Dáil Éireann Debate, Thursday - 16 December 2021
140. Deputy Steven Matthews asked the Minister for Finance the position regarding the zoned land tax; the provisions being put in place to facilitate its introduction; if a timeline will be provided for its roll-out; and if he will make a statement on the matter. [62213/21]
View answerThe Finance Bill introduces Part 22A into the Taxes Consolidation Act 1997, which gives effect to the measure I announced on Budget day regarding the Residential Zoned Land Tax. This measure is a part of the ‘Housing for All’ Strategy published by the Department of Housing, Local Government and Heritage in September 2021.
The Residential Zoned Land Tax is designed to prompt residential development by owners of land that is zoned for residential or mixed use purposes and that is serviced, and its primary objective is to increase the supply of housing rather than to raise revenue.
The Residential Zoned Land Tax is an annual tax, calculated at 3% of the market value of the land. The legislation provides that each local authority will prepare and publish a map identifying land within the scope of the tax. These maps will be updated annually for changes in zoning and servicing of the land. Landowners will have an opportunity to submit an appeal against inclusion on the map to the local authority in the first instance, and subsequently to An Bord Pleanála where the local authority upholds their original decision.
A number of exclusions from the scope of the tax have been provided for, including existing habitable
dwellings and the curtilage, certain infrastructure or facilities, a site which is designated as a derelict site and liable for the Derelict Sites Levy, land zoned residential but used by a business to provide services consistent with a residential area, and land in an area zoned for a mixture of uses, where it is used for business purposes - in other words it is not deemed to be vacant or idle.
In relation to the Deputy's question regarding a timeline for the rollout of the measure, an owner who has land which was zoned and serviced on 1 January 2022, and who has not commenced development of the land before 1 February 2024, will be subject to a charge which will be due and payable in May 2024. Where the land is zoned or serviced after 1 January 2022, tax will be chargeable in the third year after it comes within scope.
The Residential Zoned Land Tax will operate on a self-assessment basis and will be administered by the Revenue Commissioner. The legislation requires landowners to maintain detailed records so that the Revenue Commissioner may verify tax payable as well as claims for exemption, abatement or deferral of the tax.
