The Government will be covering the cost of the 13.5 kilometre ring road, but local contributions will be necessary for the link roads, amounting to €4 million.
Work on the long-awaited ring road, which will encircle Tralee and provide relief from chronic traffic congestion, is not due to start for a number of years because of funding cutbacks.
Travel time for through traffic in Tralee will be reduced by 73%, following the construction of the ring road, according to traffic consultants.
Members of Kerry County Council have voted in favour of the new levy but, earlier this month, opposition to the levy was expressed at a Tralee Town Council meeting, amid claims that it would inhibit development.
The town council deferred a decision on the issue for a month.
The proposed levy is €24.43 per square metre for houses and €29.31 per square metre for non-residential developments.
Meanwhile, the busy N86 Tralee to Dingle road has been earmarked for funding under a tourism pilot scheme.
The National Roads Authority (NRA) has announced €950,000 to upgrade the road.
Surveying work is to begin immediately and up to 10km is in need of realignment.
Other sections of the road may be widened and work is due to commence in 2012.
Dingle Fine Gael councillor Seamus Cosai Fitzgerald said the road was one of the most trafficked tourist routes in the country during the summer and people had been seeking improvements for decades.
“Any improvements would be welcome and would be a boost for the area,” he added.
As many road projects around the country are due for completion, he said he had been told by the NRA money should be available for the N86 from 2012 onwards.