Vacant site levy monitoring
Deputy Howlin asked about monitoring and benchmarking the vacant site levy, citing wider concerns about the Government's housing tax approach. The Minister outlined the levy timetable, saying 180 of 260 registered sites would be liable from 2019 and the higher rate would apply in 2020.
I begin by expressing my concern and sharing the concerns expressed by other Members about all those who have been adversely affected by the current storm conditions. Hopefully, we will have no more fatalities later in the day.
I ask specifically about a programme for Government commitment to have local authorities monitor and benchmark the new vacant site levy legislated for by the previous Government. The Minister for Finance, Deputy Paschal Donohoe, stated recently that he is not in favour of taxing vacant property. He is reported to be considering instead a tax break as a positive incentive, specifically a reduction in capital gains tax from 33% to 15%. Such a proposal narrows the tax base and makes the entire taxation system more fragile. It is the path to ruin and destruction that was followed by Fianna Fáil previously and it is not one we should follow now. Will there be an increase in the vacant site levy or is the levy to be abandoned in favour of a tax break for property owners?
Comment on this
On the planning site levy, the planning Act passed in July makes allowance for an increase in the levy from 3% to 7% in its second year. Of the 260 sites on the register, the levy will be due for 180 in 2019.
Comment on this
Starting in January 2019, the levy will be due for payment in respect of 180 of the 260 sites on the register. The second rate then kicks in in 2020 under the legislation passed in July.