Summary of Different Types of Property Taxes September 2023

Summary of Different Types of Property Taxes September 2023

There have been a number of different property taxes introduced in the recent past.  These are aimed at increasing housing supply.  Some of these main taxes are as follows:

 

1. Vacant Homes Tax

• Applies to residential properties which are in use as a dwelling for less than 30 days in a 12-month period.
• The first period is from 1 November 2022 – 31 October 2023.
• The first return is due by 7 November 2023 and the first payment is due by 1 January 2024
• The rate of VHT is 3 times the LPT liability.
• There are various exemptions provided for within the legislation.
• Further information is available [ here ].

2. Residential Zoned Land Tax

• Applies to lands which are zoned for residential or mixed–use (including residential) purposes in a local authority Development Plan, and which are serviced sufficiently or capable of being serviced sufficiently to support residential development.
• Maps have already been published by local authorities which identify lands which it is anticipated will be subject to this tax. Each local authority will publish a final map by 1 December 2023.
• The first tax will fall due on 1 February 2024, with a filing and payment date of 23 May 2024.
• There are various exemptions provided for within the legislation.
• Further information is available [ here ].

3. Land Value Sharing Tax

• The legislation for this tax is currently awaiting finalisation and enactment.
• It provides for a charge of 30% on the difference between existing use value and the market value of land that has been zoned for housing.
• It is proposed that the new LVS will apply to all lands that are zoned for the purposes of residential use or mixed–use.
• It is also proposed to apply LVS to commercial and industrial development zonings over time.
• Local authorities will publish a map in March 2024 showing the lands within the scope of LVS
• Thereafter, landowners will be required to submit self-assessments of values before 1 July 2024.
• There are various exemptions provided for within the legislation.
• The first payment will be due circa December 2024.
• Further information is available [ here ]

 

It is critical that you can identify whether or not you will be subject to some or all of the above taxes.

 

Should you wish to discuss, please call your usual PSC contact.