Thomas Gould
Question:249. Deputy Thomas Gould asked the Minister for Finance the status of the audit of vacant properties being undertaken by his Department; and if this audit will include the reason for vacancy. [54368/21]
View answerTuesday, 9 November 2021
Questions (249)
Written answers
The recently announced ‘Housing For All’ strategy includes a commitment that the Department will collect data on vacancy with a view to introducing a Vacant Property Tax.
As I have stated on a number of occasions the primary objective of any vacant residential property tax would be to increase the supply of homes for rent or purchase to meet demand rather than increasing tax revenues. However, before introducing such a tax it is important to have a sound understanding of the quantity, locations and characteristics of long term vacant properties, and the reasons why they are vacant.
The recently enacted Finance (Local Property Tax) (Amendment) Act 2021 includes, at Section 39A, a requirement for owners of vacant properties to provide certain additional information to Revenue when completing their LPT Return, including confirming that the properties remain unoccupied at 1 November 2021, the reason why and whether they (the properties) have been vacant for 12 months or more. Once the extended filing date of the 10 November has passed, Revenue will begin validating the data and will advise my Department of the position when the analysis is complete. This information, together with information from other available sources will be used to assess the merits and precise design of a Vacant Property Tax.
It is important to identify the reasons for vacancy, and whether this is long or short-term in nature. There may be genuine and acceptable reasons for vacancy such as refurbishment work, the temporary absence of the owner for medical reasons or pending the grant of probate for a deceased person’s estate. Appropriate exemptions from any charge would have to be considered in addition to acceptable periods of vacancy.