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“I farm land on the outskirts of a large city. I am concerned that I will receive a letter from the city council telling me the land is going to be subject to the new levy. What can I do to prevent this from happening?”
The vacant site levy was introduced in the Urban Regeneration and Housing Act 2015. The purpose of the levy is to free up land for development of housing.
It provides for a levy of 3% of the market value of the land in the first year and 7% for second and subsequent years. The levy is applied on land zoned for housing or land zoned for development and renewal of areas.
However, this zoned land can also be part of working farms and farmers in Kilkenny and Limerick in particular have been affected by their lands being included on the register.
Local authorities had to establish a vacant site register from January 2017 and notify the landowners of the proposed inclusion of their land on the register.
By 1 June 2018, the local authorities must have issued notifications to the owners of vacant sites that the levy will be charged on their land. The levy is then applied in January 2019 in respect of 2018 and every year thereafter until the site is no longer vacant.
Potential vacant sites
In identifying the potential vacant sites, the chief executive of the local authority had to submit a report to the elected members of the local authority, so the elected city/county councillors should be aware of the sites’ inclusion.
The local authority will issue a notice to the owner of the vacant sites included in the register prior to 1 June each year to inform them that they are being charged the levy for the current year in the following January. The owner has 28 days to make a submission objecting to their land being included.
If this is not successful, it can be appealed to An Bord Pleanála on the grounds that the site was not vacant for 12 months. However, the burden of proof is on the owner. This means that the submissions which the landowner makes are key to preventing the inclusion of the lands on the register.
It is important that farmers and landowners whose land may be affected by a local area plan/development plan and is zoned for purposes of development other than agriculture should maintain annual records in relation to the land usage.
These submissions could include land declared for BPS payments, inspection results confirming the land was being farmed or sworn statements from vets, agricultural contractors etc confirming they witnessed the land being farmed.
Records
Local authorities have been advised to maintain appropriate records, including photographic evidence as necessary to support their finding that a site was vacant for the necessary period. Consequently, farmers should do the same to prove that the land was being farmed.
Where the owner of a vacant site appeals against the entry of a site on the register, the entry will not take effect until the appeal is finally determined.
A vacant site owner may also appeal the market value arrived at by the planning authority to the Valuation Tribunal. The market valuation is determined by the local authority by instructing a suitably qualified person such as an auctioneer to estimate the price of the site if sold on the open market.
The price is determined as the best market price the owner could get for the site at the date of the valuation.
A vacant site owner may also appeal a demand for payment of the levy by the planning authority on the grounds that the site was no longer vacant in the year concerned or that the levy amount was incorrectly calculated. The appeal is made to An Bord Pleanála and again the burden of proof lies with the owner.
Appeal
The owner has an opportunity to appeal each year when the demand for levy payment is made.
The vacant site levy is payable on a demand by the planning authority within two months, though arrangements may be made or facilitated by the planning authority for the payment of the levy by the owner of the site by instalments.
If not paid, the levy shall be recoverable as a simple contract debt through the Courts. Any levy due will remain a charge on the land until paid.
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