Homeowners will have to declare vacant properties to Revenue and why they are empty

Paschal Donohoe is looking to fast-track new legislation through the Dáil to grant additional powers to Revenue to gather information on vacant homes. Picture: Sam Boal/RollingNews.ie

Owners of vacant homes will now have to declare their unused houses to the Revenue Commissioners and explain why they are empty, as part of reforms to the Local Property Tax (LPT).

New legislation, which finance minister Paschal Donohoe, is looking to fast-track through the Dáil before the summer recess will grant additional powers to the Revenue Commissioners to gather the information on vacant homes.

With 250,000 vacant homes in the country, according to the Central Statistics Office, the new powers will allow the State for the first time to locate these vacant homes and understand why they are not being used to house families at a time of a housing emergency.

First clear picture of vacancy

“For the first time, homeowners will be asked to declare if a property is vacant and will be asked to declare and indicate a reason as to why that vacancy is occurring,” Mr Donohoe said.

This is a significant development for us, because this will be the first time that our taxing authorities will have this kind of information. 

 

In Section 39A of the new LPT Amendment Act 2021, the law provides for the “inclusion on a return to be delivered to Revenue, specified information about vacant properties”.

Further measures being considered

Mr Donohoe said he is “giving consideration” to further measures to reduce the level of vacancy across the country, but said he wants the data from Revenue to get a full and accurate picture of the situation.

It has also been confirmed that 36% of all homes are likely to see an increase in their LPT from November, when new valuations are conducted.
Mr Donohoe said that 33% of homes will move up one band, resulting in a €90 increase in their LPT liability, while 3% will jump 2 bands or more which will see their LPT rise by €200 or more.

It was also confirmed that mica-affected homes in Donegal and Mayo will be exempt from LPT for a period of six years.

In pre-legislative scrutiny of the Finance (Local Property Tax) (Amendment) Bill 2021, the Oireachtas finance committee heard from Mr Donohoe that mica and pyrite-affected homes will not be liable for the tax.

Government engaging on mica redress 

Responding to questions from Sinn Féin’s Pearse Doherty, Mr Donohoe said he was very much aware of the massive anxiety caused by the mica issue.

An estimated 4,000-5,000 houses in Donegal, Mayo, Sligo and Clare have been damaged although the final figure could be double that, according to Minister for Housing Darragh O’Brien.

The Government is currently engaging with affected homeowners about enhancing its redress scheme which is already set to cost €1bn.

At the committee, Mr Donohoe also said no local authority will be worse off by a decision to allow councils retain 100% of the LPT raised in their area. An LPT equalisation fund paid out to poorer local authorities will now be funded by the exchequer.

Under the current system, 80% of the money collected by a local authority from LPT is retained to fund spending while 20% goes into the equalisation fund.