Treasury has published a report summarising responses to its consultation on the Reform of Domestic Rates.
The consultation created considerable public interest resulting in one of the largest consultation responses received on any subject by the Isle of Man Government.
Treasury received a total of 1,484 individual responses to the consultation 84% of which were made on-line. Responses were also received from 17 of the 39 rating authorities including 15 of the 24 local authorities.
The majority supported revaluation of domestic properties and moving the basis of domestic property taxation from rental value to capital value.
Respondents also agreed that each domestic property should be placed within one of nine property tax bands, though views were expressed that the range and value of the proposed bands should be amended.
Support for a change in the calculation of property taxes did not extend to the proposed valuation process which involved an element of self-assessment. When considering how property tax should be collected the largest number of respondents (but not local authorities) were in favour of an all-Island basis with income being raised equally across all properties in the same tax band and allocated to local authorities according to their needs.
Individual views were also expressed supporting the need for a rate rebate scheme and for discounts in certain circumstances, however due to the additional cost of administering such a system this received little support from rating authorities.
Respondents also showed significant support for the reform of commercial and agricultural rating together with domestic rating to ensure that any revaluation was fair to all rate-payers.
Treasury will consider all the views expressed by respondents before determining how best to proceed to deliver reform of domestic rates.
A more detailed explanation of the consultation findings is set out in the report which can be viewed on the Isle of Man Government's Website: http://www.gov.im/ConsultationDetail.gov?id=493
Paper copies are also available from the Rates and Valuation Office at Illiam Dhone House or by telephone on +44 1624 686266.
