Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
Link to this: Individually | In context | Oireachtas source

160. To ask the Minister for Finance if he will provide a detailed report on the effectiveness of the vacant site levy; if he needs to reconsider the timeline and the rate of the new zoned land tax; and if he will make a statement on the matter. [55852/22]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Department of Housing, Local Government and Heritage (DHLGH) have informed me that, under the vacant site levy provisions in the Urban Regeneration and Housing Act 2015 (the Act), planning authorities were empowered to apply a vacant site levy of 3% of the market valuation of relevant properties, which were listed on the local authority vacant site registers in 2018, which relevant owners were liable to pay in January 2019. The rate of the levy increased to 7% for sites listed on local authority vacant sites registers from 2019 onwards which site owners became liable to pay in January of the following year.

DHLGH issued Circular Letter PL 03/2022 on 25 March 2022 requesting the submission of a progress report on the collection of the levy by each local authority. A response was received from each of the 31 local authorities and this information is provided in the attached Table.

Under section 19 of the Act, unpaid levies due remain a charge on the land in question until they are paid. Accordingly, under vacant site levy provisions, there will be a cumulative effect associated with not activating a site for development purposes for each year that a site remains vacant or idle and in respect of which levy liability is unpaid.

Regarding the residential zoned land tax, a two-year lead in time was considered appropriate for a number of reasons. The purpose of the measure is to encourage those who own land, on which homes could be built, to build those homes. The process of carrying out a nationwide mapping exercise and allowing sufficient consultation with affected landowners is one that unavoidably takes time. In particular, it was necessary to allow sufficient time for landowners to view and prepare submissions on the draft maps.

Designing homes, applying for planning permission and accessing finance takes time and I it is appropriate that landowners also have sufficient lead in time so as to have the opportunity to activate their land and start building homes.

The experience gained through the operation of the vacant site levy has been brought to bear in developing the residential zoned land tax measure and the opportunity has been taken to mitigate numerous challenges, which arose in respect of the vacant site levy. Therefore, when considering the 3% rate of the residential zoned land tax and the current 7% vacant site levy we are not comparing like with like. On this basis, it is felt that a rate of 3% is proportional at the outset.

">Payment Report