What is the visitor levy?
The Scottish Government has proposed a new law which would allow local authorities to introduce an additional charge when someone pays for overnight accommodation.
Accommodation providers will be responsible for collecting the levy from visitors and paying it to their local authority on a regular basis.
The Scottish Parliament’s Local Government, Housing and Planning Committee are looking at the details of the proposals and have launched a Call for Views to help them think about ways that could improve the proposed law.
The proposed law currently includes:
- Giving Scottish local authorities the power to introduce a new fee called the ‘Visitor Levy’ (VL) in all or part of their area, should they choose to do so.
- Applying the levy to all types of visitors, including for business and leisure purposes.
- Also applying the levy to people staying overnight within their own local authority areas, and visitors from other parts of Scotland, the UK and overseas.
- The Bill covers most types of visitor accommodation – expect for cruise ships, and mobile campervans and wild campers who do not pay for a pitch at a caravan or campsite. However, the levy would be chargeable on the overnight parking of a campervan at a campsite, or the overnight mooring of a boat at a boat mooring; in those examples, the “accommodation” provided by the liable person is the area of the campsite or boat mooring allocated to the visitor for the purpose of the visitor’s overnight stay in the campervan or boat.
- Granting the power for two or more local authorities to act jointly to make a VL scheme.
What does this all mean for accomodation providers?
Accommodation providers must pay the levy quarterly to the local authority and submit at the same time a return that details the amount the provider calculates they owe to the local authority. If a person provides overnight accommodation at more than one set of premises, then they must include sperate assessments for each set of premises.
A duty is placed on accommodation providers to keep records of the amount of levy payable, including any associated records of payments, receipts, and financial arrangements. These records must be preserved for five years, with local authorities able to specify other records that must be kept and preserved.
If the accommodation provider fails to provide a return, this can lead to enforcement of the levy and penalties for non-compliance. This includes a penalty if someone doesn’t pay the VL within 14 days after being reminded by the local authority. The longer this goes unpaid, the higher the penalty.
There are also penalties for giving false information on purpose, for not correcting an error after realising a mistake has been made or hiding or destroying a document requested. Again. The penalty amount can increase over time. Penalty fees outlined in the Bill range from £100 to £3,000.
Call for views
Here are some of the key questions we are interested in hearing your views on:
- What are your views on whether local authorities should have a power to place a levy (a type of additional charge or fee) on top of the price charged for overnight accommodation in their area?
- Given that the Bill is likely to result in different councils introducing a visitor levy in different ways or not doing so at all, what impact do you think the Bill will have in your area and across different parts of Scotland? For example, this could include any impact (positive or negative) on local authority finances, local accountability and flexibility, businesses, or on numbers of overnight visitors.
- The Bill would allow councils to apply local exemptions and rebates to some types of guests if they choose to. It also allows the Scottish Government to set exemptions and rebates on a national basis where it considers it appropriate. What are your views on the Bill’s proposals in relation to exemptions and rebates?
- The Bill requires that net proceeds of the scheme should only be used to “achieve the scheme’s objectives” and for “developing, supporting, and sustaining facilities and services which are substantially for or used by persons visiting the area of the local authority for leisure purposes.” Do you agree with how the Bill proposes net proceeds should be used and if not, how do you think net proceeds should be used?
- What are your views on the Bill’s requirements for accommodation providers to identify the chargeable part of their overnight rates, keep records, make returns, and make payments to relevant local authorities? Are there any other arrangements that you think would be better, for example, by reducing any “administrative burden” for accommodation providers?
FSB Scotland
FSB Scotland is keen to hear your views on these proposals and would like to invite you to our roundtable event held 10-11am September 5, 2023. You can do so here.
FSB Scotland will be submitting a response on behalf of members, but individual responses to the consultation is encouraged.
Please contact your local Development Manager or FSB Scotland’s Deputy Head of Policy, Rachel Cook, if you’d like to be involved with FSB’s work in this important area.
Highlands & Islands Development Manager: [email protected]
North East Scotland Development Manager: [email protected]
West of Scotland Development Manager: [email protected]
East of Scotland Development Manager: [email protected]