What is Council Tax?

Council tax is a form of taxation that is levied on households by local authorities. It’s a tax on domestic property which helps to pay for local services.

What services does council tax pay for?

1. Local Education: This includes primary and secondary schools, and special education needs services.
2. Road Maintenance: This covers street cleaning, road repairs, traffic management, and public transportation services.
3. Waste Management: This includes rubbish collection, recycling, and disposal.
4. Public Safety: This includes funding for local police and fire departments, along with community safety initiatives.
5. Health and Social Care: Services for children and families, elderly care, mental health services, and other health and social services are funded in part by council tax.
6. Leisure and Recreation: Council tax helps fund public libraries, parks, sports facilities, and other recreational activities.
7. Housing Services: This includes housing needs assessments, housing benefits, and housing policy development.
8. Environmental Health: Services such as food safety, pollution control, and public health initiatives are also funded in part by council tax.
9. Council Administration and Other Services: This includes planning and development, elections, licensing, and other administrative functions of the local council.

It’s important to note that while council tax helps to fund these services, it doesn’t cover the entire cost. Local authorities also receive funding from the Scottish Government, UK government and from other sources, such as business rates.

In Scotland, your Council Tax bill includes water and sewerage charges, so there is no separate water bill to pay. These charges are collected by the local council on behalf of Scottish Water, which is the publicly owned company responsible for water and sewage services across Scotland.

How is Council Tax calculated?

According to gov.uk, there are three things that determine how much council tax you have to pay.

1. The Council Tax Band for your home
   1. (from Band A, the lowest, to Band H, the highest),
2. How much your local council tax is for that band
3. Whether you are eligible for a discount, reduction or exemption

Properties are placed into bands by the Scottish Assessors Association. The valuation bands are based on the value of your property at a certain point in time. For example, in Scotland, these are based on property values as of 1 April 1991.

How do I calculate how much Council Tax I have to pay?

The Home Report should tell you what the Council Tax Band the property is in. If you want to figure out the council tax band for a property and you don’t have the Home Report, You can use the Scottish Assessors Association postcode search tool

Once you know the band the property is in, you can then look at the local council’s website and see what the council tax is for a property in that band.

Can I get a Council Tax reduction?

There is no specific council tax reduction for first time buyers. However, you may be able to get a council tax exemption, reduction or discount for a number of other reasons, such as being a full-time student, a single occupant or if you have a disability. It’s important to note that even if you’re exempt from council tax or are entitled to a council tax reduction, you’re still usually required to pay water and sewerage charges.  For more information see the Citizens’s Advice page on council tax.

Key Takeaways 📚

• Council tax is a local tax levied on households to fund various local services such as education, road maintenance, and public safety.
• Council tax doesn’t cover the full cost of these services. Local authorities also receive funding from the Scottish and UK governments, as well as other sources like business rates.
• In Scotland, the Council Tax bill includes water and sewerage charges, meaning residents do not have to pay a separate water bill.
• Eligibility for council tax reduction or exemption may exist for full-time students, single occupants, or individuals with a disability, but first-time buyers generally do not receive specific council tax reductions.