Treasury Minister Dr Alex Allinson has defended the impact assessment for the proposed Valuation Amendment Bill after questions over its potential effect on local authority revenue.
The bill proposes changes to how quarry rates are calculated, including a potential discount or cap on their rateable value.
Dr Allinson told Tynwald that initial “high level estimates” for this proposal were prepared using five-year income data and informed the public consultation.
However, MHK Jason Moorhouse challenged the assessment’s robustness, stating it was “potentially fundamentally flawed” for focusing on the lowest income year in the five-year period.
Feedback
Dr Allinson said: “We’ve taken on board the feedback and provided a much more detailed impact assessment based on subsequent years.”
He acknowledged the current system, based on mineral royalties, causes “significant variations year on year, which makes it difficult for local authorities to balance their budget accordingly”.
Mr Moorhouse pressed the minister on the real-world impact for parishes and their ratepayers, to which Dr Allinson reiterated that setting specific rates is a matter for the local authorities themselves.