Plan to double council tax on second homes laid before parliament
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People who own a second home could be charged up to double the full rate of council tax under a new proposal
Councils will be allowed to double council tax on second homes under plans that have been laid before the Scottish Parliament.
The government's draft regulations, which are subject to approval by MSPs, are part of a joint plan with Cosla to help increase available housing.
The move would bring tax rules on second homes into line with long-term empty homes from 1 April 2024.
Second homes are currently subject to a default 50% discount on council tax.
However, local authorities have the power to vary the charge and the majority charge second home-owners the full rate of council tax.
That could now double next year after a consultation in which 55% of respondents backed the proposal.
In the 2024-25 financial year, the premium will be based on rates from 2023-24.
Public Finance Minister Tom Arthur said: "We know second homes can sometimes benefit local communities, but they can also restrict the availability of housing and increase costs for people who want to rent or buy."
He added it would "enable councils to seek a fair contribution towards local services from second-home owners".
The plan is designed to increase the amount of available housing
Councillor Katie Hagmann, Cosla resources spokesperson, confirmed the local authority body would welcome the change.
She said enabling "politicians who are closest to their communities" to lead decision making was "well aligned" with the Verity House Agreement, external, the partnership deal signed with Holyrood ministers.
The latest figures show that as at the end of September 2022 there were 24,287 second homes in Scotland.
In January 2023, there were 42,865 long-term empty homes.
Council tax freeze
Last month, First Minister Humza Yousaf announced a council tax freeze that would be frozen at current levels when local authorities set their budgets for 2024-25.
He said it would "benefit every council tax-payer in Scotland" and would be fully funded by the Scottish government.
Ministers had previously proposed increasing rates by as much as 22.5% for homes in higher bands.
Cosla complained the announcement had been made without any agreement from councils.
- Published24 October 2023