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. The residential and mixed use including residential zonings are considered to reflect the housing need set out within the core strategy for the relevant local authority area. The measure does not relate to derelict sites, which are considered under the Derelict Sites Act.
Where the land is zoned for residential purposes and occupied by existing uses, such uses may be excluded from the tax where they provide services to the existing or future residential community; are authorised uses with regard to planning; are in use by a trade of profession; and are liable to commercial rates.
The mapping of lands considered liable to the tax is undertaken by each local authority based on the legislation contained in the Taxes Consolidation Act 1997, with the opportunity for landowners to make submissions to the local authority where they consider that their land should does not fall within the scope of the tax as set out within the legislation. Landowners who are not satisfied within the determination of the local authority have the opportunity to appeal to An Bord Pleanala. Landowners also had the opportunity to seek a rezoning of their land to remove it from scope. This variation procedure, and the local authority’s decision on whether or not to commence one, is part of the normal zoning process undertaken by the planning authority.
The zoning of land for particular purposes such as residential or mixed uses within a development plan is solely a matter for each local authority, including where there is a building on such land that is currently in industrial or commercial use. 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. 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.
It is acknowledged that the tax will impact on landowners, however if the land in question is zoned for a particular purpose under a plan adopted by the local authority and has been subject to investment by the local authority and the State in the services necessary to enable development for housing to accommodate increased population, it is intended that the land should be used for housing.
