Dáil Éireann Debate, Wednesday - 1 June 2022
81. Deputy Paul Murphy asked the Minister for Finance if persons who are nursing-home residents will be included in the category of those not to be taxed in the planned vacant property tax in Budget 2023; and if he will make a statement on the matter. [28300/22]
Amharc ar fhreagraThe Government’s strategy ‘Housing For All’ includes an action for my Department to collect data on vacancy with a view to introducing a Vacant Property Tax. The timeframe for delivery on this commitment is the second quarter of 2022. The Finance (Local Property Tax) (Amendment) Act 2021 enabled Revenue to collect certain information in relation to the occupancy status of residential properties including, where unoccupied, the duration and reason for this, in the Local Property Tax (LPT) return forms submitted by residential property owners in respect of the new LPT valuation period 2022-2025. This information, together with information from other available sources, will be used to assess the merits and impact of introducing a Vacant Property Tax.
In considering the case for such a tax it is important to have a sound understanding of the quantity, locations and characteristics of long-term vacant properties. It is also essential 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 pending the grant of probate for a deceased person’s estate or, indeed, the temporary absence of the owner for medical reasons.
In the design of any tax, it would be important to achieve an appropriate balance between putting enough pressure on vacant home owners to allow the measure to actually work as an incentive to increase the supply of housing, and ensuring any such tax does not arbitrarily or excessively penalise home-owners in a discriminatory way. This would include consideration of appropriate exemptions from any charge in addition to acceptable periods of vacancy.
Revenue have completed a preliminary analysis of the LPT returns received to date which has been shared with my Department. The results of the preliminary analysis suggest that levels of vacancy are low across all counties. I will consider the issue in consultation with colleagues before reverting to Government with proposals on the appropriate response. I understand Revenue intends to publish a profile of the occupancy data from the LPT returns in due course.
