New report on vacant site levy

WICKLOW has been revealed as one of only four counties which collected a tax intended to discourage land owners from hoarding land.

A new report by the Parliamentary Budget Office (PDO) outlined some of the challenges faced by local authorities in implementing the vacant site levy across the country.

The vacant site levy came into force in January 2018. It is a measure designed to encourage the development of vacant sites and prevent land hoarding. The rate of the vacant site levy increased from 3 per cent of the market value of the site to 7 per cent in 2019. Each local authority is responsible for collecting the vacant site levy and for keeping a register of vacant sites.

Wicklow, Dublin City, Kilkenny and Waterford City and County collected payments under the levy totalling €882,000 in 2019. However, the PDO report states that the total value of outstanding payments in 2019 was €2.3 million. Unpaid levies due on a vacant site remain as a charge on the land until all outstanding levies have been paid.

The Garden County is also one of 17 local authorities which has an active register of vacant sites that have been assigned market valuations. There are around 25 vacant sites in towns including Baltinglass, Bray and Rathdrum on Wicklow County Council’s vacant site register, with the most recent update on their website from March.

The PBO report highlights that there have been problems with the implementation of the vacant site levy including difficulties identifying where a site is vacant and the ownership of a site. It recommends the introduction of a more centralised approach to assist local authorities. Based on information from local authorities, the report suggests that up to 18,000 homes could be built on vacant land sites around the country.