Chapter 3 – Use of Proceeds of Levy by Principal Councils
Section 43 – Principal council account for proceeds of the levy
118.This section requires a principal council that has introduced the visitor levy to maintain a separate account for the proceeds of that visitor levy. The section also provides a definition of the “proceeds of the levy”. The proceeds of the levy are the net revenues a principal council receives after the costs of collection and disbursements are deducted (see section 24A of the TCMA 2016, as inserted by Part 2 of Schedule 2 to the Act).
Section 44 – Use of proceeds of the levy for destination management and improvement
119.This section requires a principal council to use the proceeds of the levy for the purposes of destination management and improvement in its area.
120.Subsection (2) provides a non-exhaustive list of destination management and improvement purposes including mitigating the impact of visitors, promoting the Welsh language, supporting the sustainable economic growth of tourism and travel, and providing and improving infrastructure, facilities and services for visitors (even if they are not exclusively used by visitors).
Section 45 – Report on use of proceeds of the levy
121.This section places a duty on a principal council to publish a report on the use of the proceeds of the levy for each financial year the council received proceeds of the levy. The report must include information about the amount of visitor levy received by the council in the financial year in question. The report must also set out how the proceeds have been or will be used for the purposes of destination management and improvement. Prior to publication, a principal council must send a draft report to members of the levy partnership forum established by the council (see section 46) and consult them on that draft.
122.The council must publish the report on their webpages (see section 66 (3)(a)(i)) as soon as practicable after 30 June in the financial year following the financial year to which the report relates, and no later than the end of the financial year following the financial year to which the report relates.
123.The Welsh Ministers may by regulations amend this section to set out requirements for the content of the reports, and to change the number of reports that must be published for a financial year, the frequency of publication and the date by which they must be published. Regulations made under this power are subject to the affirmative procedure in the Senedd.
Section 46 – Levy partnership forums
124.This section states that if a principal council has introduced the visitor levy in its area then it must establish a forum to discuss visitor levy-related issues with a view to providing a council with information and advice on certain matters.
125.The section details the matters the forum is to provide information and advice on as well as requiring a principal council to have regard to it.
126.The section also details the steps that must be taken by a principal council to facilitate the forum and makes provision regarding its membership.
