New site tax proposed by competitiveness body
THE Competitiveness Council has called for the introduction of a site valuation tax (SVT) or a tax on commercial property and land that has been zoned and serviced for development, but has yet to be built on.
The proposed tax would replace the current commercial rates system and the vacant site levy and work within the existing planning system.
The Planning and Development (No 1) Bill, 2014 provides for a vacant site levy of up to 3pc of the market value of vacant sites which exceed 0.05 hectares due for introduction in 2019.
Previous attempts to introduce a site valuation tax were dogged with difficulties including the arrival at values that are evidence based, understandable and acceptable to the public.
The proposed tax would also be administered on a self-assessment basis with oversight by the Revenue Commissioners.
Its objective would be to to act as a mechanism to incentivise the development of vacant and underutilised sites in central urban areas, thereby facilitating the most efficient use of land and sites.