Dáil Éireann Debate, Tuesday - 20 June 2023
242. Deputy Michael Ring asked the Minister for Finance the up-to-date position in relation to the residential zoned land tax; when it is expected that changes will be made to the tax; when the changes will be announced; and if he will make a statement on the matter. [29201/23]
Amharc ar fhreagraThe Residential Zoned Land Tax (RZLT) was introduced in Finance Act 2021. RZLT represents the output from Action 15.2 of the Housing for All Strategy published by the Department of Housing, Local Government and Heritage (D/HLGH) in September 2021 which announced the introduction of “a new tax to activate vacant land for residential purposes (to replace the current Vacant Site Levy)”. The Department of Finance (D/FIN) is supporting D/HLGH in delivering this action.
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 implementation of the measure may be broken down into two phases; an initial mapping phase to identify land within the scope of the tax, which is being undertaken by local authorities, and the administration of the tax, which is the responsibility of Revenue. The up-to-date position in respect of each phase is as follows:
Phase 1 – Mapping of Land in Scope
Land which falls within the scope of RZLT will be reflected in maps prepared and published by each of the 31 local authorities in the State, which will allow landowners to confirm whether their land is subject to the tax. A draft map was published by local authorities on 1 November last. Landowners and third parties had an opportunity to make submissions regarding the inclusion or exclusion of land on the maps up to 1 January 2023 – landowners also had an opportunity to request a variation of the current zoning of their land up to this date. Local authorities issued determinations in respect of submissions made on the draft maps by 1 April 2023; landowners dissatisfied with such determinations had until 1 May to make an appeal to An Bord Pleanála.
Where appropriate, local authorities prepared and published supplemental maps, reflecting land which falls within the scope of the tax, but which had not been included in the draft maps published on 1 November 2022. Such land may have been identified from submissions made on the draft maps or may otherwise have come to the attention of the local authority in the period since the publication of the draft maps. Supplemental maps were published by 16 of the 31 local authorities by 1 May 2023. Landowners and third parties had an opportunity to make submissions regarding the inclusion or exclusion of land on the maps up to 1 June – landowners also had an opportunity to request a variation of the current zoning of their land up to that date. Local authorities are required to issue determinations in respect of submissions made on the supplemental maps by 1 August next; landowners dissatisfied with such determinations have until 1 September 2023 to make an appeal to An Bord Pleanála.
A final map, reflecting land on both the draft and supplemental maps and any changes on foot of the submission, determination and appeal processes relevant to each of the earlier maps, as well as any changes in zoning, will be published by all local authorities by 1 December 2023. The final map will form the basis of the administration of the tax in 2024. From 2025 onwards, local authorities will update this final map on an annual basis.
Phase 2 – Administration of RZLT
The administration of the tax by Revenue will commence in 2024, with the initial liability date for the tax arising on 1 February 2024 with the first pay and file date following on 23 May 2024.
Officials in the Department of Finance and the Department of Housing, Local Government and Heritage continue to engage with construction and agriculture industry representatives with regard to consideration of their concerns about the residential zoned land tax.
