A new Dundee community centre is set to be hit with a shock £300,000 annual tax bill.
The charge facing the new Menzieshill Community Centre was revealed last night after a £9 million tender was waved through by councillors at the council’s city development committee meeting.
The centre, which will cost £13.2 million in total, will be subject to the eye-watering bill after the Scottish Government introduced a new policy on business rates affecting newly-built facilities run by “arm’s-length external organisations” (ALEOs).
The policy previously sparked controversy after it was revealed Dundee’s new £32 million Regional Performance Centre for Sport (RPCS) could be hit with a £750,000 yearly tax bill.
However, following discussions with the council, the Scottish Government announced it would be exempt from the charge, due to “exceptional circumstances”.
Labour councillor for Lochee Michael Marra, said the Menzieshill finances showed Dundee would still feel the impact of the controversial tax policy.
He said: “These long-promised facilities will now be burdened by an eye-watering tax of £300,000 a year.
“That means the people of Menzieshill will have the most expensive facility in the region.
“That will undoubtedly put pressure on the costs of staffing for the lifetime of the facility, or for as long as this ludicrous Scottish Government policy survives.”
Liberal Democrat councillor Ballie Fraser Macpherson said Dundee would soon be just one of many council areas dealing with additional costs due to the policy.
He suggested all projects under current ALEOs such as Leisure & Culture Dundee (which will run the Menzieshill Community Centre), should be exempt from the new tax bill.
The news comes after residents of Mill O’ Mains were told by the council that there was no money to rebuild their fire-ravaged community pavilion.
The local authority was asked to pay around £1 million before insurers would meet the rest of the replacement costs – money it says it does not have.
Councillor Marra added: “It is my strong belief that community facilities in Mill o’Mains are the first casualty of this new tax.
“The decision has clearly been made not to replace the facility which was tragically lost to a fire.
“This tax means that any replacement facility would be wildly expensive for the council.
“The Mill o’Mains community has been denied a replacement by the Scottish Government tax.
“Dundee is first to feel the impact.”
