Edinburgh Council may ask The Scottish Government to explore “more progressive” regimes for council tax, if councillors approve a draft response to a government consultation.
Officers have drafted a response to the consultation which asked all Scottish councils for suggested changes to the council tax system.
The response expresses support for a broader number of council tax bands, with steeper rates for the most highly valued properties.
Additionally, there is a demand for a revaluation of capital properties, with future valuations taking place on a five-year cycle.
Council tax rates are calculated according to financial value, with higher value home owners subject to higher tax, as well as water and sewer rates – though those two are not covered in the consultation.
The valuations currently in use have not changed since 1991, and a report before councillors states that values in different areas have all increased since then, but at different rates.
A revaluation would mean the council tax that each property pays would change – with some increasing, and some decreasing.
Officers say in the report that, if a revaluation is conducted under the current council tax system, some two-thirds of homes could go up a band. Only 24% in the rest of Scotland would be similarly affected.
Additionally, only 5% of homes would drop down a band, compared to 26% across the country, and tax for more homes might increase depending on the new tax model.
Council officers say that this would continue an issue with the current model, which means Edinburgh relies on council tax for income more than any other council in Scotland.
According to data in the report, Edinburgh gets almost 25% of its funding from council tax, while Glasgow only nets 15%.
Councillors will consider the matter at the Finance Committee meeting on Thursday 15 January. All council papers can be found here as well as the link to watch the meeting online.
By Joseph Sullivan Local Democracy Reporter
