| The latest figures released by the council show that, in the 12 years since the tax was introduced, a gross total of £531m has been billed. As of the end of January, £17.05m, representing 3.2%, remained uncollected.
Of the uncollected council tax, some £6.345m, or just over 1%, has been written off. The council said this is done only as a last resort when, for instance, a debtor has died and there is insufficient money in the estate. Other examples include when a debtor has become insolvent or cannot be traced.
“In most of these cases the debtor’s details remain on file and the debt is automatically reinstated should the debtor move back onto the council tax roll and/or the circumstances change,” a council spokesman said.
The council insists it has rigorous and comprehensive procedures in place to pursue any debt owed to it.
Council tax instalments are due on or before the 1st of each month and payable over 10 months, April to January inclusive.
“If payment is not made on or before the 1st of the relevant month then the council tax account is in arrears and recovery procedures can and will commence,” the spokesman said.
More than 50,000 reminders have been issued for arrears in the current financial year.
If recipients don’t bring payments up to date they are included in the next stage, involving a court petition.
Once the petition has been signed it means the council
has a summary warrant allowing it to take action to recover the full outstanding balance of the debt.
The council tries to make arrangements with those in arrears to pay off the debt, but if that fails then the debtor is advised legal proceedings will be considered. These can include arresting earnings or issuing a statutory demand to commence sequestration.
Dundee has around 1000 council tax debtors subject to earnings arrestment and 5500 with repayment arrangements in place.
In setting its revenue budget each year, the council, in common with other local authorities, makes a provision for non-collection of council tax.
At present the council’s budget is based on collecting 96.5% of the council tax. As each 1% represents £12 of the council tax figure, it would mean a 100% collection rate would reduce the overall figure by £42.
However, it is recognised by all local authorities that it will not be possible to collect every penny due. |
