A major review has called for private schools, universities and council leisure facilities to be liable for Scottish business rates.
The panel, led by former RBS Scotland chairman Ken Barclay, has made 30 recommendations aimed at boosting growth, cutting administration and increasing fairness in the system.
Finance Secretary Derek Mackay welcomed the report, which was also broadly supported by north-east sectors which have been badly hit by rates rises.
However, opposition parties said it fell short of expectations.
Review group chairman Ken Barclay has been working for the last year on how to improve the rates burden, which left north-east businesses faced with the risk of going under and new buildings being demolished.
Now, Mr Barclay has recommended the system be made fairer and set out how he thinks nurseries, new builds and new businesses should be given temporary tax relief.
He said: “Many wished to remove barriers to investment and our business growth accelerator would do just that. By removing the burden of rates for 13 months for anyone who improves their property, we hope to stimulate growth and bring forward investment that may have otherwise been marginal.
“New build property will also benefit from a tax break of one year, creating some breathing space for both developers and occupiers and providing a better environment for new ventures to get off the ground.
“More frequent revaluations will help reduce shocks to the system and we also believe that the large business supplement should be reduced.
“A workforce must be inclusive and diverse: childcare provision is crucial to that. So we recommend that nurseries no longer pay rates.”
Mr Barclay also wants to see reduced bureaucracy and increased transparency.
The recommendations have been welcomed by Finance Secretary Derek Mackay, who pledged swift implementation.
He said: “This report offers recommendations for reform of the system to make it work better for ratepayers across Scotland while ensuring the contribution they make to important local services is maintained.
“Having now received the Barclay Review, the Scottish Government will respond swiftly to its recommendations.”
Aberdeen and Grampian Chamber of Commerce research and policy director James Bream said he was particularly pleased to see more frequent valuations planned from 2022, as well as support for nurseries and new businesses.
He said: “Reducing the valuation period from five years to three from 2022 will make the system more responsive to economic change.
“The recommendations also provide a small incentive to build, by proposing a 12-month period without rates for owner or occupier and we are pleased to see the proposed reduction of the large building supplement to keep it in line with other parts of the UK.
“We also welcome the suggestion of introducing relief for childcare properties as this will have a direct and beneficial impact on the north-east workforce.”
But Mr Bream said rates relief must not be allowed to slip in the gap between the report’s publication and revaluations in 2022.
He said: “While much of this report is positive, the recommendations need to be implemented – actions speak louder than a report.
“A major issue is north-east businesses are going to continue to be disproportionately affected by the 2017 revaluations until 2022 and the report was unsurprisingly quiet on what would be done to provide support in the meantime.”
The Federation of Small Businesses (FSB) Highlands & Islands development manager David Richardson welcomed the recommendation for a one-year lag in charges for new buildings.
He said: “Given the recent upsurge in visitor numbers on Skye, around the North Coast 500 and elsewhere in the Highlands & Islands, tourism entrepreneurs will be delighted to hear that they could pay no additional rates for the first 12 months after an extension to existing premises is finished or a new building opens.
“This will give them time to accumulate a small financial pot to cushion the blow of their first revised rates bill and could encourage more businesses to expand or start up.”
Property consultancy CBRE Scotland’s head of rating Brian Rogan also pushed for swift action from the government and efficiency in the appeals process.
Meanwhile Aberdeen City Council leader Jenny Laing said north-east businesses would be disappointed with the review, and called on the government to help mitigate the pressures they face.
Ms Laing said: “Aberdeen businesses were hoping that the Barclay review would offer a solution to the disproportionate increase in business rates they experienced this year. Unfortunately, the Barclay Review has rejected calls to reduce the overall burden of business rates, therefore the responsibility falls on Scottish Government to provide a sustainable solution to mitigate against the increase in business rates they will experience next year.”