The Irish government has covered discussion of the proposed property tax in a blanket of silence. We fear the worst.
The developers, speculators and banks are set for another bail-out by the ordinary citizen.
But it is not too late yet if we wake up and demand a Site Value Tax instead of a property tax that will exempt the 1%.
Site Value Tax (SVT) what is it?
On the basis that it is the activity of the community that makes land valuable SVT is a tax designed to maximize return of value to the community.
The tax is levied on the site occupied by each dwelling based on the amenities provided by the community to that location.
Because the tax would apply equally to undeveloped zoned land it would ensure no hoarding or overnight “killings” so no “bubbles”.
The benefits to Ireland and its citizens of Site Value Tax
*Because SVT would levy a tax on the footprint of all homes and zoned land, whether developed or not, it would provide a steady known income to the government and avoid future bubbles.
*As this footprint would be rated to reflect the amenities provided by the community those with the most would pay more and those with less would pay less making it a fair tax.
*SVT seen as a fair tax is likely to be more acceptable to citizens.
*As SVT would include undeveloped zoned land it would broaden the tax base reducing the burden on homeowners.
* SVT will not penalize owners who improve their properties thus stimulating the market.
* By holding the land values steady SVT will reduce the costs of new housing thus stimulating the market.
*SVT would seriously discourage empty or derelict sites again a stimulus to the market.
*SVT does not allow the shelter of tax havens; everyone pays for what they have there is no clever loophole escape.
*SVT means that increase of values through zoning or increase in amenities flows back to the community immediately, no hoarding
*SVT would be easy to implement using existing databases
* SVT would be easy for everyone to understand on the basis that everyone only pays their community in proportion to what they get from their community.
* SVT By steadying the cost of housing reduces inflation.
* SVT By contributing to lower wage and housing costs makes Ireland more competitive.