Tuesday, September 15, 2009

NAMA and windfall taxes

During a discussion on zoning matters in the Pembroke-Rathmines ward at last night's branch meeting, two interesting issues came up with regard to the NAMA setup and one of the Green Party suggestions.

The first issue concerned how long planning permission last for. Say at the height of the boom I got planning permission for 100 units in three phases on a site. I started construction in 2006 and finished 25 units and then mothballed another 25 that were halfway there. Phase 3 of the final 50 units never started. How long do I have to turn the sod on phase 3 before my planning permission expires? And if NAMA have paid the long term economic value does that value include the completed houses on the site or just the lump of land?

Secondly we were disucssing the windfall tax on rezoned land. If such a tax were introduced, any profits on the sale of land rezoned by the council would be subject to an 80% tax, effectively implementing the Kenny Report of 1973. But what would happen the other way. Say the council rezone the land that phase 3 of my development back to Z9 to provide a local park, 20 years after I fail to build my houses. Can I now apply for an 80% rebate on taxes? Or would they have to purchase the land back off me at full market rate (whatever that is) before rezoning?

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