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Parish Tax review

22 September 2021

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Parish Tax review - Finance meeting 15th Oct 2021

Council Tax is a collection of taxes levied by County, District, Town & Parish, and Police & Crime Commissioner. The part of Council Tax set by each Town & Parish is known as precept.  Every year around November, Councils have to think about the level of precept (tax) for their own individual Town or Parish for the coming year. By the end of January of the following year they inform East Suffolk District Council of their precept decisions. East Suffolk then collects it along with the other taxes that make up Council Tax.

What is this thing called the Tax Base?

East Suffolk Council counts up all of the properties in each Town/Parish. Then it takes into account any discounts that are given, for example, 25% for single occupancy. The properties are then translated into band D equivalents using the ratios below:

Band A 6/9 Band E 11/9

Band B 7/9 Band F 13/9

Band C 8/9 Band G 15/9

Band D 9/9 (1) Band H 18/9

 Next, add on the estimated number of Band D equivalents properties that will be built in the tax year that we are talking about. Lastly, apply a “collection rate” (how many people will or will not pay their council tax). You now know how many Band D equivalent properties you have to use for the tax base.
 
So, if we look at East Suffolk District Council record of parish precept at say Wrentham for example. We can see that Wrentham requires it's residents to pay £17,657 for the things it chooses (village hall, benches, bins, bus shelter etc). Divide that up amongst 375 "equivalent" properties (ie the Band D tax base) to get the "equivalent" Council tax of £47.06 (payable by the Band D property for that year).
            
                      Expense £              Tax Base                    Equivalent Council Tax               Basic Amount £

Wrentham      17,657.00                375.17                            47.06                                  218.33

Southwold       117,962.68              1076.4                            109.59                                280.86

The "Basic amount" eg £218.33 for Wrentham is the £47.06 precept for a Band D equivalent + £171.27 Band D District Council charge.

 In April , eachTown/Parish will get paid half the money collected from residents. The other half is paid in September.