ANNEX 4

COUNCIL TAX AND PRECEPTS

Council Tax Data

In order to set its Council Tax, the County Council needs the following information:

(a)	the County Council’s budget requirement for 2004/05. This is the County Council’s net expenditure to be financed by the Council Tax, NNDR (Business Rates) and Revenue Support Grant (RSG). This is determined by the Council when it formally sets the budget;

(b)	the amount to be received from Business Rates and Revenue Support Grant. This is determined by Government within the Local Government Finance Settlement. We received provisional figures on 19 November 2003, with an update on 11 December 2003. We received the final figures on 29 January 2004.

(c)	any surpluses/shortfalls on the Council Tax collection funds for earlier years and the estimated position for the current year. Each District Council must make this calculation and notify the County Council of its share before 31 January 2004. The County Council must take these adjustments into account in setting its precept and the Council Tax figures for 2004/05. These adjustments only affect the Council Tax, not the County Council’s budget requirement;

(d)	the Council Tax base, expressed in terms of Band D equivalent properties. Each District Council must formally notify the County Council of the tax base for its area before 31 January 2004. For 2004/05 the tax base is determined by adjusting the tax base for RSG purposes for any increase arising from reductions in the discounts for second homes and empty properties and then applying a factor for estimated losses on collection. For future years the tax base for RSG purposes will take into account any increase arising from reductions in the discount for empty properties.

Based on the latest information available and assuming a proposed budget of £547.760m as shown in the Executive’s proposals the calculation of the Band D Council Tax for 2004/05 is as follows:

Council Tax Calculation 2004/05	£000

County Council Budget Requirement	547,760
Less Revenue Support Grant	-174,483
         National Non-Domestic Rates	-159,029

Less Collection Fund Adjustments (Estimate)	-1,654

Council Tax Income Required	212,594	(P)

RSG Tax Base (Band D Equivalent Properties)	231,972

Council Tax Base (Assuming losses on collection)	229,879	(B)

Band D Council Tax	£924.81	(P/B)

Each £1 million variation in budget will change the Band D Council Tax by about £4.35 or 0.5%.

The calculation of the Council Tax for the other bands is shown below in Table 1. Table 2 analyses the tax base over each District Council area and allocates the County Council precept to each area relative to their tax base. 

Table 1

Council Tax by Property Band for Oxfordshire County Council

Assuming a Band D Council Tax of £924.81, the Council Tax for other bands is as follows:
 
Property
Band	Property
Values	Band D
Proportion	2004/05
£ p	
A	Up to £40,000	6/9	616.54	
B	Over £40,000 and up to £52,000	7/9	719.30	
C	Over £52,000 and up to £68,000	8/9	822.05	
D	Over £68,000 and up to £88,000	9/9	924.81	
E	Over £88,000 and up to £120,000	11/9	1130.32	
F	Over £120,000 and up to £160,000	13/9	1335.84	
G	Over £160,000 and up to £320,000	15/9	1541.35	
H	Over £320,000	18/9	1849.62	

	N.B. The appropriate District/Parish and Police Council Tax will need to be added to give the total Council Tax charge.

Table 2

Allocation of Precept to Districts

The County Council precept (£212.594m) is the sum of the Council Tax income required to fund the Council’s budget.

District Council	RSG
Tax Base	Council Tax Base after adjusting for reduction in discounts and losses on collection	
Assumed Precept Due
£000	
Cherwell	48,143	47,260.00	43,706	
Oxford City	43,707	42,417.00	39,228	
South Oxfordshire	54,773	54,257.60	50,178	
Vale of White Horse	46,681	47,010.00	43,475	
West Oxfordshire	38,668	38,934.22	36,007	
	231,972	229,878.82	212,594	

Tables 1 and 2 have been redrawn and are presented to Council for formal approval. Formal approval is required under the Council Tax legislation for:

•	The County Council’s precept, allocated to District Councils pro rata to their share of the Council Tax base for the County Council;
•	The Council Tax figures for the County Council for a Band D equivalent property and a calculation of the equivalent Council Tax figure for all other Bands.

The information must be given to District Councils by 1 March 2004.