Kerry’s rural derelict site owners potentially off the hook with coming tax reforms

By Alastair Tibbs, The Kerryman

A Kerry councillor has criticised new proposals for a derelict site tax which would abolish the existing penalty in rural areas.

Fine Gael Councillor Michael Foley called on his party leader Simon Harris to apply levies to derelict properties regardless of location.

The Tánaiste recently announced a proposal to overhaul the existing derelict site levy, initially applying it only to towns with more than 4,000 people.

Following previous reforms that would see the 7pc annual levy collected by Revenue instead of Local Authorities, Mr Harris said this would be introduced under Budget 2027.

For Kerry, this would mean the 80 or so sites that are on the county’s derelict site register, and therefore subject to a 7pc levy, would be reduced to around 27.

“I cannot understand why the Government is proposing a tax that will initially apply only to towns with populations of more than 4,000 people,” said Cllr Foley.

“Dereliction is just as damaging in our smaller towns and villages, yet they are being completely overlooked in this proposal.

“Those responsible for derelict properties can simply ignore derelict site notices, knowing there will be no meaningful consequences under this new system. That is unfair on local communities who are working hard to revitalise their areas.”

While a second phase has been mooted, whereby the measure will be extended to towns with populations of 2,000 or more, in Kerry this will mean only Castleisland, Killorglin and Kenmare join Tralee, Killarney and Listowel as taxable locations.

In the Listowel Municipal District, only three out of 17 properties on Kerry County Council’s derelict site register would be affected.

Cllr Foley’s own town of Ballylongford, which has five properties on the register, would likely never see any derelict penalties if taxable sites were designated in this manner, given its small population.

“If we are serious about addressing rural decline and increasing housing supply, we must ensure that every derelict property has the opportunity to be brought back into productive use,” said Cllr Foley.

“A derelict building in a village can be just as important to its community as a derelict building in a city centre....Government policy should be supporting the regeneration of our villages and small towns, not excluding them.

“Every derelict property that can be brought back into use represents a potential home for an individual or family and a boost for the local community.”