IOM Task Force Mulls Tax On Undeveloped Land

by Jason Gorringe, Tax-News.com, London

29 May 2002

An Isle of Man governmental task force is considering proposals to impose a tax on land which has been zoned for housing but not developed, according to a report in the Isle of Man Online news service this week.

The measure, proposed on Tuesday by Ayre member and former DLGE Minister, Edgar Quine would hit developers and investors who hold on to land without developing it, in the hopes of getting a better price. It has been suggested that such a step would significantly impact on the Island's housing shortage, a topic which dominated the last general election.

Mr Quine proposed a tax on land which has been zoned for housing for over two years, and on land held with the option to purchase, arguing that low interest rates have made property investment an increasingly attractive prospect of recent times, which has effectively meant that more and more land is falling into the hands of investors and developers:

'How can the community get off the treadmill if existing zoned land is in developers' or investors' hands and additional land being zoned for housing is also falling into their hands?' Mr Quine asked, adding that: 'The Manx people are being held to ransom and will remain in this position for years to come unless decisive action is taken to deflate the bubble.'

According to the IOM Online report, Chief Minister Richard Corkhill proposed that the Task Force (which he chairs) should be allowed to report back to the Tynwald in July.

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