AN expert group examining alternatives to the council tax has found that most consider the current system to be unfair but opinion split on what should replace it.

The Commission on Local Tax Reform, which was set up by Nicola Sturgeon and is backed by all Holyrood parties except the Tories, revealed that around two-thirds of responses to its written call for evidence opposed the council tax, which was branded regressive with poorer households paying proportionately more than rich.

However, there was disagreement over whether a reformed property tax, a local income tax or the most radical of the more prominent options - a land value tax - should be adopted instead.

Under a land value tax, a levy would be calculated as a proportion of the value of land, with no account taken of what is built on it. Advocates say it would boost productivity by providing an incentive to put land to good use and be impossible to avoid, while opponents believe it would be unfair on 'property rich, cash poor' homeowners and be unpopular with the public.

Broadly the same proportion of more than 200 organisations and individuals backed each option, with local government representatives tending to favour a reformed property tax and a land value tax preferred by policy, tax and economic interest groups.

The findings of the Commission will be published ahead of next year's Holyrood election, with a view to informing the manifestos of the parties vying for votes.

Marco Biagi, the SNP local government minister and co-chair of the Commission, said: "The findings of our formal call for evidence suggest very strongly that there are a majority of people in Scotland who agree that the current system of council tax is unfair and in need of reform.

"However, what is also clear is that there are a wide range of opinions as to what a potential replacement for the present system would look like and operate, echoing many of the views that we have heard from the more than 4,000 people who have engaged with us so far.

"The Commission takes the findings of this analysis very seriously and we will use these to shape a report that that will allow everyone to understand what any alternative local taxation systems would mean to the people of Scotland."

The SNP, which opinion polls suggest is on course to win another Holyrood majority next year, previously favoured a local income tax although its plans were dropped during its first term in office. The party has imposed a council tax freeze, which has proved expensive and broadly unpopular with councils but a vote winner with the wider public, since 2008.

The freeze was highlighted as a key concern by respondents to the call for evidence, with many saying it had contributed to cuts which were having a major impact on public services and undermined the link between local taxation and communities.

It was suggested that the proportion of local government funding raised locally should be closer to 50 per cent. Currently, less than a third of councils’ total income is within their direct control, with just over 10p in every pound coming from council tax.

Labour councillor David O’Neill, President of local authority group COSLA and Commission co-chair, added: "It is clear that there are a lot of different opinions out there as to what might constitute a fairer way of paying for local government.

"By engaging with as many people and organisations as possible, through this call for evidence, questionnaire and public engagement events, we are making sure that the views of people the length and breadth of Scotland are a fundamental pillar of our efforts to set out a range of alternative tax models that can be considered by whichever government is formed next May."