Joe Costello (Dublin Central, Labour)
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Question 92: To ask the Minister for Finance if he will confirm that measures to introduce a site value tax are to be included in the 2011 Finance Bill; if he envisages the launch of a consultation process in respect of the introduction of any such tax; if the measures, as implemented for 2012, will involve differential payments for differing house or site sizes, for instance for two, three and four-bedroom houses; if he intends to merge the charge on non-principal private residences into the site value tax for 2012 or at a later date; and if he will make a statement on the matter. [1401/11]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As the Deputy is aware, the National Recovery Plan included a proposal for a site value tax which will be introduced with a fixed household charge of €100 per annum in 2012, with a value-based addition being introduced in 2013. Initial consultation on the implications of a recurrent annual tax on property has taken place with relevant stakeholders. The Non-Principal Private Residence charge is a matter for the Department of the Environment, Heritage and Local Government. However, all taxes and potential taxation measures are constantly reviewed in the context of the annual Budget and Finance Bill process. At this stage, a decision has yet to be taken on the precise legal mechanism to be used to introduce the site value tax and whether this will be done in tax legislation such as the Finance Bill or through other legislation which may fall within the ambit of the Department of the Environment, Heritage and Local Government.

As is customary, it is not proposed to discuss the details of the Finance Bill or of the site value tax in advance of the legislation being published. However, the theory behind site value tax – or land value tax, as it is often called – is that tax is calculated by reference to the value of the land or site irrespective of whether there is a property on the site, or of what type of property is in place.