An economic workshop in Dublin has been told that the Government could set up a site valuation tax quickly, with an average charge of €625 per household.
Economist Ronan Lyons said the tax would raise about €3 billion a year in revenue. He said that 80% of the information required to set up a tax system, based on an annual charge of 2% of the land value, already exists and could be used to levy a new tax.
In his work he has divided the country into 4,500 districts, five different house types and ten different valuation bands.
Under this system those living in Dublin would pay the most, while those living in rural areas would pay the least, because of the relative values of land in different parts of the country.
However, as the system is based on the size of the site, rural dwellers with big gardens could find themselves paying more than city dwellers living on small sites.
A site valuation tax is based on taxing the square metres of a site, not the value of the property on it. So the key thing is to determine the value of each site.
Using a database of 1.3 million sales and rental adverts posted between 2006 and 2011, Mr Lyons says it is possible to determine the relative value of land in different parts of the country, an in different parts of cities.
"The value of a property is the value of the building and the value of the land it is on. If we know the value of a property type, (eg apartment, bungalow, etc) we can calculate the land value", said Mr Lyons.
The economist also claims that the site valuation tax would be fairer and raise more money than the €100 charge the government is levying on all residential property. It would replace commercial rates and stamp duty.
By taxing property at 2% of the site value annually, the tax could raise €3 billion annually, of which €1 billion would be new revenue.
"Three quarters of Irish peoples wealth is tied up in property, and yet it it untaxed. Those who argue for a wealth tax should support a site tax as it is effectively a tax on wealth", argued Mr Lyons.
He said the system could be amended to make allowances for elderly people with no incomes, or first time buyers who bought property at the height of the boom, and who are under most financial pressure.