Planning Contribution

Jonnykitedude

Hi All


Not sure if this was asked before but couldn't find anything.


If/When they bring in house hold tax will this deem the planning contribution dormant, at the moment they say the 100 Euro charge is to fund roads,services etc in your area but I was also told this when we asked what the planning contribution charge was for when building.


Don't want to get into a whole house tax debate as its not the place or forum but just clarification on the above.


Cheers

sydthebeat

Jonnykitedude wrote: »

Hi All


Not sure if this was asked before but couldn't find anything.


If/When they bring in house hold tax will this deem the planning contribution dormant, at the moment they say the 100 Euro charge is to fund roads,services etc in your area but I was also told this when we asked what the planning contribution charge was for when building.


Don't want to get into a whole house tax debate as its not the place or forum but just clarification on the above.


Cheers

http://irishplanningnews.wordpress.com/2012/06/29/planning-levies-expected-to-be-reduced/

i dont think they will be phased out all together, but they will / should be significantly reduced for residential owners in light of a property tax.

There is also talk of exemptions from 'x' number of years from property tax to people who payed contributions between certain years.

df299

Hi All

We have just received planning for conditions with 5k of contributions to Kerry C.C.. The conditions do however state the following:

"The amount of the contribution is calculated in accordance with the councils prevailing development contribution scheme and will be increased from January 1st 2013 and annually thereafter in line with the wholesale price index, unless the scheme is superseded by a further development contribution scheme adopted by the council"

I have looked into it but don't seem to be find confirmation from the goverment as to how the household charge / property tax will affect contributions, past, current or future contributions.

Would anyone know how this is to be addressed and if the contribution scheme will definitely be superseded by the property tax?

Thanks in advance

Dan

daver123

Jonnykitedude wrote: »

Hi All


Not sure if this was asked before but couldn't find anything.


If/When they bring in house hold tax will this deem the planning contribution dormant, at the moment they say the 100 Euro charge is to fund roads,services etc in your area but I was also told this when we asked what the planning contribution charge was for when building.


Don't want to get into a whole house tax debate as its not the place or forum but just clarification on the above.


Cheers

The new household tax and planning contribution are different. The planning contribution payment allows you the right to build a development which has full planning permission and connect to the local services where as the new household tax will be liable on completed existing dwellings.

Jonnykitedude

daver123 wrote: »

The new household tax and planning contribution are different. The planning contribution payment allows you the right to build a development which has full planning permission and connect to the local services where as the new household tax will be liable on completed existing dwellings.

But I'm not connecting to "local services" I paid for my own well, spetic tank and paid ESB a large sum to connect me.

archtech

Jonnykitedude wrote: »

But I'm not connecting to "local services" I paid for my own well, spetic tank and paid ESB a large sum to connect me.

You would have only paid the relevant planning contributions that were applicable to you ie if you are providing your own water supply then that would have been excluded. Local services covers a wider range of local authority services such as environmental etc . I don't have a problem with the principle of a property tax if local authorities learn to use their revenue resourcefully and don't waste it, as has happened in the past

tred

Jonnykitedude wrote: »

But I'm not connecting to "local services" I paid for my own well, spetic tank and paid ESB a large sum to connect me.

I payed 8500 , I have my own treatment plant i have my own services. i will eventually pay water charges. no street lighting. I get nothing in return. Its a farse the lot of it. My understanding originally was, that this money was to fund the local services in the county, so not sure what the property tax is for...germany maybe

daver123

tred wrote: »

I payed 8500 , I have my own treatment plant i have my own services. i will eventually pay water charges. no street lighting. I get nothing in return. Its a farse the lot of it. My understanding originally was, that this money was to fund the local services in the county, so not sure what the property tax is for...germany maybe

i paid 13,000 to fingal co co - 1,700 to esb - 250 to bordgais - 270 to fingal co co for water connection - i got lucky with eircom as a friend knew someone who worked there and he ran the line in for me - i agree it is a farce - they all arrived on different days and the road was cut three times

kkelliher

And most of the country like me paid stamp duty (€38000 in my case) and its all in the past.

I think you can take it that the idea in future will be that the planning contribution will be for connection into the system and the tax will be for ongoing use of.....

Poor Uncle Tom

kkelliher wrote: »

I think you can take it that the idea in future will be that the planning contribution will be for connection into the system and the tax will be for ongoing use of.....

That would mean a fundamental change in the Contribution Scheme.
In 2000, under Section 5 of the Planning and Development Act, a housing strategy was introduced http://www.environ.ie/en/Publications/DevelopmentandHousing/Housing/FileDownLoad,2114,en.pdf
this applies to land zoned for housing developments and to developers in general. It relates to better design and orderly development or some cynics might say it is merely a means of extracting 20% of the value of the development land for the coffers of Local Government.
Anyway, this would leave loopholes where developers could concentrate on one-off sites and potentially avoid the Social & Affordable Contributions. These were closed off by the introduction of Section 96 / 97 whereby non-developers would get exemptions from the provisions of Part 5, or anyone developing over 4 sites in any 5 year period would be classed as a developer and would have to pay the Social and affordable contribution. But again, there was a loophole here as all of the above applied to land zoned for housing.

What if my one-off site was on lands which are not zoned for housing? I bypass all of the above, or if I can get a landowner to apply for the development of a one-off site to then sell to me to develop with no Part 5 contributions payable.

Therefore, two separate aspects had to be introduced to close off this avenue.
1. Development Contributions on one-off unzoned sites.
2. Qualifications for development strategy of one-off rural sites.
Each of which are managed by Local Government through the Development Plans of the Local Areas they cover.

This is just my opinion, but having dealt with these contributions since their introduction, it's how I see it, that the contributions payable on one-off houses is just a loophole closing tax, which nets a nice earner for Local Authorities each year. So, it is difficult for any Local Authority to give an exact reason for the Development Contributions imposed on any one-off site outside of the usually trotted out gem of....

"It is considered appropriate that the applicant should contribute towards the services that are in place or may be put in place to facilitate the development, but this does not guarantee the provision of any amenity or service, express or otherwise, to service the development site"

But to refer to it as a connection charge would be wrong, after all, there is another separate charge due for each connection.