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

Following a commitment given in budget 2015, a public consultation was conducted by my Department in that year on the issue of unused zoned and serviced land with a view to examining what taxation measures might be taken to penalise landowners who do not develop such land. Separately, the Urban Regeneration and Housing Act 2015 introduced new powers for local authorities to incentivise the development of zoned and serviced land, as well as providing for other measures which are intended to facilitate housing development. The Act allows for the possibility of applying the vacant site levy to both brownfield and greenfield development sites as long as they are located in designated areas in local authority development plans for the application of the levy. I understand that the Department of Housing, Planning and Local Government proposes to encourage local authorities to apply the levy on as wide a basis as possible in order to bring housing supply on stream earlier than would otherwise be the case.

On considering the outcome of the public consultation and the enactment of the Urban Regeneration and Housing Act 2015, it was determined that no new tax separate to the vacant site levy - would be introduced to encourage the development of residentially zoned and serviced land. I understand that planning authorities will be issuing notices to owners of vacant sites by 1 June 2018 in respect of vacant sites on the register in 1 January of this year, indicating that the levy will apply to those sites on 1 January and will subsequently be applied on an annual basis thereafter, as long as the site remains on the vacant site register. As the Deputy knows and I announced in budget 2018, it is proposed to increase the rate of levy from 3% to 7% of the market valuation of relevant sites with effect from January 2020.

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