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A Site Value Tax for Ireland: Approach, Design and Implementation

Author

Listed:
  • Micheal L. Collins

    (Department of Economics, Trinity College Dublin, Ireland)

  • Adam Larragy

    (Royal Holloway, University of London, United Kingdom)

Abstract

Ireland's Memorandum of Understanding (MoU) with the EU/IMF requires government to introduce a recurring annual property tax. While the MoU has not specified the precise form this new taxation measure will adopt, commitments in the National Recovery Plan 2011-2014 and Fine Gael/Labour Programme for Government have pointed towards the introduction of an annual Site Value Tax (SVT). Budget 2011 suggested that the yield from this tax source would grow from 180m in 2012 to reach 530m in 2014. Similarly the MoU commits government to raising additional taxation revenues of 1.5bn in 2012 and 1.1bn in 2013 with both to be partly funded by a property tax and increases to that tax. To date assessments of the feasibility of a SVT (by the Commission of Taxation and the Department of Finance) have pointed towards a series of practical difficulties associated with its introduction. This paper outlines a proposal to overcome these difficulties and to introduce a credible, fair and reliable annual SVT from January 2013. The paper uses the land registry database of the Property Registration Authority of Ireland (PRAI) to outline the structure and administration of a SVT.

Suggested Citation

  • Micheal L. Collins & Adam Larragy, 2011. "A Site Value Tax for Ireland: Approach, Design and Implementation," Trinity Economics Papers tep1911, Trinity College Dublin, Department of Economics.
    • Handle: RePEc:tcd:tcduee:tep1911
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    File URL: http://www.tcd.ie/Economics/TEP/2011/TEP1911.pdf
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    References listed on IDEAS

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    Cited by:

    1. Aoife K. Hurley & James Sweeney, 2024. "Irish Property Price Estimation Using A Flexible Geo-spatial Smoothing Approach: What is the Impact of an Address?," The Journal of Real Estate Finance and Economics, Springer, vol. 68(3), pages 355-393, April.

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    More about this item

    Keywords

    Taxation; Property; Fiscal Policy; Ireland;
    All these keywords.

    JEL classification:

    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • H27 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other Sources of Revenue
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue

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