Dáil Éireann Debate, Tuesday - 4 October 2022
239. Deputy Ged Nash asked the Minister for Finance the estimated number of housing units that are expected to be subject to the vacant homes tax in 2023; the number of homes that informed the €3 million yield in Budget 2023 documentation; and if he will make a statement on the matter. [48536/22]
View answerAs the Deputy is aware, the Vacant Homes Tax is a new measure announced on Budget Day, which aims to increase the supply of homes for rent or purchase to meet demand. Further detail on this measure will be made available on the publication of the Finance Bill on 20 October. The introduction of this tax follows from my Department's commitment under Housing for All to collect data on vacancy with a view to introducing a vacant property tax. The Finance (Local Property Tax) (Amendment) Act 2021 facilitated the collection on data on vacant property through LPT returns.
A preliminary analysis of the vacancy data was published by Revenue in July this year, following the LPT revaluation in November 2021, and can be found on their website: www.revenue.ie/en/corporate/information-about-revenue/statistics/local-property-tax/lpt-stats-2022/index.aspx
In arriving at the estimates for the Budget documentation, certain assumptions were made based on the Revenue data and took into account the number of long-term vacant properties (those unoccupied for greater than 12 months), their valuation band, as well as their reasons for lying vacant which may correspond with an exemption from the tax. It is tentatively estimated that less than 15% of the total properties reported as vacant may be in scope of the tax.
As stated in my Budget speech, this measure aims to increase the supply of homes for rent or purchase to meet demand, rather than raise revenue The estimated yield is low, as I anticipate this tax will influence behaviour and lead to property owners putting their vacant properties to more effective use. As such, the number of properties who will be subject to this tax and the eventual yield may be lower than the estimates provided.
