Brendan Griffin (Kerry, Fine Gael)
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165. To ask the Minister for Finance if lands that have received business tax relief for fixed terms will be exempted from the residential lands zoned tax; and if he will make a statement on the matter. [23731/24]

Michael McGrath (Cork South Central, Fianna Fail)
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Finance Act 2021 introduced Part 22A Residential Zoned Land Tax (RZLT) into the Taxes Consolidation Act 1997. RZLT is designed to prompt residential development by owners of land that is zoned for residential or mixed-use (including residential) purposes and that is serviced, and is not otherwise precluded from development, due to issues such as contamination, etc.

RZLT is an annual tax, calculated at a rate of 3% of the market value of the land within its scope. The tax will be due and payable from 2025 onwards in respect of land which fell within the scope of the tax on or before 1 January 2022. Where land is zoned or serviced after 1 January 2022, the tax will be first due in the third year after the year in which it comes within scope.

It is important to note that, to come within the scope of RZLT, land must be both zoned for residential use and serviced. Land that is zoned for residential use, but which is not currently serviced, is not within the scope of the tax and will only come within the scope of the tax should the land become serviced at some point in the future. Land will be considered to be serviced for the purposes of the tax where it is reasonable to consider that the land has access to, or may 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 on the land and with sufficient service capacity available for such development.

Land which falls within the scope of RZLT will be reflected in maps prepared and published by local authorities, which will allow landowners to confirm whether their land is subject to the tax. Certain land, while being zoned for residential use and serviced, is specifically excluded from the scope of the tax and will not be included on RZLT maps. This includes:

• Land that is zoned for residential use or zoned for a mixture of uses, that includes residential use, but which is also subject to a written and mapped objective within a development plan or local area plan requiring that the land be developed on a phased basis, where, as a consequence of the application of such objective to the land, it is reasonable to consider that it is not available for development.
• Land that, while zoned for residential use, is an authorised development used to carry on a trade or profession by a business liable to pay commercial rates, and which provides services to residents of adjacent residential areas, such as a shop.
• Land that is zoned for a mixture of residential and other uses, where it is reasonable to consider the land is integral to the operation of a business carried out on or beside it and where it is an authorised development.
• Land that is required for, or occupied by, other uses such as social, community or governmental infrastructure, including education and healthcare facilities, facilities used for the purposes of public administration, transport facilities and infrastructure, utilities, energy or telecommunications infrastructure and facilities, water and wastewater infrastructure and facilities, waste management and disposal infrastructure and recreational infrastructure including sports facilities and playgrounds.
• Land that is subject to a statutory designation that may preclude development.
• Land in respect of which the derelict sites levy is payable in accordance with the Derelict Sites Act 1990.

• Existing residential properties that are liable for Local Property Tax, and
• Land that is subject to a contract, which was entered into before 1 January 2022, that precludes the landowner from developing it.