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  Calculating Council Tax

13 February 2015

The amount of council tax you pay depends on the value of your property and where you live.

Every property has been allocated to a band based on its value in April 1991. If your property was built after this date, it will have been given the national value it would have had in 1991. The band of the property is shown on your bill. If you have a query about the valuation band of your property, you need to contact the Valuation Office Agency.

The exact amount of your bill depends on the band your property has been allocated to and the different charges made by:

 

  • Essex County Council
  • Your District or Borough Council
  • Essex Police Authority
  • Essex Fire Authority

You may also receive a separately identifiable charge for your parish or town council.

 

The amounts of the Essex County Council element of your bill for 2015/16 are:

 

Band
Band
Amount (£'s)
A
Up to £40,000
724.50
B
£40,001 to £52,000
845.25
C
£52,001 to £68,000
966.00
D
£68,001 to £88,000
1,086.75
E
£88,001 to £120,000
1,328.25
F
£120,001 to £160,000
1,569.75
G
£160,001 to £320,000
1,811.25
H
More than £320,000
2,173.50

 

 

Your bill will be issued by your local district or borough council. It will show a full breakdown of your council tax charge and show how it is split between the constituent authorities. The District and Borough Council Tax Expenditure page contains more information about the amount charged by your District or Borough council. 

 

How The Valuation Band Amount is Calculated 

The first step in arriving at a charge per property is to calculate a tax base for every one of the twelve districts and boroughs within the Essex County Council area. This is calculated by the district and borough councils themselves and is achieved by multiplying the estimated number of properties within each band at the end of the financial year by the 'Band D Ratio' and adding the results together. This produces an equated tax base, i.e. as if all properties were in band D. The following table sets out a simple example of how a tax base for a District or Borough council would be calculated:

 

Table 2

 

 Band
Number of properties
Ratio to band D
Number of properties x band D ratio
A
90
6/9
60
B
90
7/9
70
C
90
8/9
80
D
90
9/9
90
E
90
11/9
110
F
90
13/9
130
G
90
15/9
150
H
90
18/9
180
Taxbase
870

 

The resultant band “D” equivalent tax bases for each District or Borough are then amalgamated to produce a single figure for Essex County Council:

 

Table 3
District / borough council
2014/15 taxbase
Basildon
57,381
Braintree
49,742
Brentwood
31,156
Castle Point
29,314
Chelmsford
62,382
Colchester
59,547
Epping Forest
51,196
Harlow
24,286
Maldon
23,042
Rochford
30,226
Tendring
44,290
Uttlesford
33,540
Total
496,101
 
 

For 2015/16, our taxbase is 496,101.

 

The next step in the process is for us to calculate how much we need to raise from council tax. This will depend on how much we plan to spend on providing services to the people of Essex and how much of this will be supported by government grant and national business rates.

 

Of the total gross spend of £1.777 billion that we budgeted to spend in 2015/16, we need to raise £539.138 million from council tax. This figure was then divided by the tax base of 496,101 to give a band D council tax for the whole area of £1,086.75.

Finally, this was multiplied by the Band D Ratio for each tax band to arrive at the Essex County Council charge for each property within the band. Please refer back to Table 1 for the 2015/16 charges for each band. 

2015/16 Council tax freeze

Essex County Council has frozen it’s share of the council tax for the fourth year running in 2015/16. It will receive £5.950 million of grant from central government, the equivalent of a 1% increase in the council tax, to offset the impact of the freeze.