Lerwick Harbour: set for a positive future


simply existing. These taxes function in a way that is hostile to new business starts, and friendly to lazy and irresponsible landowners who are happy to let the property they refuse to maintain decrease in value, and take the value of neighbouring properties with it.


There’s an easy fix here. First off, there must be a complete rethink of Commercial or Non Domestic Rates. They need to be scrapped in favour of an American property tax model. Essentially, commercial


rates already function as property taxes. But instead of the landlord who draws a lease paying those taxes, the businesses pay it. No business, and no person, should be paying their landlord’s property taxes.


Te current tax codes actually discourage landowners from bringing in new commercial tenants. Tey also discourage new enterprises by taxing them for simply existing.


It’s totally appropriate to charge a business punitive rate if it is leasing a commercial property without actually operating business on that property. These rates should be punitive enough to force the business to break the lease and pay off the land owner, or open a business that will employ local people. If the lease is broken, the Landlord becomes responsible for paying a vacant property rate. This ought to be similar to the council taxes levied against empty residential property. Then it’s up to the landowner to find some company willing to lease the vacant commercial property.


But what if no one wants to invest in a business locally? What if the landowner just can’t find anyone


July 2015 33


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