Martin Browne
Ceist:1196. Deputy Martin Browne asked the Minister for Housing, Planning and Local Government the measures he has put in place to ensure a full collection of the vacant site levy (details supplied). [8867/20]
Amharc ar fhreagraWednesday, 3 June 2020
Ceisteanna (1196, 1210, 1211)
Cian O'Callaghan
Ceist:1210. Deputy Cian O'Callaghan asked the Minister for Housing, Planning and Local Government the number of local authorities which have active vacant site registers; the amount collected by the vacant site levy in 2019; the estimated amount that could have been collected if all vacant sites were included; and if he will make a statement on the matter. [8969/20]
Amharc ar fhreagraCian O'Callaghan
Ceist:1211. Deputy Cian O'Callaghan asked the Minister for Housing, Planning and Local Government the way in which the compliance rate for the vacant site levy compares to the local property tax; the reason for the difference; and if he will make a statement on the matter. [8970/20]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 1196, 1210 and 1211 together.
Under 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.
The primary objective of the levy is to act as a mechanism to incentivise the development of vacant and underutilised sites in urban areas for both the provision of housing and the development and renewal of land, thereby facilitating the most efficient use of such land and sites and enabling them to be brought into beneficial use rather than allowing them to remain dormant and undeveloped. 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.
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 PL 09/2019 on 13 November 2019 requesting a progress report on the implementation of the levy by each local authority.
The returns from the local authorities indicated that, as of 31 October 2019, there were 359 sites listed on local authority registers. These sites had a market valuation of €144.5m and were liable to the levy at a rate of 3% in 2019, indicating estimated levy proceeds due of €4.335m.
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. Local authorities are currently in the process of initiating debt recovery procedures to recoup levy arrears which remain outstanding.
Information on the collection rates for Local Property Tax is the responsibility of my colleague the Minister for Finance and is a matter for which I have no function.