Commentary on Provisions Part 2 – Key Concepts Section 6 – Rate for levy
20.This section requires a local authority seeking to introduce a VL scheme to set the percentage rate of the levy chargeable in respect of the purchase of overnight accommodation. Different rates can be set for different purposes or areas (subsection (2)(a)), meaning that a local authority could, for example, set different rates in relation to particular events, such as arts festivals or special conferences. However, different rates may not be set for different types of accommodation (subsection (2)(b)).
21.Subsection (3) gives the Scottish Ministers the power to specify in regulations the maximum percentage rate that a local authority may set under subsection (1). Different maximum percentage rates may be set for different purposes, but not for different areas (subsection (4)). Subsection (5) sets out the organisations and people who must be consulted before making regulations under subsection (3): local authorities, such persons as the Scottish Ministers consider to be representative of communities, businesses engaged in tourism and tourism organisations, and anyone else they consider appropriate. Regulations made under subsection (3) are subject to the affirmative procedure (subsection (6)).