Dáil Éireann Debate, Tuesday - 25 July 2023
298. Deputy Alan Farrell asked the Minister for Finance if exemptions to the residential zoned land tax will be considered where commencement of construction is delayed due to planning matters; and if he will make a statement on the matter. [36046/23]
View answerThe residential zoned land tax (RZLT) was included as a part of the Finance Act 2021. It represents the delivery of a commitment under Housing Policy Objective 15.2 of Housing for All, to introduce a new tax to activate land for residential purposes.
The tax measure, which will be levied at 3% of the market value of the zoned land, is intended to encourage activation of lands which are suitably zoned and which have benefited from investment in services to support housing but which remain undeveloped.
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.
Activation of planning permissions on greenfield and brownfield regeneration lands is a key aim of Housing for All, and will have the consequence of increasing supply, and broadening tenures.
It is worth pointing out that a number of deferrals from the tax were provided for in the legislation relating to planning matters. These include deferrals in circumstances where a commencement notice has been lodged in relation to land following the grant of planning permission and deferrals in relation to appeals and judicial reviews regarding draft and supplemental maps.
Furthermore, provision exists for a refund of the tax where, following publication of a final map, it is subsequently determined that development could not take place on a site due to issues regarding its physical condition.
