Among the options presented in a report are taxing derelict and second homes, a tourist bed tax, an enhanced property transfer tax, and increasing the minimum rate of tax paid by residents depending on how long they spend in the island throughout the year.
Express took a look at each of the ideas…
The ‘stay or pay’ tax
Those who show the most ‘absenteeism’ from the community could face huge increases of between 500% and 2,000%.
The minimum rate of personal tax payable each year is £525, but those who spend less than 270 or 180 days in the island would be charged a of £2,625 and £5,250 respectively under that system.
Those unable to prove they have been present in the island for at least 90 days would be charged £10,500. The committee noted this could help stop tax evasion in other jurisdictions.
Exceptions may be made, however, for those off-island for medical reasons or if they are caring for a family member or friend based elsewhere.
Derelict building dues
“This is an emotive subject for some, especially where the owner of a derelict property finds themselves asset rich but cash poor and simply does not have funds available to do up the buildings,” the report said.
Pictured: Owners of derelict buildings could be charged a percentage of the property tax that would be payable if they were habitable.
“Derelict buildings could be registered on the Cadastre by the owner and charged a percentage of the property tax that would be payable if they were habitable.”
The ‘tourist tax’
Tourists are also identified as a revenue stream, as no tax is contributed beyond a landing fee attached to tickets.
“Whilst visitors to Sark pay a landing tax when they set foot on Sark, those that come for a holiday on the island staying longer with hotels, self-catering, bed and breakfast or camping they pay no further tax,” the report said.
Pictured: Many locations around the world have a ‘tourist tax’ which are used to fund improvements to infrastructure, such as Barcelona which introduced the tax back in 2012.
“They enjoy the beauty of the island and its infrastructure at no further cost. Perhaps a Tourism Tax per person per night should be imposed. This is a tax that is imposed by most governments in Europe and around the world.”
Rates of £2 a night for hotels, £1 a night for self-catering or B&B, and 50p for camping are suggested.
Seasonal labour levy
A seasonal workers tax is suggested too.
“A weekly Seasonal Workers Tax of £10.10, being pro rata to Sark’s 2024 Personal Tax rate, to be submitted to the Sark exchequer by accommodation providers in respect of their seasonal workforce,” a report outlining the various options said.
Disposal dues
Simultaneously, increases in other fees for public services will also be considered at the meeting, which have been raised for six years.
Rubbish and recycling rates would rise by £5.20 per quarter to £27.40, while sewage collection would increase by £4.30 to £22.67 per load.
The Douzaine has also proposed at 23.4% increase to commercial disposal charges, noting that the scheme is losing £20,000 of public money each year and that a “future Chief Pleas” will need to carry out a “comprehensive review” of the service.
What next?
The committee says it has ruled out any revenue raising measures which would cost more to administrate than cash they would bring in.
The report said the Tax Committee behind the initial proposals “offers no view as to the merits, the perceived fairness or otherwise of our deliberations and findings to date”, adding: “We believe we have discharged our duties without fear or favour and will continue to do so.
Pictured: Sark agreed to review its tax system in 2021, the first time in two decades.
“It will be for The Policy and Finance Committee to consider our findings and lay before Chief Pleas one or several of our proposals.
“It will be then, and only then, with the benefit of evidence-based representation from our lead committee, that debate as to the merits, the perceived fairness or otherwise of each potential revenue raising proposal will be either approved or rejected on the floor of the house.”
All the above matters will be considered by Chief Pleas at a meeting on 17 January, with the new charges coming into effect from February 1 if approved.