Pearse Doherty (Donegal, Sinn Fein)
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26. To ask the Minister for Finance if he will commit to introducing a vacant property tax in the upcoming Finance (Covid-19 and Miscellaneous Provisions) Bill 2022; the number of local property tax returns in which survey questions on vacancy were completed; and if he will make a statement on the matter. [31250/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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For the Local Property Tax (LPT) valuation period 2022-2025, residential property owners were asked to indicate in their LPT returns the occupancy status of their properties on 1 November 2021 and, where vacant, the duration of and reason for the vacancy. These information requirements were included in LPT returns in accordance with section 39A of the Finance (Local Property Tax) Act 2012 (as amended), which was introduced by the Finance (Local Property Tax) (Amendment) Act 2021. Any information obtained under section 39A may only be used for compiling statistical information in relation to vacant residential properties.

It is important to note that LPT applies in respect of any building which is in use as, or is suitable for use as, a dwelling. Properties that were uninhabitable or unsuitable for use as a dwelling, as at 1 November 2021, are not liable for LPT for 2022. Owners of these properties were not required to value their property for LPT purposes and they were not required to submit an LPT return to Revenue.

As the information on occupancy status was collected as part of the LPT return, all property owners that submitted an LPT return for the valuation period 2022-2025 completed the local property tax survey on vacancy that the deputy has referred to. As of 11 May, 1,250,611 property owners had filed returns in respect of 1,597,200 properties.

I am advised by Revenue that, as with any other tax return, all LPT returns are subject to validation and checking by Revenue, and this extends to the information returned regarding the occupancy status of properties. Where a person files an LPT return but fails to include in the return all of the required information and fails to remedy matters when asked to do so by Revenue, section 146 of the Finance (Local Property Tax) Act 2012 provides that the person will be liable to a penalty of the amount of the LPT that is correctly payable in respect of the property (subject to a cap of €3,000). Accordingly, where a person failed to indicate in their LPT return for the valuation period 2022-2025 that the property was unoccupied on 1 November 2021 and fails to remedy matters when asked to do so by Revenue, the person will be liable for a penalty as outlined.

Revenue have completed a preliminary analysis of the LPT returns received to date which has been shared with my Department. The results of the preliminary analysis suggest that levels of vacancy are low across all counties. The Minister for Finance will be considering this issue in consultation with colleagues before reverting to Government with proposals on the appropriate response. I understand Revenue intends to publish a profile of the occupancy data from the LPT returns very soon.

The Finance (Covid-19 and Miscellaneous Provisions) Act 2022 has recently been enacted so any potential vacancy measure would require new legislation.