A leading member of the Government-appointed Commission on Housing is seeking to exempt more than 20 Cork properties from a tax designed to spur building on vacant land.
Michael O’Flynn is the only developer on the commission, which has been asked to make policy recommendations by July as Ministers grapple with the worsening housing crisis. The other members include architects, economists, a senior counsel, academics and a trade unionist.
The residential zoned land tax (RZLT) takes force next year as part of the Government’s effort to unlock vacant sites. The aim is to discourage hoarding by imposing costs on property owners, thereby boosting the supply of new homes.
Mr O’Flynn is the driving force behind O’Flynn Group, one among scores of local property owners who have asked the city and county councils in Cork to delist land from local authority draft tax maps. The others include Blarney Castle owner Charles Colthurst, retailers Dunnes Stores and Lidl, and builders Comer, Cairn and Glenveagh.
Taylor Swift tops the economic charts, electoral victory for Centrist Dads and Apple’s awkward €13bn
Corkman leading €11bn development of Battersea Power Station in London: ‘We’ve created a place to live, work and play’
Record 4,600 submit applications for south Dublin cost-rental apartments
Typical price paid for home by first-time buyer up €88,000 on five years ago
O’Flynn Group, ultimately controlled by a Jersey partnership in the Channel Islands, wants to exclude 18 city properties in Cork and six county properties from the new charge. According to the group, the companies in the business are Irish tax resident.
Blaming “oversights” for the tax designation of such lands, Mr O’Flynn said the draft maps were prepared “without the appropriate full assessment of their applicability” for residential development.
The group’s Cork city council submission seeks to exempt lands at Ballincollig, Glanmire, Ballyvolane, Kerry Pike, Rochestown, Maryborough Hill and Carraheen. The Cork county council submission includes lands at Midleton, Crosshaven and Mallow.
“Many properties identified under the draft RZLT mapping faced restrictions or barriers to their proper development and therefore would not be liable for the taxation measure,” said Mr O’Flynn in response to questions.
He questioned the inclusion of properties developed for uses other than residential “yet the draft mapping was designating those areas as being liable for tax”.
Other lands included “passive open areas” of completed residential development or built-up areas. “Cleary these areas are not liable for taxation.”
He also noted cases where the group was “actively on-site” developing housing in a phased manner as required under planning consents.
“In some cases, the draft RZLT mapping has proposed to tax future phases of that active development, which is illogical. Occurrences such as these should never have been proposed for taxation.”
