Dáil Éireann Debate, Thursday - 7 April 2022
237. Deputy Joe Carey asked the Minister for Finance when the zoned land tax will be in place; and if land that is zoned for low-density development as opposed to high-density development will be subject to taxation of 3%. [18907/22]
Amharc ar fhreagraFinance 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 owners of land that is zoned for residential or mixed-use purposes and that is serviced.
The RZLT is an annual tax, calculated at a rate of 3% of the market value of the land. It applies to land that is both zoned as suitable for residential development and is serviced, regardless of whether it is zoned for high-density or low-density development.
Each local authority will prepare and publish a map identifying land within the scope of the tax. The first draft map will be published by the local authorities on 1 November 2022.
The tax will be due and payable in May 2024 in respect of land which was suitable for residential development on 1 January 2022 because it was both zoned and serviced on that date, and on which development has not commenced before 1 February 2024. Where land becomes both zoned and serviced after 1 January 2022, tax will be chargeable in the third year after it comes within the scope of the tax.
There are a limited number of exclusions from the tax, including residential dwellings and their gardens and land which is zoned for a mixture of residential and other uses (and not purely for residential development) that is integral to the operation of a business carried out on or beside it.
The tax may be deferred in certain circumstances, including where residential development is commenced. Tax deferred while residential development is ongoing, will, on the making of a claim, not be payable where development is completed within the timeframe set out in the planning permission and a certificate of completion is in place.
