In general terms: The occupiers of a property are liable, regardless of tenure, or the owners if the property is unoccupied, except if the property is a 'house in multiple occupation', in which case the landlord is liable for paying the Council Tax.
Calculation
Each dwelling is allocated to one of eight bands coded by letters A to H on the basis of its assumed capital value as of 1 April 1991 and newer properties than this are assigned a nominal 1991 value. Each local authority sets a tax rate expressed as the annual levy on a Band D property inhabited by two liable adults. This decision automatically sets the amounts levied on all types of households and dwellings. The nominal Band D property total is calculated by adding together the number of properties in each band and multiplying by the band ratio. So 100 Band D properties will count as 100 nominal Band D properties, whereas 100 Band C properties will count as 89 nominal Band D properties. Each collecting authority then adds together the Band D amounts for their area to reach a total Band D council tax bill. To calculate the council tax for a particular property a ratio is then applied. A Band D property will pay the full amount, whereas a Band H property will pay 245% of that figure.
Current bands
Council Tax bands as of April 2017, and ratios levied, are:
Band
Value
proportion of band D
Ratio as %
A
up to £27,000
240/360
67%
B
£27,001 to £35,000
280/360
78%
C
£35,001 to £45,000
320/360
89%
D
£45,001 to £58,000
360/360
100%
E
£58,001 to £80,000
473/360
131%
F
£80,001 to £106,000
585/360
163%
G
£106,001 to £212,000
705/360
196%
H
£212,001 and above
882/360
245%
Criticism
Collection of unpaid tax
Criticism has been levied not so much at the principle of the tax but at its debt collection arrangements: Community Charge and Council Tax debts can be pursued up to 40 years later – few people will have conserved their payment receipts for such a long time and as such are unable to prove that they paid. Under Scottish Law, it is the responsibility of the tax payer to prove that the tax has been paid, not for the council to prove that it has not. John Wilson MSP presented an Enforcement of Local Tax Arrears Bill on 19 March 2010 in order to try to reduce this collection time from 20 to 5 years. Although Wilson's bill has not made any progress, the Scottish parliament has passed the Community Charge Debt Bill to stop Councils pursuing debts from the older Community Charge, though there are some scrutiny stages to go through before it can become law.
