Dáil Éireann Debate, Tuesday - 6 July 2021
242. Deputy Patricia Ryan asked the Minister for Housing, Local Government and Heritage the progress made by each local authority pursuant to circular PL 03/2021 relating to progress on collection of the vacant site levy; and if he will make a statement on the matter. [36277/21]
View answerUnder the vacant site levy provisions in the Urban Regeneration and Housing Act 2015, planning authorities were empowered to apply a vacant site levy of 3% of the market valuation of relevant properties which were listed on 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 register from 2019 onwards which site owners became liable to pay in January 2020.
My Department proactively engages with local authorities with a view to ensuring that the vacant site levy achieves its full potential in terms of bringing concerned sites into productive use. In this regard, my Department issued Circular Letter PL 03/2021 on 8 March 2021 requesting the submission of a progress report on the collection of the levy by each local authority. A response has now been received from each of the 31 local authorities. The progress reports noted the following:
2018
- 89 sites valued at €132m were liable to the levy at the 3% rate in 2019 in respect of 2018;
- 86 letters issued in 2019/2020 demanding levy payments to a value of €4.1m in respect of 2018;
- €905k in levy payments were received in respect of 2018;
- Levy payments of €1.2m are outstanding in respect of 2018.*
(*It should be noted that some sites were cancelled following the issuing of a demand for payment due to appeal or commencement of development etc. As a result, the amount collected plus the amount outstanding does not equal the value of the demands issued.)
2019
- 181 sites valued at €198m were liable to the levy at the 7% rate in 2020 in respect of 2019;
- 153 letters issued in 2020 demanding levy payments to a value of €13m in respect of 2019;
- €1.18m in levy payments were received in respect of 2019;
- Levy payments of €11.5m are outstanding in respect of 2019.
2020
- 215 sites valued at €268m were liable to the levy at the 7% rate in 2021 in respect of 2020;
- 79 letters issued in 2021 demanding levy payments to a value of €11.8m in respect of 2020;
- €21k in levy payments were received in respect of 2020;
- Levy payments of €14.3m are outstanding in respect of 2020.
It should be noted that the vacant site levy is collected in arrears. The levy due in respect of 2020 is collected in 2021. Local Authorities are still issuing demands in respect of 2020. A number of local authorities noted delays in issuing demands for payments in respect of 2020 due to COVID-19. Local Authorities will continue to issue demands for payment of the levy throughout 2021.
All levies due on an individual site will remain a charge on the land concerned until all outstanding levies due are paid. Accordingly, under the 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 not paid. Local authorities are currently in the process of implementing debt recovery procedures to recoup arrears due.
The levy is not intended to be a revenue generating measure with the proceeds accruing to the relevant local authority rather than the Exchequer. The levy proceeds generated are specifically intended to be used by local authorities for the provision of housing and regeneration development in the local area in which vacant sites are located. No more than 10% of the levy monies received by planning authorities may be used on their administration costs in collecting the levy.
The progress reports received from planning authorities in response to Circular PL 03/2021 are currently being examined in greater detail by my Department to consider, amongst other things, what further implementation supports may be required. My Department will continue to engage proactively with local authorities to ensure that all vacant site levies due are paid and that the measure can achieve its full potential.
