Dáil Éireann Debate, Tuesday - 14 June 2022
386. Deputy Jackie Cahill asked the Minister for Finance if a property owner would still be liable for a vacant property tax in the case where they own land that is zoned for residential development but cannot secure a purchaser for the property; and if he will make a statement on the matter. [29592/22]
Amharc ar fhreagraAs the Deputy is aware, 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 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.
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.
If a landowner believes that their land should not be zoned as suitable for residential development, they can make a submission to the local authority seeking to have the land rezoned. The local authority will consider the submission and, if appropriate, they will 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.
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.
Where a site that is subject to RZLT is for sale, in the period until the sale is completed, the original owner is liable for the tax. Before the sale of a property is completed, the vendor is required to pay any unpaid RZLT due in respect of a liability date falling before the date of sale and to submit any outstanding returns.
