To qualify for this tax a town or city must have a population of 4,000 or more. This includes areas such as Navan, Dundalk, Cork, Limerick, Dublin and Galway.
The second phase of the tax will include towns with a population of 2,000 or more.
The new Derelict Property tax will replace the current Derelict Sites Levy which currently charges the owners of a derelict property on the Derelict Sites Register 7% of the property's market value each year.
The DPT will replace the levy with at least the same rate, of 7% of market value, but may possibly be higher. According to official sources there will also be a crackdown on unpaid levies.
Simon Harris, the Tánaiste and Minister for Finance, is set to update the Cabinet on Tuesday with the intention of the tax being enacted with the Finance bill later this year.
In a statement to the press Mr Harris called the rate of derelict buildings across the country "an absolute disgrace,".
He continued that the tax is not to bring the state money, but rather a tax to incite a change in behavior. Success will be shown by the number of homes restored.
There are currently 19,438 estimated residential derelict residential properties in Ireland.
Officials are continuing to work on the fine details of the scheme before it will be introduced in early 2027.
