
Scottish councils could get more choice in how they design and apply visitor levies on accommodation including short-term lets.
While local authorities currently have the ability to apply a charge on overnight stays based on a percentage of accommodation costs, the Visitor Levy (Amendment) (Scotland) Bill proposes giving them more powers to set the levy as a fixed amount per person per night or per night basis instead.
The legislation will also allow councils to set a range of fixed amounts for different geographical locations, times of year or types of accommodation. This aims to let councils tailor schemes to local markets such as higher seasonal charges in high-pressure areas.
The amendment also spells out how the levy must be applied where bookings are made via online travel agents and platforms, and what information providers must give to councils to support collection and enforcement.
Propertymark says systems used by landlords and agents will need to cope with percentage-based charges, fixed per-night or per-person fees, and seasonal or area-based variations.
It warns: “Landlords, especially those new to the sector, will need clear explanations of when the levy applies, how it interacts with VAT and other local charges, and how it should be presented in advertising and on invoices to guests.”
Public Finance Minister Ivan McKee believes these new proposals will give councils even more flexibility and provide clarity to businesses. He adds: “We want to ensure visitor levies are an effective option for councils who choose to introduce them to boost investment in local economies and services.”
Although the Act came into force in September 2024, the levy is not yet live anywhere, with the first scheme expected to start in Edinburgh on 24th July. A 5% charge will apply to the accommodation-only cost of paid overnight stays within the city boundary and includes short-term lets.
Ministers hope the amended Bill will pass in the current parliamentary session.
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