Madam, – While I agree with the analysis set out by Martin Walsh and the remedies he proposed (Opinion, April 25th and 26th), particularly the relationship of rent to value and the need for better planning, what he did not highlight sufficiently in the analysis was the key role of land prices in any property bubble and the impact that site value tax would have on controlling land prices in the future.
There is, in the current Programme for Government, a proposal to introduce a property tax or site value tax (SVT) and the Department of Finance is examining the alternatives.
It is important that SVT is selected, as it is the most equitable and effective tax, and has a proven record in controlling major fluctuations in land and property values in the United States and other countries. It is also a stimulus to better planning, encouraging optimum use of zoned land and de-zoning land not ready for development.
A detailed study has been undertaken for the Smart Taxes Group by Constantin Gurdgiev, the Trinity based economist, in which it compares favourably with all relevant alternatives. A further study is being prepared for the valuation of all land in a prototype area.
Such is the urgency of this matter that a major international conference on property taxation is taking place at the Dublin Hilton Hotel the week after next and a special session on site value tax is set for May 9th. – Yours, etc,