Catherine Ardagh (Dublin South Central, Fianna Fail)
Link to this: Individually | In context

208. To ask the Minister for Finance if he will review the requirement for State agencies and public bodies to pay residential zoned land tax, in light of concerns that the imposition of these tariffs on publicly owned lands, particularly those designated for long-term or strategic community and public service use, is having an adverse impact on the financial capacity of those agencies to deliver core services; if he will outline whether exemptions or revised criteria are being considered to prevent unintended consequences that undermine public service delivery or long-term land management strategies; and if he will make a statement on the matter. [25050/25]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context

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 satisfies the relevant criteria for the tax, that being that the land is zoned for residential or mixed-use (including residential) purposes and that is serviced.

RZLT is an annual tax, calculated at a rate of 3% of the market value of the land within its scope. The tax is due and payable from 2025 onwards in respect of land which satisfied the relevant criteria on 1 January 2022, or in the course of 2022, as where land satisfies the relevant criteria after 1 January 2022, RZLT will be first due in the third year after the year in which it satisfies the relevant criteria. RZLT first arose on 1 February 2025 and the 2025 liability is payable by 23 May 2025, subject to certain exceptions.

The legislation underpinning RZLT provides for a number of exemptions, deferrals and abatements subject to the relevant criteria being met. The legislation does not provide for a specific exemption for State agencies and public bodies. State agencies and public bodies that own land meeting the criteria for RZLT are subject to the tax. It is important to note that, to come within the scope of RZLT, land must be both zoned by the Local Authority for residential use and serviced. The intention of RZLT is to activate development of this residentially zoned and serviced land to meet critical housing needs.

As with all taxes, RZLT is under regular review by officials in my department and any changes would be considered as part of the annual Budget and Finance Bill cycle.