Revenue will not collect existing derelict property levies under new laws

Plans brought to Cabinet would instead introduce a new tax from 2027, with a minimum rate of 7%

A spokesman for Simon Harris said the proposed tax is designed to encourage people sitting on derelict properties to use them rather than as 'a revenue-generating measure'. Picture: iStock

Levies already owed on derelict properties will not be collected by Revenue under new legislation.

Tánaiste and finance minister Simon Harris brought plans to Cabinet on Tuesday for Revenue to begin collecting a new derelict property tax from 2027 as part of measures announced in last year’s budget. The tax will be set at a minimum rate of 7%.

Local authorities have been responsible for collecting levies charged on derelict properties, but collection rates have differed across councils.

Figures discussed at Cabinet show that 11 of Ireland’s 31 local authorities collected no levies at all in 2024. This includes Cavan, Donegal, Dublin Fingal, Galway City, Galway County, Leitrim, Longford, Monaghan, Tipperary, Westmeath, and Wicklow.

Some €26m in levies imposed in 2024 were never collected.

Data shows that there are around 19,000 residential derelict properties across the State.

Under the new plans, the levy will become a tax from January 2027, with the responsibility for collecting it transferred to the Revenue Commission.

It has now been confirmed that outstanding levies owed to councils will not be transferred to Revenue for collection.

Revenue will only be responsible for collecting tax accrued from January 2027 onwards.

Tax to encourage 'behavioural change'

A spokesman for Mr Harris said the tax is being designed to encourage people sitting on derelict properties to use them and to encourage “behavioural change”.

“If we don't collect one extra cent of tax under this particular approach, that's fine,” he said.

This is not a revenue-generating measure. 

The new plan for dereliction came under fire in the Dáil, with Sinn Féin leader Mary Lou McDonald telling Taoiseach Micheál Martin that the plan “lacks the teeth and urgency needed to tackle dereliction head on”.

She added that it is “incredible” that there is nothing in Mr Harris’ proposal to ensure that the more than €30m already owed in derelict sites levies is collected. She said this has gifted “a multimillion euro amnesty to land hoarders”.

Government sources stressed that local authorities can continue to chase property owners for unpaid levies, even when the new derelict tax comes into force.

Dromcollogher cinema fire centenary

Separately, culture minister Patrick O’Donovan received Cabinet approval for the centenary events for the Dromcollogher cinema fire which occurred on September 5, 1926.

Some 48 people died, which was around one tenth of the Co Limerick town’s population.

A photo in the 'Examiner' from the scene of the Dromcollogher cinema fire in September 1926. Picture: Irish Newspaper Archive

A State-led commemorative event will be the central event, taking place on September 5.

President Catherine Connolly has been asked to lead the commemoration. It will take place on the grounds of Dromcollogher Church, with strong community involvement.

The National Archives of Ireland will run an exhibition in Dromcollogher community hall for a month after the state-led event. It will show the records of the Dromcollogher Disaster Relief Fund.

An Post has agreed to issue a commemorative stamp on September 3, 2026. There will also be several community and local authority events.

• Louise Burne, Political Correspondent