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.
The aim of the tax is to ensure that zoned serviced land which is ready to deliver housing is activated and the process of seeking, gaining and activating planning permissions is encouraged. The RZLT is a part of the process of ensuring that zoned serviced land is used in an effective and timely manner. The aim of the tax is not to raise significant revenue.
A draft RZLT map was published by local authorities on 1 November 2022. The purpose of the draft map was to allow landowners to see if their land is within the scope of the tax. If a landowner had seen 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 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. If the landowner disagrees with the determination, they can appeal to An Bord Pleanála. Local authorities will publish a final residential zoned land map in December 2023.
The rate of 3% was set to achieve a balance between achieving the measure's essential purpose of encouraging the release of land for housebuilding purposes, but at the same time not being too penal.
In relation to the Deputy's question regarding the estimated revenue yield from an increase in the residential zoned land tax from 3% to 25% in a full year, where the levy will also be imposed if the planning permission is not commenced within 12 months of its granting or where the development is not completed within 36 months of the planning permission being granted, at this time it is not possible to estimate a projected yield increase as the mapping process by local authorities has not yet concluded.
