The Vacant Homes Tax (VHT) will share some features of the Local Property Tax (LPT) for administrative purposes. However, VHT is a separate and distinct tax with a different policy aim. The measure aims to increase the supply of homes for rent or purchase to meet demand, rather than raise revenue. Accordingly, the VHT is not expected to yield significant revenue, with estimates in the region of €3-4 million at most. Unlike LPT, which is allocated to Local Authorities, the revenue raised from VHT will accrue to the Exchequer.
Likewise, while VHT will be charged at a rate equal to three times the property’s existing base LPT liability, the charge is unaffected by the Local Adjustment Factor (LAF) which is set by Local Authorities.