Written answers

Tuesday, 21 September 2021

Department of Finance

Vacant Properties

Photo of Thomas GouldThomas Gould (Cork North Central, Sinn Fein)
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52. To ask the Minister for Finance the role his Department has undertaken with the Department of Housing, Local Government and Heritage to develop a vacant properties tax. [44801/21]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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The recently announced strategy, ‘Housing For All’ states that my Department will collect data on vacancy with a view to introducing a Vacant Property Tax. As I have stated before, the primary objective of any vacant residential property tax would be to increase the supply of homes for rent or purchase to meet demand rather than increasing tax revenues. However, before introducing such a tax it is of course important to have a sound understanding of the quantity, locations and characteristics of long term vacant properties, and the reasons why they are vacant.

The recently enacted Finance (Local Property Tax) (Amendment) Act 2021 enables Revenue to collect certain limited information on vacant properties in the LPT return form it will issue to property owners in advance of the new LPT valuation date of 1 November next. This information, together with information from other available sources will be used to assess the merits and impact of introducing a Vacant Property Tax.

It is important to identify the reasons for vacancy and whether this is long or short-term in nature. There may be genuine and acceptable reasons for vacancy such as refurbishment work, the temporary absence of the owner for medical reasons or pending the grant of probate for a deceased person’s estate. Appropriate exemptions from any charge would have to be considered in addition to acceptable periods of vacancy.

While it is the clear intention of Government to introduce a Vacant Property Tax, the matter needs extensive consideration for such a measure to be effective and to determine the properties that should be targeted. Once this information has been collated, I will be in a better position to assess the merits and precise design of a Vacant Property Tax.

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