Why do tenants have to pay council tax?

[Goodnightseamer]

It's a domestic property tax. But tenants don't own any property, so they're paying tax on something they don't own. They didn't use to have to pay rates, but they have to pay council tax. Why? NB council tax is not a tax for use of services so that argument doesn't wash. It is a tax where liability is created by the existence of a domestic property. Which tenants clearly do not own.

[BlouseAndSkirt]

“Can people stop bleating about bins please?”

Very rude. You asked a question, you clearly want people to agree with you, you can’t dictate what examples people use to answer you, and in any case you yourself keep repeating the same assertion.

[Elodie2019]

OP. Look at your bill.
As others have said, it gives you a breakdown of what is spent and where.

[FizzyGreenWater]

You're beginning to sound a bit FreeNutter on the Land OP

[bigbluebus]

The way Council Tax is currently calculated is dependent on who is actually occupying the property so as it stands the Landlord would have to be privy to your personal circumstances in order to pay the Council Tax. This would mean that the Landlords CT liability would change depending on the status and number of occupants. Eg Single occupant 25% discount, Students - no CT liability, 2 parent family - full council tax. It would therefore be beneficial for Landlords to pick and choose who they rented to based on what it would cost them in Council tax. The system is more complicated than that - at one point there were 4 adults living in this house but we were paying the 25% single person discounted CT at band C rate on a Band D property!

[Elodie2019]

It's not hard to understand.

[TheMidasTouch]

@lazyarse123

"If the house was vacant but furnished the landlord would have to pay, if they were unfurnished no council tax is payable."
Not true. Councils can and do charge for empty properties too. I am currently paying 200% Council Tax on a small inherited property whilst refurbing it to an acceptable standard at which we can then sell it.
Councils have discretion as to what percentage they charge for these.

[SafetyAdvice0FeedWhenAgitated]

Local authorities are funded by four types of levied funds, of which council tax is the smallest tranche.

Maybe in cities where government hasn't cut 63% of funding to the council over the last 9 years....

[sunshinesupermum]

Godnishtseamer It is not a 'domestic property tax' at all! It pays for the services a tenant uses when living in a flat they rent. This covers only part of the cost the rest comes from government to the local council.

YABU if you thinks tenants shouldn't pay for what they use.

[FFSFFSFFS]

OP you are not being as clever as you think...You're being pretty thick tbh.

It's associated with property simply because that's the easiest mechanism of identifying who is living and benefiting from the services. It is not a tax ON the property. It is a tax on the person(s) LIVING in the property.

[Notcontent]

As someone else pointed out, it’s a bit of an odd hybrid tax, as it’s to pay for services but calculated by reference to occupation of a property. I personally think it’s a bit unfair. For example, I am a lone parent with one dc. I get a single person discount but the discount is not 50% so I think it’s unfair that I am in effect paying a lot more for services than all the couples who live in my street.

[minniemoll]

I was renting in 1989/90, when the community charge came in. Our rent went down as the landlord no longer had to pay rates out of it, and it was up to us to pay the CC. So of course tenants paid rates - just not directly to the council!

Do you really think that if landlords had to pay council tax, they wouldn't pass the cost straight on to the tenants? You must have a very rosy view of landlords....

[ChristmasFluff]

OP, you are wrong in your assertion that it is a property tax - just take a look at the Wikipedia page en.wikipedia.org/wiki/Council_Tax#The_nature_of_the_Council_Tax

The Valuation Tribunal Service has cleared up many previous doubts regarding the exact nature of Council Tax and states that:

“The tax is a mix of a property tax and a personal tax. Generally, where two or more persons reside in a dwelling the full tax is payable. If one person resides in the dwelling then 75% is payable. An empty dwelling attracts only a 50% charge unless the billing authority has made a determination otherwise."

People are taxed for residing in a dwelling, not for owning it and there are discounts for empty dwellings.

[Berthatydfil]

The tax when originally introduced was a mix of personal and property.
Hence the link to property values and also it’s based on 2 people living there - which is why you get the 25% single person discount (50% of 50%).
Also that’s why initially you would get 50% empty property relief.
The person living in the property benefits from the services provided so is generally the person liable to pay.

[mumwon]

small point if you are a council tenant you pay council tax so stop blaming LL & as stated by pp the tenant is using services - service that you as a tenant use & make your life better -the LL does not provide them. When you live in shared accommodation the rent is increased to pay for them & if the LL would include the figure within the rent. Consider this: with council tax which you pay as a tenant you can get a reduction if you live by yourself, you are a student & are on certain benefits. If your land lord charged used enough to pay for his council tax your rent would not be reduced. But you know that - don't you?

[gamerwidow]

As others have said it's not a properties tax, it's a services tax.
People on HB usually get council tax benefit too so they don't pay the full rate. My mum for example only pays about £30/month of her £90 council tax because she is living on a state pension.

They do need to redo the banding for council tax though imo because some people are paying over the odds and v.v.

[jay55]

Landlords have to pay it, if they have a HMO rented by the room. And students don't have to pay, but still use services. It is an inconsistent tax.

[gamerwidow]

small point if you are a council tenant you pay council tax so stop blaming LL
This is a good point, all renters private and state pay council tax at the same rate.

[TheMidasTouch]

@ TheyMostlyComeOutAtNightMostly

'Education and police come out of centrally provided funds not council tax Midas - see link above.'
Thanks. Every day is an education.
I was going by the leaflet the council send out with the bill which does state the percentages for each. Maybe it's a little ambiguous as to where they receive the money from.
I also note BBC's website states it includes local police services.

[Goodnightseamer]

Yeah council tenants are funding everyone. Rent money going to government, council tax going to government. Everyone else is subsidised by them

[lookatthebabypenguin]

Ok, so how would you like your contribution to funding services in your local community to be calculated and charged?

Are you saying you would prefer income tax to be increased and councils to be fully funded centrally instead?

[AJPTaylor]

See poll tax riots.

[otterturk]

Believe me, landlords are already milked to the point that owning a BTL property is barely worth it.

[mindproject]

I disagree with council tax entirely. It's a very, very unfair tax. I think the system is too complicated. We should all pay more income tax instead and do away with this.

[RunningNinja79]

Why is it such an issue who pays? I don't understand what the problem with tenants paying is

As said previously by a number of posters, surely the its fairer if the tenants pay. Then there is that reduction if required (lone people, students etc).

I quite like having street lights, bins emptied and roads maintained. I like knowing that if something were to happen the police/fire brigade are able to attend. I like it that a gritter comes down the roads in bad weather so I can still get to work and not lose my job. I am a tennant and believe me council tax is one bill I'm happy to pay. It helps pays for my children to be educated in their state schools too. Why should my landlord pay for these services used by me? Why shouldn't I make a contribution to these services? After all I use them so surely I should pay a tax for the privilege?

[TheMidasTouch]

*"People are taxed for residing in a dwelling, not for owning it and there are discounts for empty dwellings."
There are also, at individual councils' determination, enhanced council tax charges for empty dwellings. (e.g. I pay 200% of the charge while doing up an empty dwelling. Some councils charge, for example, 150%).