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.

Each local authority in the State was responsible for the preparation of an RZLT map for their functional area. Each local authority, in preparing the draft RZLT maps, determined whether the zoned land is connected or able to connect to the six required categories of services. Any exclusions which would rule the land out of scope were applied. The local authority then published a draft RZLT map identifying the land which meets the requirements of the legislation and which may be liable to the tax. A number of local authorities also published supplemental maps to reflect changes in zoning since January 2022. The tax will first be due and payable in 2024.

A landowner with land identified on any published draft or supplemental map had the opportunity to make a submission to the relevant 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. Each local authority was required to assess any submission and inform the landowner of their decision to either remove or retain the land on the map. If dissatisfied with the local authority decision, the landowner could have appealed the determination to An Bord Pleanála, again setting out why the land does not meet the criteria for inclusion for the tax. An Bord Pleanála have been issuing appeal decisions in recent months either confirming or overturning decisions to retain land on the maps. In certain instances, the local authority or An Bord Pleanála decisions on these submissions will remove land which was subject to a separate rezoning request from liability to the tax.

In addition to being able to make a submission regarding inclusion of land on a draft or supplemental map, the landowner had the opportunity to 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. Decisions on whether to amend zonings as a result of submissions or at any other time are a matter for each planning authority, taking into account the need to ensure that housing supply targets across the functional area can be met. It is also worth noting that provision is made in the Planning and Development Act 2000 for elected members to seek a report from their Chief Executive on the matter of proposed re-zonings at any time and in addition to the provisions of the RZLT legislation which permits rezoning requests. An Bord Pleanála have no role in deciding on zoning requests.

It is acknowledged that the tax will impact on landowners, however if the land in question is zoned for residential use 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, 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.

The issue of development potential of phased land which is identified in a statutory land use plan has been raised by a number of stakeholders and this matter is currently being examined in detail by my Department and the Department of Finance having regard to the need for a consistent approach to be applicable across the State.