Cork City Council collects less than a third of derelict site levies in five years

The council also does not know if they will still receive the money for derelict site levies, as these are to be collected by Revenue rather than local authorities from 2027

A derelict property off South Mall in Cork City in 2023. It comes as last week, finance minister Pascal Donohoe announced the introduction of a new Derelict Property Tax, which will be implemented and collected by the Revenue Commissioners, as part of Budget 2026. Photo via @frank_oconnor

Cork City Council has spent €1.6m on compulsorily acquiring 21 derelict properties since 2020, while less than a third of derelict site levies issued have been paid during this period, new data has shown.

The council’s executive have admitted they do not know if the council will still receive the money for derelict site levies, as these are to be collected by Revenue rather than local authorities from 2027, it was announced in the recent budget.

Figures provided to Labour councillor Ciara O’Connor at the monthly council meeting also show there have been five acquired properties sold on the open market or at sale agreed with a private buyer, and there are 20 properties currently in the process of redevelopment.

Of the €1.6m spent on compulsorily acquiring derelict properties since 2020, some €1.36m was paid in 2022, with nothing spent on compulsory purchase orders in 2020 and 2021.

The council also provided details on the amount of derelict site levies asked for and actually paid over the last five years, and said that they were owed €6.7m in levies, which includes some issued pre-2020.

The figures show that the council asked for €7.2m in levies over the last five years, but just €2.01m had been paid, less than 28%. So far this year, it has issued €1.17m in levies, receiving €376,388.

However, the figures show that there has been an increase in payment of levies, with 32% of the levies issued in 2024 paid, compared to 11% in 2020.

What's your view on this issue?

You can tell us here

It comes as last week, finance minister Pascal Donohoe announced the introduction of a new Derelict Property Tax, which will be implemented and collected by the Revenue Commissioners, as part of Budget 2026.

This new tax will replace the Derelict Sites Levy, which is currently charged at a rate of 7% on the site market value, and will not be a lower rate than this.

Ms O’Connor asked at the meeting if the outstanding levies will be collected by the council or by Revenue, and if they are to be collected by Revenue, if the income from them will be directed back to the council.

She was told by the council’s acting housing director, Nicky Carroll: “We don’t know, is the simple answer. We don’t know if the levies are to be directed back to us, but it’s a question we will be putting to the department.”