Residential Zoned Land Tax

The Residential Zoned Land Tax (RZLT), was introduced as part of Finance Bill 2021 to activate land for development to increase housing supply.

The tax imposes a 3% annual market value tax (self-assessed), on lands zoned suitable for residential development and serviced (must be both to be liable), and will be administered by the Revenue Commissioners, with significant penalties for non-compliance (Liability date is Feb 1st each year; return date 23rd May that year).

IFA strongly oppose the inclusion of land which currently forms an integral part of existing farm operations within the RZLT. Irish farm families are private land owners who utilise land for food production, often spanning multiple generations. They have not caused or influenced the current housing crisis. They are not building speculators or developers withholding land from residential development so should be exempt from the RZLT like they were for the Vacant Site Levy, the predecessor to the RZLT

Currently however, there is no exemption made for farmed land within the RZLT but, if applicable, you can challenge its inclusion to your Local Authority (by 1st Jan ’23) and/or make the case for rezoning impacted lands.

What Can You Do – Next Steps

  • Local Authorities will publish maps outlining lands liable to the RZLT from Nov 1st ’22. Visit your local authority offices to see the RZLT maps or check it out online to see if your lands are within scope of the tax. Note: Existing residential property may appear on Local Authority RZLT maps, but they are exempt. However, if your garden and yards are greater than 0.4047 hectares (1-acre), you will need to register for RZLT, but there is no RZLT payable.
  • If your land is liable for RZLT, you need to decide whether you are happy to pay the tax due (by May 23rd 2024 once registered) or you wish to challenge it. If the latter, a submission can be made (in writing) to the Local Authority (by 1st Jan ’23) against its inclusion for RZLT and/or you can seek to change the zoned status of the land. You can appeal to An Bord Pleanala if you do not get the desired outcome.Note: your submission must be in writing and include your name and address; proof of ownership; an Ordnance Survey Map at a scale your site/impacted lands can be accurately identified. Any additional information requested by Local Authorities must be provided within 21 days of being requested.
  • If your lands are zoned mixed use (including residential) you could seek an exemption from your Local Authority on the grounds that the land is not ‘vacant or idle’ and integral to the operation of the business carried out on it.
  • You could put a case forward that the lands are not serviced. To be liable for RZLT, lands must be connected to, or able to be connected to each of the following: road infrastructure; footpaths; public lighting; surface water; waste water and water supply. If not, they may be out of scope.
  • One final, but important thing to remember, is that the maps issued on Nov 1st ’22 are only draft maps. Updated or supplementary maps, based on submissions received, will be issued on May 1st ’23 before finalised maps are released on Dec 1st ’23. You need to keep an eye and review maps too to make sure you know where you stand re any potential liability to the RZLT. Revised final maps will be reviewed & published annually by Local Authorities.

Further information on Residential Zoned Land Tax can be found here.