Tánaiste proposes new tax for owners of derelict properties

Owners of derelict properties in County Westmeath are expected to be impacted by a new tax as part of government plans to address long-term vacancy and dereliction issues in urban areas.

An Tánaiste Simon Harris will bring proposals to cabinet tomorrow (Tuesday) for a new derelict property tax which would be collected directly by Revenue and would replace the existing derelict sites levy which is currently administered by county councils.

The measure will eventually apply to 171 urban areas with the initiative introduced on a phased basis.

Initially, the tax will apply to derelict properties with population centres of more than 4,000. Under the second phase of the initiative, the measure will then be extended to urban areas with a population higher than 2,000.

The derelict sites levy is currently charged at seven percent of a property’s market value and the new tax is not expected to be lower than that rate.

According to An Tánaiste, it will be self-assessed and backed by Revenue enforcement powers.

Announcing his derelict property tax intentions to the media, An Tanaiste Simon Harris said that local authorities were "letting young people down" in a time of a "housing emergency".

An Tánaiste claimed that local Councils had been given "extra funding and extra staff" yet "haven't done enough" on dereliction.

"We (government) are going to have to take this over, as we can't leave it to our local authorities, as they have failed in their duties to adminsiter the derelict sites levy," An Tánaiste said.