Local Government (Business Improvement Districts) Act 2006
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Entry year property levy. |
7.— The Principal Act is amended by inserting the following Part after Part 19: | |
“PART 19A | ||
ENTRY YEAR PROPERTY LEVY | ||
Definitions. | ||
211A.— In this Part: | ||
‘ entry date ’, in relation to qualifying property, means the date on which the first rateable valuation for that property is entered on the valuation list; | ||
‘ entry year ’, in relation to qualifying property, means the financial year in which the property is first entered on a valuation list; | ||
‘ levypayer ’, in relation to qualifying property, means the person liable to pay the levy in respect of that property under section 211B(6); | ||
‘ post-entry year ’ means the financial year following the entry year for a qualifying property; | ||
‘ qualifying property ’ means property that is subject to the levy under section 211B(1); | ||
‘ rating authority area ’ has the same meaning as in the Valuation Act 2001 ; | ||
‘ relevant property ’ has the same meaning as in the Valuation Act 2001 . | ||
Entry year property levy. | ||
211B.— (1) When newly erected or newly constructed relevant property comes into being in a rating authority area and the property is first entered on the valuation list relating to that area, the rating authority concerned shall impose and collect a levy in respect of that property in accordance with this section. | ||
(2) Property that is not rateable pursuant to section 15(2), (3) or (4) of the Valuation Act 2001 is not subject to the levy under subsection (1) of this section. | ||
(3) Subject to subsection (4), the amount of the levy under subsection (1) is to be determined by the formula | ||
(A x B) x (C/D) | ||
where | ||
A is the annual rate on valuation that was determined by the rating authority for the entry year pursuant to section 103(7)(b)(i), | ||
B is the rateable valuation of the property, | ||
C is the number of days remaining in the entry year, beginning with the entry date, and | ||
D is the total number of days in the entry year. | ||
(4) If qualifying property is unoccupied on the entry date, the amount of the levy is to be determined by applying the formula set out in subsection (3) and dividing that result by 2. | ||
(5) Notice of the levy shall be sent by post or otherwise delivered to the person liable to pay the levy for the qualifying property under subsection (6) (the ‘levypayer’) and the notice shall include the following information: | ||
(a) the amount of the levy; | ||
(b) the date by which the levy is due and payable and the manner in which it is to be paid. | ||
(6) The following are liable to pay the levy under this section: | ||
(a) the person who is in occupation of the qualifying property on the entry date; | ||
(b) if the qualifying property is unoccupied on the entry date, the person who owns the property on that date. | ||
(7) The date specified under subsection (5)(b) may not be less than 14 days from the date that the notice is sent under that subsection. | ||
(8) The levypayer shall pay the full amount of the levy to the rating authority by the date specified under subsection (5)(b). | ||
(9) The levy for which a levypayer is liable under this section is recoverable as a simple contract debt in any court of competent jurisdiction and, if there is more than one levypayer in respect of the qualifying property, those levypayers are jointly and severally liable for that levy. | ||
(10) A levy is not invalidated by any error or defect in the statement of the name of the levypayer in the notice under subsection (5) or by the use of the description ‘the owner’ or ‘the occupier’ without any name or addition, and the levy is recoverable from the levypayer notwithstanding any such error or defect or the use of any such description. | ||
(11) For the purposes of this section and section 211E, qualifying property is ‘unoccupied’ if the person who owns the property on the entry date (the ‘owner’) satisfies the rating authority that— | ||
(a) the owner was not occupying the property on that date, | ||
(b) no other person was entitled to the use or enjoyment of the property on that date, and | ||
(c) acting in good faith, the owner was genuinely unable to find a suitable tenant for the property at a reasonable rent. | ||
Recalculation of levy in event of total destruction or demolition of property. | ||
211C.— (1) If during the entry year qualifying property is demolished or destroyed to the extent that it is incapable of rateable occupation by the owner of the property, the levypayer may apply in writing to the rating authority concerned for a refund or credit on the amount of the levy paid or payable under section 211B. | ||
(2) On receiving the application and being satisfied that the condition described in subsection (1) has been met, the rating authority shall prorate the amount of the levy that was paid or is payable for that portion of the entry year during which the property is incapable of rateable occupation and that prorated amount shall be— | ||
(a) refunded to the applicant levypayer, in the case where the levy has already been paid in full, | ||
(b) refunded to the applicant levypayer to the extent that any partial payment of the levy that has been made would result in an overpayment because of the application of this subsection, or | ||
(c) if paragraphs (a) and (b) do not apply, credited to the account of the applicant levypayer. | ||
Recalculation of entry year levy if rateable valuation amended. | ||
211D.— (1) This section applies if— | ||
(a) the levypayer has paid the levy payable in respect of qualifying property under section 211B, | ||
(b) the rateable valuation of the property changes during the entry year because of amendment to the valuation list described in section 28 of the Valuation Act 2001 , and | ||
(c) the levypayer has not received a refund or credit under section 211C in respect of the property. | ||
(2) As soon as reasonably practicable after amendment of the rateable valuation of the property described in subsection (1), the entry-year levy for that property shall be recalculated by the rating authority under section 211B(3) or (4), as the case may be, using the same annual rate on valuation but the amended rateable valuation for the property, and the recalculated amount shall be prorated based on the number of days remaining in the entry year, beginning with the date that the rateable valuation is amended. | ||
(3) If, as a result of the recalculation under subsection (2), the payment of the levy described in subsection (1)(a) involved an overpayment, then the rating authority shall pay to the levypayer a refund in the amount of that overpayment. | ||
(4) If, as a result of the recalculation under subsection (2), the payment of the levy described in subsection (1)(a) involved an underpayment, then— | ||
(a) the levypayer is liable for the balance owing, | ||
(b) the balance owing may be recovered from the levypayer by the same means provided under section 211B, and | ||
(c) the provisions of section 211B(5) to (10) apply for the purposes of that recovery. | ||
(5) If— | ||
(a) the amended rateable valuation for the property referred to in subsection (2) is consequently the subject of an appeal under Part 7 of the Valuation Act 2001 , and | ||
(b) after all appeals under that Part have been exhausted, the final rateable valuation of the property for the entry year is different than it was for purposes of the recalculation under subsection (2), | ||
the rating authority shall recalculate the entry-year levy for that property under section 211B(3) or (4), as the case may be, using the same formula applied in those provisions except where ‘B’ is now the final rateable valuation for the property referred to in paragraph (b) of this subsection. | ||
(6) If, as a result of recalculation under subsection (5), the amount of money paid by the levypayer in respect of the entry-year levy involved an overpayment or an underpayment, then— | ||
(a) in the case of an overpayment, subsection (3) applies, and | ||
(b) in the case of an underpayment, subsection (4) applies. | ||
Post-entry year property levy in specified circumstances. | ||
211E.— (1) If qualifying property is first entered on the valuation list relating to a rating authority area after the rating authority concerned determines the annual rate on valuation for the post-entry year pursuant to section 107(3)(b)(i), the rating authority shall impose and collect an additional levy in respect of that property in accordance with this section. | ||
(2) Subject to subsection (3), the amount of the levy under subsection (1) is to be determined by the formula | ||
A x B | ||
where | ||
A is the annual rate on valuation that was determined by the rating authority for the post-entry year pursuant to section 103(7)(b)(i), and | ||
B is the rateable valuation of the property. | ||
(3) If the property referred to in subsection (1) is unoccupied on the entry date, the amount of the levy is to be determined by applying the formula set out in subsection (2) and dividing that result by 2. | ||
(4) Notice of the levy shall be sent by post or otherwise delivered to the levypayer and the notice shall include the following information: | ||
(a) the amount of the levy; | ||
(b) the date by which the levy is due and payable and the manner in which it is to be paid. | ||
(5) The date specified under subsection (4)(b) may not be less than 14 days from the date that the notice is sent under that subsection. | ||
(6) The levypayer shall pay the full amount of the levy to the rating authority by the date specified under subsection (4)(b). | ||
(7) The provisions of section 211B(9) and (10) apply for purposes of recovery of the levy under this section and any references in those provisions to section 211B shall be construed as references to this section. | ||
(8) The provisions of section 211C apply in respect of a qualifying property that may be subject to the post-entry year levy under this section and, for that purpose, the following rules of construction apply: | ||
(a) any references in those provisions to section 211B shall be construed as references to this section; | ||
(b) any references in those provisions to ‘entry year’ shall be construed as references to ‘post-entry year’. | ||
Recalculation of post-entry year levy if rateable valuation amended. | ||
211F.— (1) This section applies if— | ||
(a) the levypayer has paid the levy payable in respect of qualifying property under section 211E, | ||
(b) the rateable valuation of the property changes during the post-entry year because of amendment to the valuation list described in section 28 of the Valuation Act 2001 , and | ||
(c) the levypayer has not received a refund or credit in respect of the property pursuant to section 211E(8). | ||
(2) As soon as reasonably practicable after amendment of the rateable valuation of the property described in subsection (1), the post-entry year levy for that property shall be recalculated by the rating authority under section 211E(2) or (3), as the case may be, using the same annual rate on valuation but the amended rateable valuation for the property, and the recalculated amount shall be prorated based on the number of days remaining in the post-entry year, beginning with the date that the rateable valuation is amended. | ||
(3) If, as a result of the recalculation under subsection (2), the payment of the levy described in subsection (1)(a) involved an overpayment, then the rating authority shall pay to the levypayer a refund in the amount of that overpayment. | ||
(4) If, as a result of the recalculation under subsection (2), the payment of the levy described in subsection (1)(a) involved an underpayment, then— | ||
(a) the levypayer is liable for the balance owing, | ||
(b) the balance owing may be recovered from the levypayer by the same means provided under section 211E, and | ||
(c) the provisions of section 211E(4) to (7) apply for the purposes of that recovery. | ||
(5) If— | ||
(a) the amended rateable valuation for the property referred to in subsection (2) is consequently the subject of an appeal under Part 7 of the Valuation Act 2001 , and | ||
(b) after all appeals under that Part have been exhausted, the final rateable valuation of the property for the post-entry year is different than it was for purposes of the recalculation under subsection (2), | ||
the rating authority shall recalculate the post-entry year levy for that property under section 211E(2) or (3), as the case may be, using the same formula applied in those provisions except where ‘B’ is now the final rateable valuation for the property referred to in paragraph (b) of this subsection. | ||
(6) If, as a result of recalculation under subsection (5), the amount of money paid by the levypayer in respect of the post-entry year levy involved an overpayment or an underpayment, then— | ||
(a) in the case of an overpayment, subsection (3) applies, and | ||
(b) in the case of an underpayment, subsection (4) applies.”. |