We learn that the Government is preparing to introduce a new Derelict Property Tax across 107 cities and towns, with plans to expand it further to 171 locations.
The stated aim is to bring long-term derelict buildings back into use, restore communities and create more homes. On paper, few people would disagree with that goal. Dereliction is a blight on towns, villages and city streets across Ireland and here in Thurles, Co. Tipperary, one only has to look at the Munster Hotel on Cathedral street, to fully understand the negligence in fulfilling same obligation.
But there is a bigger question here: how much more can people and property owners be taxed before Government admits that taxation has become its default answer to every problem?
We already have property taxes, vacant property measures, levies, charges, stamp duty, planning costs, compliance costs and endless layers of bureaucracy. Now, once again, the solution being offered is yet another tax.
The new Derelict Property Tax will replace the current Derelict Sites Levy, which is charged at 7% of the market value of a property, and the new rate is expected not to be lower. In other words, this is not a light-touch measure. It is another significant financial burden, this time once again to be administered by Revenue.
Of course, owners who deliberately allow buildings to rot, while communities suffer should be held accountable. No one wants to see usable homes and buildings left idle during a housing crisis.
But the Government must also recognise that not every derelict property is being held by a wealthy investor or speculator. Some are tied up in probate, in legal disputes, planning delays, lack of services, structural costs, family circumstances or impossible refurbishment expenses.
Punishing everyone with another tax risks missing the real issue. Ireland does not need a Government that simply keeps finding new things to tax. It needs a Government that removes barriers, speeds up planning, supports realistic refurbishment, cuts red tape and makes it financially possible to bring properties back into use.
Success should not be measured by how much money Revenue collects. It should be measured by how many buildings are restored, how many homes are created and how many communities are revived.
If this tax becomes just another revenue stream, then it will be another example of a Government that taxes first and solves later.
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