A little over 1 per cent of the €5.5 million due under the vacant site levy in 2021 was collected, Department of Housing figures show.
The levy was introduced in 2018 at a rate of 3 per cent of the valuation of properties which were on local authority vacant site registers. The levy increased to 7 per cent the following year.
The latest progress report on collection of the levy showed that council only collected levy charges for four sites in the State during 2021, with the revenue brought in amounting to just €75,425.
This was despite 110 demands for the payment of levies throughout the State that year, with a total of €5.51 million due. The amount collected represented 1.37 per cent of the levies due.
The figures were contained in a response to a parliamentary question submitted by Green Party TD Patrick Costello.
The records showed that nationally the percentage figure of land owners complying with the tax has been very low since its introduction. The figures dipped substantially when the levy was increased from 3 per cent to 7 per cent.
There have been significant disparities between local authorities in terms of imposing the levy. A total of 12 councils do not have a vacant sites register and have never imposed a fine on any landowner. According to the information supplied in response to the parliamentary question, councils in Carlow, Cavan, Clare, Offaly, Mayo, Louth, Leitrim, Laois, Monaghan, Kerry, and Galway County have issued no demands at all since the levy was introduced.
By contrast, the value of vacant land in Dublin has been valued at €20 million, with Cork, Galway, Sligo, South Dublin, Dún Laoghaire-Rathdown, Meath and Kildare all recoding multimillion euro valuations for vacant sites.
In his response to the question, Minister of State Kieran O’Donnell acknowledged the shortcomings of the current arrangement. “It should be noted that unpaid levies due remain a charge on the land in question until they are paid,” he told Mr Costello. “My department will continue to engage proactively with local authorities to ensure that all vacant site levies due are paid.”
The Government is to replace the levy with a residential zoned land tax, which will see the rate revert to a lower 3 per cent of the value of vacant land. The levy is to be collected by the Revenue Commissioners rather than local authorities in future. A similar decision was taken in relation to the local property tax after it became clear that compliance was low when local authorities were charged with collecting it.
Minister for Finance Michael McGrath has said that the new tax will help to activate planning permissions and the development of green and brownfield sites.
Social Democrats housing spokesman Cian O’Callaghan tabled a Private Members’ Motion in the Dáil last month calling for fines to be increased to as much as 10 per cent of the total value for vacant and derelict houses. Speaking at the weekend, he said the vacant sites tax administered by local authorities had been riddled with exemptions and get-out clauses.
“It’s important that this replacement tax is used effectively to get serviced sites with planning permission built on,” he said. “There are far too many sites in prime locations with full planning permissions left sitting idle for years. In the middle of a housing crisis this should not be tolerated.”
