Section 5 – Calculation of levy
18.This section sets out how the levy will be calculated in respect of a chargeable transaction. Subsection (1) provides that the levy which is to be paid in respect of an overnight stay is arrived at by multiplying the percentage rate of the levy (set by a local authority under section 6) by the “accommodation portion” of the transaction. Subsections (2) and (3) define the “accommodation portion” of the transaction to mean the amount charged for the accommodation, not including any reasonable costs for facilities or services provided such as meals or drinks, entertainment or parking (unless the area used for parking is the “accommodation” provided by the liable person, for example in the case of a campervan parking at a campsite – see paragraph 16 above). The calculation of the levy can be expressed as a simple formula as follows:
Levy chargeable = Accommodation portion of transaction x % rate of levy.
19.Subsection (4) contains a regulation making power for Scottish Ministers to add to, remove or vary the facilities or services which are not to be treated as forming part of the accommodation portion of the chargeable transaction. Such regulations are subject to the negative procedure (subsection (5)).
