The Government has taken the first steps to impose a €200 annual charge on holiday homes across the country.
The Cabinet today approved for legislation to be drafted that will allow local authorities to introduce the controversial levy in coming months.
The charge will hit owners of up to 200,000 units of private rented accommodation, holiday homes and other non-principal residences within the State.
It will not be applied to new dwellings that have yet to be sold or to properties purchased abroad.
The charge is expected to generate €40 million euro for the Exchequer over a full year.
The charge will be levied and collected by local authorities and the revenue will be used to fund local services.
The legislation is expected to include penalties and fines for owners who fail to declare eligible properties.
PA