Builders may have to pay €2,000 for each new house built near the new Cross City Luas line for the next 30 years.
Dublin City Council is proposing a development contribution scheme for new developments within 1km either side of the line.
Commercial development would be charged at the rate of €38 per square metre and retail at €43 per sqm.
The city council and Fingal Council had to refund nearly €20 million in levies towards the cost of Metro North after the original route was scrapped.
But with Luas Cross City due to come into service by the end of next year the council estimates the scheme will raise over €27m.
However, a report presented by council assistant chief executive Jim Keogan states that this will be just 7% of the total cost of the Luas Cross City currently put at €368m.
The report also claims that the increased value to developments in the area will amount to more than €116m involving an estimated 937 residential developments and 47,000 square metres of office space.
It states that new developments will benefit from an increase in property prices, increased densities and wider benefits like environmental improvement and regional accessibility.
The new Luas line will run from St Stephen's Green providing an interchange with the Luas Red Line in O'Connell Street and through Phibsboro to Broombridge in Cabra where it will link with the Maynooth rail line.
The new contribution levy will not apply to domestic extensions, non-fee paying schools and not for profit community facilities.
The proposal is expected to go for public consultation in the New Year and come back to councillors for a decision next April.
