Reform of the island’s rating system is ‘parked’ until the new administration.
Member for Treasury Bill Henderson MLC gave an update on rates reform to Tynwald this morning.
He told the court: ‘While progress has been made it’s not quite what it could have been in terms of reform in this important area. It’s now a matter for the new administration about how and what pace the reform of the rating system is taken forward.
‘It is parked at the minute but can take off very quickly. It will be on the stocks as a priority issue for the next administration.’
Mr Henderson said a public consultation and self-assessment exercise had given validity to the Treasury’s proposed model of a rating system based on current capital values rather than rental values dating back to 1969, as it is at the moment. ‘The overall concept is considered valid,’ he told members.
He said there had been 8,500 responses to a question included with the interim census asking households to give a figure for the value of their home. That response rate works out at 22 per cent of residential properties.
Mr Henderson said further analysis of the results of the exercise was needed but it showed there will be winners and losers as a result of the reforms – but that the change would not be more or less than 10 per cent.
He said Treasury and the Department of Infrastructure are giving further consideration to introducing a rate rebate scheme to help those unable to pay.
This had a degree of support in the public consultation, Mr Henderson said, but it would require an element of means testing.
He said while the Bill remains in the legislative programme there was no possibility of including it in the priority list in the life of this administration.