Pádraig O'Sullivan (Cork North Central, Fianna Fail)
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143. To ask the Minister for Housing, Planning, and Local Government if he will clarify if land zoned in recent development plans as residential reserve will be subject to the land value tax, or if he is considering exemptions to residential reserves; and if he will make a statement on the matter. [5561/23]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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The Residential Zoned Land Tax (RZLT) is a new tax introduced in Finance Act 2021 which seeks to increase housing supply by encouraging the activation of development on lands which are suitably zoned and appropriately serviced. It aims to bring those lands which have benefitted from investment in services and are capable of being developed forward for housing. The tax is an action contained in Housing for All, the Government’s plan for housing, to increase housing supply and is supported in the Programme for Government. My Department published section 28 Guidelines for Planning Authorities on the Residential Zoned Land Tax on 29 June 2022, which provided guidance on identifying the land which is in scope for the tax.

The tax applies to land that is:

- zoned suitable for residential development whether it be solely or primarily for residential use, or for a mixture of uses, including residential use, and

- serviced (that is: reasonable to consider may have access, or be connected, to public infrastructure and facilities, including roads and footpaths, public lighting, foul sewer drainage, surface water drainage and water supply, necessary for dwellings to be developed and with sufficient service capacity available for such development)

In order to be liable for the tax the land must meet both criteria.

As set out in the Finance Act 2021, the publication of maps to identify land in scope for the RZLT is the responsibility of the respective Local Authorities. All 31 local authorities published draft maps on 1 November 2022.

In identifying in-scope lands for the tax, the local authorities have identified the relevant zonings contained in their development plan, including land zoned as a strategic residential reserve. The local authority, in preparing the draft RZLT maps, determine whether the zoned land is connected or able to connect to the six required categories of services. Finally, any exclusions which would rule the land out of scope are applied. The local authority then publish a draft RZLT map identifying the land which meets the requirements of the legislation and which may be liable to the tax. The tax will first be due and payable in 2024.

A landowner with land identified on any published draft map has had the opportunity to make a submission to the local authority regarding the land, setting out why they consider that the land does not meet the criteria for inclusion within the scope of the tax. For example, if the land is not zoned for residential use, if the land does not have access to or there is no capacity for any of the six servicing criteria, or if the land benefits from an exclusion as outlined in the legislation. The local authority is required to assess any submission and inform the landowner of their decision to either remove or retain the land on the map by 1 April 2023. If dissatisfied with the local authority decision, the landowner may appeal the determination to An Bord Pleanála, again setting out why the land does not meet the criteria for inclusion for the tax.

In addition to being able to make a submission regarding inclusion of land on a draft map, the landowner may also submit a request to change the zoning of the land by variation of the adopted development plan. Where the zoning is amended to a use other than residential or mixed use including residential, it would not meet the criteria for the tax and would be removed from RZLT maps. Any zoning request needs to set out for the local authority the reasons for requesting a change of zoning. Decisions on whether to amend zonings as a result of submissions are a matter for the local authority, taking into account the need to ensure that housing supply targets across the county can be met.

As set out in the Finance Act 2021, any submission regarding the inclusion of land on the draft maps and/or request to amend zoning must have been made to the relevant local authorities by 1 January 2023.

It is acknowledged that the tax will impact on landowners, however if the land in question is zoned for a particular purpose under a plan adopted by the local authority and has been subject to investment by the local authority and the State in the services necessary to enable development for housing to accommodate increased population, it is intended that the land should be used for housing. This tax measure is a key pillar of the Government’s response to address the urgent need to increase housing supply in suitable locations.