Second homeowners in North Yorkshire will be the first in the country to pay double council tax on their properties.
Next Tuesday, North Yorkshire County Council’s Executive, Richard Flinton is due to consider launching a 100% council tax premium on second homes and houses that have been left unoccupied for a year or more from April 1, 2024.
The decision has come from last year’s Rural Commission recommending that the money made from increasing the tax on second homes be used to finance affordable housing in the area.
This will enable younger families to settle down in North Yorkshire as currently house prices are higher than average wages.
However, there are concerns on whether this policy will provoke council tax avoidance.
In a report presented to Mr Flinton, the council states it will use ‘mechanisms available’ to clamp down on couples who own second homes and are falsely claiming they live separately.
The council warns of financial penalties if untrustworthy information is provided.
As well as the concerns over couples providing false information regarding their housing situation, councillors are also concerned owners will transfer their properties to holiday lets to qualify for discounted business rates.
Ahead of the debate on Tuesday, Green Party Group Coordinator, Andy Brown said the areas in North Yorkshire that are facing ‘being hollowed out of permanent residents’ there is a strong case for raising council tax.
He added that the tax increase should apply to ‘anyone who rents a property out using short term online letting companies’ as well as second homeowners.
However, County Council Independent Group Leader Councillor, Stuart Parsons described the idea as ‘one of the stupidest suggestions the Tory government has come up with’.
Mr Parsons has argued the idea will create more damage as people will find loopholes to ‘dodge out of paying the premium as they wish.’
Photo by Dave Lowe
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