I propose to take Questions Nos. 190 to 192, inclusive, together.
The Finance Act 2021 introduced Part, 22A Residential Zoned Land Tax (RZLT), into the Taxes Consolidation Act 1997. The RZLT is designed to prompt residential development by landowners of land that is zoned for residential or mixed-use (including residential) purposes and that is serviced.
RZLT is an annual tax, calculated at a rate of 3% of the market value of the land within its scope. The tax will be due and payable from 2024 onwards in respect of land which fell within the scope of the tax on or before 1 January 2022. Where land is zoned or serviced after 1 January 2022, the tax will be first due in the third year after the year in which it comes within scope.
Land will be considered to be serviced for the purposes of the tax where it is reasonable to consider that the land has access to, or may be connected to, public infrastructure and facilities, including roads and footpaths, public lighting, foul sewer drainage, surface water drainage and water supply, necessary for dwellings to be developed on the land and with sufficient service capacity available for such development.
Land in industrial use which is zoned solely or primarily for residential use meets the criteria set out within the legislation and therefore falls within the scope of the tax. These zonings are considered to reflect the housing need set out within the core strategy for the relevant local authority area and landowners within such zonings may fall within the scope of the tax, in the interests of ensuring an appropriate supply of housing on zoned lands.
A draft RZLT map was published by local authorities on 1 November 2022. The purpose of the draft map was to allow landowners, including owners of land in industrial use, to see if their land is within the scope of the tax. If a landowner saw that their land is included on the draft map and believes that it should not be, they had the opportunity to make a submission to the local authority by 1 January 2023 seeking to have the map updated and their land removed from the map, or they could have sought to have their land rezoned.
Local authorities considered the submissions received and made written determinations on whether the land should stay on the map or be removed from it. If the landowner disagreed with the determination they had the opportunity to appeal to An Bord Pleanála. If a landowner requested a rezoning of their land, the local authority would consider the request and, if appropriate, they would commence a variation procedure to alter the zoning of the land. This variation procedure, and the local authority’s decision on whether or not to commence one, is part of the normal zoning process.
In relation to the specific query regarding a residential zoning of a building in industrial use, I have been informed by the Department of Housing, Local Government and Heritage that zoning of land for particular purposes such as residential, mixed use, amenity, commercial/industrial or other uses within a development plan is solely a matter for each local authority.
Decisions on whether to amend zonings as a result of submissions made under Section 653I of the Taxes Consolidation Act 1997 or at any other time in order to remove land from the scope of the tax are a matter for each relevant local authority, taking into account the need to ensure that housing supply targets across the city or county can be met.
In relation to the specific query regarding the number of companies operating that have appealed against a designation of being potentially liable to the RZLT charge, I am informed by the Department of Housing, Local Government and Heritage that the total number of appeals received by An Bord Pleanála in this regard is 627. It should be noted that this includes appeals by developers, farmers, businesses, homeowners and other landowners.
I am further informed by the Department of Housing, Local Government and Heritage that provision is made in the Planning and Development Act 2000 for elected members to request the Chief Executive, in certain circumstances, to commence a process to amend a development plan zoning.
