ALL Scottish land should be put on a valuation roll as part of wider land reforms across the country, ministers have been told.
The recommendation is one of many put forward on Tuesday by the Scottish Land Commission (SLC) as part of a report on taxation and land reform.
Other suggestions include a cadastral map approach to allow the integration of information on land ownership, use and value. The SLC said such a scheme has already been “widely adopted across Europe”.
“This would be a vital first step in strengthening the role of land in Scotland’s tax base,” it added.
The cadastral map would help the Scottish Government to widen the scope of its future policy options by changing the “underlying tax administration system”.
READ MORE: Michael Fry: Land reform debate must create consensus instead of conflict
The SLC also suggests working on a UK basis to use reliefs and exemptions to work towards diversification of ownership of land, and bringing in new facets to the Non-Domestic Rates (NDRs) administered by councils.
Such new powers could include measures to allow councils to collect NDRs on newly derelict properties, or impose additional rates for new builds in order to support economic recovery in town centres and discourage buildings being allowed to fall into disrepair.
The report focuses on aspects that are directly relevant to the devolved powers of the Scottish Parliament, with the SLC noting that “many of the primary taxation levers relevant to land remain reserved to Westminster”.
The commission said that while 50% of the UK’s wealth is tied up in land and property, it only forms around 10% of the total tax base.
In Scotland, just 12% of all public sector revenue across reserved and devolved taxes are raised through taxes fully or partially levied on land and property.
The commission also recommended that “particular attention should be given to how taxation can secure a productive balance of public and private benefit from future carbon values”.
Hamish Trench, the SLC’s chief executive, said: “Land is our most valuable asset and Scotland has scope to tax land in ways that better support the Scottish Government’s policy priorities, but this needs to be considered in a careful way that acknowledges the complexity and devolved powers.
“This report sets out steps that can be taken to steadily increase the role that land value plays in taxation, as well as specific reform opportunities to tackle priorities including derelict land regeneration and a just transition.
“Tax is a potentially significant influence in delivering Scotland’s land policy objectives and we recommend an ongoing programme of reforms. Discussing changes to taxation often attracts passionate debate and strong views, our international research has shown how important direct public engagement is in discussion and consideration of the options for changes in land taxation.
“That is why we also advise that a national conversation needs to happen to help build consensus on the options for taxing land and making the most of Scotland’s land.”
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