fairer method of local taxation are successful - and that remains a big if at this stage - it could be several years before a new system comes into force.
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