Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

Section 96 provides for the new vacant homes tax through the insertion of the new section into the Taxes Consolidation Act 1997. The objective is to increase the supply of homes for rent or purchase by encouraging the owners of vacant habitable residential properties to bring those properties back into use. The tax will apply to residential properties that are within the scope of the local property tax, LPT, only. It will not apply to properties that are derelict or uninhabitable. The vacant homes tax charge, as the Senator is aware, applies to properties that were occupied for less than 30 days in the 12-month period. The rate will be equal to three times the property’s existing local property tax rate. The tax will be operated on a self-assessment basis, which means property owners will be required to determine whether they have a liability to pay the vacant homes tax, to satisfy any related payment and file their obligation, again, on a self-assessment basis. That applies to valuation, which will be covered by the LPT, and the issue of the 30 days will be based on self-assessment.

Each chargeable period will run for 12 months – from 1 November to 31 October each year. The first chargeable period for the vacant homes tax will commence on 1 November 2022, ending on 31 October 2023. Owners of the vacant properties will be required to self-assess the tax and file a return by 7 November 2023. Payment in respect of the chargeable period will fall in January 2024.

There will be a number of exemptions: where the property owner-occupier has recently died and while their estate is in probate, ending once administration of the estate has been completed; where their property was actively marketed for sale or for rent - that is a very important element; where the occupation or sale of their property was restricted by court order; where the property is undergoing significant structural repair or refurbishment; where the property was vacant as a result of the former occupant’s illness or long-term care; and where the property is owned by a North-South implementation body within the meaning of the British-Irish Agreement.

I gave the dates related to the assessment period. In addition, the legislation will permit the Revenue Commissioners to require property owners to provide records demonstrating that their property was occupied for these 30 days. A surcharge will apply where a vacant home tax return is filed late. The Bill provides for Revenue to establish a register of vacant homes and their associated chargeable person, which allows for exchange of information between the Revenue and other public bodies, such as local authorities, for the purpose of administering this tax.

I understand what the Senator said on the different valuations in the different parts of the country and the difficulties it can cause. Essentially, this is a new tax that is being introduced for the first time. The clear commitment in any new tax is to monitor it closely over a period of its implementation to see how it is working out in practical terms on the ground and any issues that immediately come to light. If there is an unfairness in the way it is designed, that can be examined. However, the first thing we want to do is get the tax up and running on the self-assessment basis, like the LPT is as well. After a short time, we can review any anomalies that arise. That is as much as I can say.