4 ms·
A yearly levy, based on a fair market valuation of the property (+ improvements), paid for by the landholder. To put it another way, a property tax would be pa
by falsedan 9y ago
A yearly levy, based on a fair market valuation of the property (+ improvements), paid for by the landholder.
To put it another way, a property tax would be paid by the freeholder, not the leaseholder. This wouldn't make much of a difference for renters (as the owner would simply pass the cost on), but for owners of leasehold property it would be a stunning boon (and for freeholders who have sold the lease a disaster).
- kobeya 9y agoThe fact that this county tax is paid by the leaseholder not the property owner is what was missing from the context. (And it boggles my mind why this is the case.)
- pjc50 9y agoEngland is run by landowners who are really hostile to the idea of property tax. The last big attempt at reforming the ancient "council rates" system in the 90s converted it to a per-person "Poll Tax". This was incredibly unpopular, widely boycotted, and resulted in riots. The system was dialled back to a system based on the value of the property in 1991, paid by the occupiers, with exemptions for students and empty properties, and a 25% discount for people living alone (mostly pensioners).
- DanBC 9y ago> with exemptions for [...] empty properties https://www.gov.uk/council-tax/second-homes-and-empty-properties https://www.gov.uk/council-tax/second-homes-and-empty-proper... Empty properties are not always exempted. It's up to the council. Sometimes they are, sometimes there's a discount, sometimes there's no discount, sometimes people have to pay extra for empty properties.
- caf 9y agoThe owner's ability to pass the cost on depends on the conditions of supply and demand in the market, as always.
- pjc50 9y agoApplying it to freeholders of very-long-lease property would be a fiasco for all those "99 year lease" properties that behave almost, but not quite, like freehold.