Michael Noonan (Limerick City, Fine Gael)
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The programme for National Government contains a commitment to "consider, arising from the previous Government's deal with the IMF, various options for a site valuation tax. Any site valuation tax must take into account the significant number of households in mortgage distress and provide local government with a reliable stream of revenue". Initial consultation on the implications of a recurrent annual tax on property has taken place with relevant stakeholders. 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.

At this stage, a decision has yet to be taken on the precise legal mechanism to be used to introduce a 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 Environment, Community and Local Government.

It is not customary for the Minister for Finance to comment on possible taxation measures or the detail of their implementation prior to their introduction.