DUBLIN: A 30 percent Land Value Sharing (LVS) charge on newly developed housing estates is coming as part of a crackdown on speculation. The difference between the existing price and the price after residential zoning will be subject to a 30% LVS. The housing department feels that this could be more than 50% when Part V liabilities and other special charges are added.
Hundreds of acres of land will be included in the new residential zone. Previously used for agriculture and other purposes, land is being restructured for housing. The government is attempting to avoid a situation in which houses cannot be built due to a lack of available land. The new law comes to prevent the owners of new residential zones from increasing the prices excessively.
The new Land Value Sharing and Urban Development Zones Bill will have provisions in this regard. Owners of newly developed land must file a statement regarding the value of the land. The law requires it to specify the pre-existing value as well as the value after being zoned residential.
The new law is expected to go into effect on July 1, 2024. This amount can be paid in advance at the time of planning permission or before. The new law’s list of lands will be published in March 2024. The law must first be approved by the relevant parliamentary committee. With the committee’s approval, the proposed law allows the Housing Minister to levy a LVS of not less than 20% and not more than 30%.
The government believes that the additional revenue generated by LVS will be extremely beneficial to local governments. This revenue is expected to be used to provide infrastructure such as water and electricity.
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