A Green Party minister has said he was willing to leave Government if a land hoarding tax was deferred in the Budget.
Minister of State Ossian Smyth said the delay of the land hoarding tax in 2023 was “absolutely the wrong thing to do” in the middle of the housing crisis.
A new Residential Zoned Land Tax (RZLT) will be charged each year on land that is zoned for residential use and has all necessary services, such as access to water, roads and lighting.
The rate of RZLT is 3 per cent of the market value of the land.
The measure is designed as a policy lever to encourage the development of residential housing on any available land.
However, concerns were raised that the measure could unduly impact farmers.
It was eventually agreed – after delays – following an exemption in 2025 for landlords who seek to have their land rezoned to reflect the activity they carry out on their land.
Speaking to reporters on Wednesday, Mr Smyth said he was “willing to leave Government” if the measure had not been agreed in Budget 2025 last month.
He said: “We did win that argument and so in the Budget we didn’t defer the land hoarding tax.”
As an example of the effect of the measure, he said a supermarket chain is in negotiations to develop a vacant property it owns in Dún Laoghaire to avoid the tax in February.
Mr Smyth was speaking to reporters to launch the Greens’ plan to fill vacant homes and revitalise derelict buildings, billing it as the answer to bringing life to town centres.
Now, in the midst of the general election, the party said it will increase the vacant homes tax and expand its scope to include homes currently excluded because they are deemed uninhabitable.
It also said the plan will break down administrative and regulatory barriers to renovation work and establish a single permitting system for fire, accessibility and planning in a one-stop-shop for renovation work.
It said it would establish a national online register of derelict sites, containing details such as the condition of the buildings, the site’s planning history and zoning objective, and any outstanding levies due on the land.
The legislation to help councils and policymakers identify derelict sites for intervention was introduced by Green Party planning spokesman Steven Matthews.
