PRETTY VACANT? IS THE VACANT SITE TAX AN EFFECTIVE TOOL OR A BLUNT INSTRUMENT?
W
hen
the
so-called
‘vacant site tax’ was first introduced via the
Urban Regeneration and Housing Act 2015, it aimed to increase the supply of land for muchneeded housing by introducing a financial penalty for suitably zoned sites that were not brought forward for development. The Planning and Development (Amendment) Act 2018 made some amendments: n levy increased from 3% to 7%; n clarification re: “vacant or idle” lands –
7%
exemption for certain residentially zoned land
VY LE
being used for farming; and, n removal of reduced/zero rates of levy (where a mortgage or loan exceeds the valuation).
Consequently, a considerable number of
Dublin City Council itself is liable for €5.6m or
landowners, such as farmers and religious
71% of this. The Council owns the three most
Loopholes
orders, benefited from this provision and were
valuable sites on the register, which attract an
One of the aims of the 2018 Act was to close a
excluded from local councils’ vacant site
annual liability of just under €5m. Therefore,
perceived loophole whereby a site could avoid
registers. Some 60% of all sites on local
the very purpose of the levy, to allow local
being labelled vacant or idle if used for non-
authority registers were removed.
authorities to fund the provision of housing, has
residential purposes (i.e., farming). A suitably
become a drain on the financial resources of the
zoned site would now be liable for the levy where
Local authorities
local authority with the largest population in
it was being used for a purpose other than the
Figures compiled by The Irish Times in January
the State.
provision of housing. However, the tax was only
2020 indicated that eight out of 31 local
The European Commission Country Report for
applicable where the most recent purchase of
authorities across Ireland did not include any
Ireland 2020 stated that the vacant site levy
the land occurred after it became zoned.
vacant sites on their registers. Dublin City
“might require some refinement to increase its
Council’s register has 62 sites on it as at
effectiveness”, with a number of local authorities
THE LAST WORD
February 2020, 15 of which list the Council itself
reporting difficulties in interpreting the law and
as the owner. The overall cumulative tax liability
identifying vacant sites. Therefore, it is likely that
Niall Brereton Director, Professional Services Department, Bannon
from all vacant sites currently on the register
the vacant site tax and its implementation may
within the Dublin City Council administrative
be subject to further reform during the tenure of
area is approximately €7.9 million. However,
the new coalition Government.
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SURVEYORS JOURNAL Volume 10, Issue 2, Summer 2020
