Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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264. To ask the Minister for Finance the steps he will take in response to issues facing the Digital Hub Development Agency (details supplied); and if he will make a statement on the matter. [65740/25]

Simon Harris (Wicklow, Fine Gael)
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In response to the Deputy’s question, he should first note that while I have responsibility for the Residential Zoned Land Tax, my colleague the Minister for Housing Local Government and Heritage has responsibility for the vacant site levy. Therefore, my officials sought material for this reply on the latter issue from the Department of Housing Local Government and Heritage.

Firstly, I will cover the Residential Zoned Land Tax issue. 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 was first charged in 2025 in respect of land which satisfied the relevant criteria in 2022. The first RZLT liability arose on 1 February 2025 and was payable in May 2025, subject to certain exemptions and deferrals. The 2026 liability will arise on 1 February 2026 and is payable by 23 May 2026.

The legislation underpinning RZLT requires local authorities to consider whether land satisfies the relevant criteria for the tax, being that the land in question is zoned for residential use, serviced and not otherwise excluded from the relevant criteria, and to prepare and publish maps identifying land within the scope of the tax. These maps are updated annually for any changes in the zoning and servicing status of the land which has already been included on such maps, to reflect any additional land which falls within the scope of the tax and to exclude any land that has fallen outside the scope of the tax.

Draft revised maps are published by local authorities by 1 February each year and owners of land appearing on draft revised maps are provided with an opportunity to make submissions regarding whether their land satisfies the relevant criteria and the date from which it satisfied the criteria. If a local authority determines that land subject to such a submission does satisfy the relevant criteria for inclusion on the draft revised map, the legislation affords the landowner an opportunity to appeal the local authority determination to An Coimisiún Pleanála.

The tax is charged in respect of land included on revised maps published by local authorities by 31 January in the year after the publication of the draft revised maps, which reflect the outcome of the submissions and appeals processes. The Deputy should note that I have no influence over this process.

In relation to the vacant site levy the Minister for Housing Local Government and Heritage has advised that under Section 30 of the Planning and Development Act 2000, he is precluded from exercising any power or control in relation to any particular case with which a planning authority is or may be concerned.

He has further advised that under the vacant site levy provisions in the Urban Regeneration and Housing Act 2015 (the Act), planning authorities were empowered to apply a vacant site levy of 3% of the market valuation of relevant properties which were listed on local authority vacant site registers in 2018, which relevant owners were liable to pay in January 2019. The rate of the levy increased to 7% for sites listed on local authority vacant sites registers from 2019 onwards which site owners became liable to pay in January of the following year. Under Section 19 of the Act, unpaid levies due remain a charge on the land in question until they are paid and the Department of Housing, Local Government and Heritage (DHLGH) continues to engage with local authorities to ensure that all vacant site levies due are paid.

DHLGH requests annual progress reports from local authorities in respect of the Vacant Site Levy. The information provided annually by each local authority is as follows - the value of sites liable, the number and value of demand letters issued, the value and number of sites for which payments were collected, the value and number of sites for which payments are outstanding etc.

DHLGH recently issued Circular Letter SPI 02-2025 to local authorities requesting the submission of a further progress report on the implementation and collection of the levy in respect of the year 2024. It should be noted that local authorities do not provide a breakdown on individual properties and granular details on individual properties is a matter for the relevant local authority.

Finally, the Deputy should be aware that the Government is strongly committed to the use of vacant or underutilised state land for housing. In this regard the Minister for Housing Local Government and Heritage has advised there has been agreement to the transfer to date of 37 sites to the Land Development Agency (LDA) to develop social and affordable housing. The Digital Hub site, currently occupied by the Digital Hub Development Agency (DHDA) was agreed for transfer by Government under Housing for All. The LDA is currently at advanced planning stage on the initial enabling works application which will form the basis of the overall regeneration of this 3.7-hectare site, called Pear Tree Crossing. Approximately 570 homes are planned, and the site will also include a vibrant mix of commercial, cultural, and community facilities.

Agreement is in place between the DHDA and the LDA, and the process to effect the legal transfer of the site is currently underway.