Eoin Ó Broin
Ceist:162. Deputy Eoin Ó Broin asked the Minister for Finance the estimated revenue yield from an increase in the zoned land tax from three percent to seven percent in a full year. [27983/22]
Amharc ar fhreagraTuesday, 31 May 2022
Ceisteanna (162)
Freagraí scríofa
The residential zoned land tax (RZLT) is designed to prompt residential development by owners of land that is zoned for residential or mixed use purposes and that is serviced, and the primary objective of a RZLT is to increase the supply of housing rather than to raise revenue.
The rate of residential zoned land tax is set at three percent on its commencement in 2024. I have chosen this rate as I believe great care needs to be taken to get the balance right between it achieving its essential purpose of encouraging the release of land for housebuilding purposes, but at the same time not being too penal, so that it runs the risk of being challenged in the courts.
In relation to the Deputy's question regarding the estimated revenue yield from an increase in the residential zoned land tax from three percent to seven percent in a full year, at this time it is not possible to estimate a projected yield increase as the mapping process by Local Authorities has not yet concluded .
In November this year the Local Authorities will publish the first draft of the zoned land maps, which will identify residential zoned land within scope of the tax. Following the publishing of the draft maps, there will be an appeals process whereby a person who believes their land does not justify inclusion within the tax can appeal to their Local Authority and An Bord Pleanála on the matter.
In December 2023 the Local Authorities will publish the final version of the residential zoned land maps. When the zoned land mapping process is concluded and the final maps are published, I will be in a better position to estimate the projected yield from land falling within the scope of the tax.