It is paid monthly. Local authorities spend the funds received on the maintenance of the police, public institutions (libraries, post office, etc.), street cleaning.
The specific amount depends on a number of factors: the location of the property (district, region), the number of residents. Each property is assigned a class – from A to H, depending on the price. The increasing coefficient is directly proportional to the class of housing.
The amount can vary from $ 700 to $ 5.5 thousand per year and vary significantly, even if the houses are located across the street. Here are some features of calculating the tax.
If only one person lives in the apartment, the rate can be reduced by 25%.
In the case of rent, the tax is paid by the tenant, that is, the person who actually lives in the apartment.
The municipal tax can be reduced if certain social conditions are met (disability benefits, temporary or total incapacity, low annual income – up to $ 16.7 thousand per year). A lower rate is also provided for those who work remotely, as such people use municipal infrastructure less often.
The tax amount can be revised if the cost or condition of the housing has changed.
You need to file a declaration once a year before January 31 of the year following the reporting year. Please note that the reporting year ends on April 5. For example, for activity in the period from April 6, 2019 to April 5, 2020, you must file a declaration and pay taxes before January 31, 2021.
Features. The UK ranks second in the world (after the United States) in the ranking of countries that are most radical in terms of timeliness and transparency of tax payments. Therefore, even for an individual, undeclared income may result in not only monetary but also criminal punishment.
A penalty is charged for late payment (about $15 per day of delay). Even if you provide incorrect information to the tax office (calculations, declarations, certificates, etc.) through negligence, the fine will be $350. Forgery of documents is punishable by imprisonment for up to 14 years.