Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I thank the Deputies for their questions. I am struck by a contradiction I feel is there. On the one hand, both Sinn Féin and People Before Profit are against the local property tax, LPT, because they believe the level of the LPT is unaffordable for many people. Yet, when I bring forward a measure that triples a tax they feel is currently unaffordable, then it is not high enough. If their starting point is that the LPT is already a lot for people to pay and then we multiply the local property tax to make that the additional top charge for a home being vacant, then surely that is a credible change to make. I find it to be a contradiction where, on the one hand, they say the property tax is unaffordable and should be abolished, and then they say a measure that triples the local property tax is too low.

I accept it has taken time for me and my officials to design this tax and to be confident it can be implemented, but I do not want to bring in a tax that would go the way the derelict site levy has gone, with its non-implementation in different parts of our country. I want this to work. I want it to make a difference. I want there to be exemptions in place for vacancy reasons that we judge to be legitimate and acceptable. It did take some time to get that right and to bring this measure forward. We are in the grips of a terrible difficulty that is an emergency for families, for tenants, and for renters in relation to their housing needs. From an overall tax perspective, the measures we are now doing, such as the new zoned land tax combined with the vacant property tax, are really significant efforts by tax policy to play a role in changing the use of lands and homes.

The Deputies raised the issue as to whether this will have an effect. We are fortunate that, in having done the work through data collection and through the last local property tax return, we have some form of benchmark against which we can evaluate the impact of the performance of tax, which we will do. I have little doubt at all that when the tax is due to be paid, there will be some who complain and make the case they have legitimate reasons for the property being vacant, that this is not recognised by the exemptions in place, and that what we are asking them to pay is too much. I know this will be raised as an issue because it frequently is in the context of taxes that relate to property. I do not accept this is a case of business-as-you-go in relation to tax policy and the substantial difficulties we have with housing. Bringing forward this measure in the way we are, I believe it will make a difference. We will continually evaluate its performance to see if change is merited.

On the operation of the measure, it is correct to say that the payment in respect of the approaching chargeable period is 1 January 2024, but the first chargeable period for vacant home tax has already begun. It began on 1 November and will end on 31 October. This tax will be quickly rolled out once the Finance Bill is enacted. I have a different view from the members of the committee regarding the level of the tax. I accept that more work needs to be done on the dereliction aspect. Because local property tax, which is the basis for the introduction of vacant homes tax, is done on the basis of self-assessment, it is difficult to see how dereliction can be handled by anybody but the local authorities. The Minister, Deputy O'Brien, is doing work on this at the moment to understand how we can do more in the conversion of derelict properties into habitable homes.

Deputy Doherty asked what happens if a property is vacant because it is for sale. An exemption from the vacant homes tax will apply if a property is actively marketed for sale in a chargeable period and the following criteria will need to be met: the price for the property does not exceed the market value of the property, and there are no conditions attached to the sale designed to impede or disrupt the agreement of the sale. Those criteria are put in place to try to minimise attempted sale activity being used as a reason for this tax not to be levied to a vacant home.