The amount of development land liable to the Residential Zoned Land Tax (RZLT) is likely to exceed 6,200ha, Minister for Housing, Local Government and Heritage, Darragh O’Brien has said.
Local authorities published annual draft RZLT maps on February 1, 2024, that identify lands that fall within the scope of the tax, as well as land which they propose to exclude from the previous year’s annual final maps for 2025.
Overall, circa 52,000ha of land is identified on the draft maps, while circa 49,300ha of land is proposed to be retained on the maps, Minister O’Brien said in response to a parliamentary question.
The minister noted that a “significant” amount of the overall land included on the maps is land that is zoned for existing residential development, and where a property is liable for Local Property Tax (LPT), the relevant land is not liable for the RZLT.
Independent TD for Galway West, Deputy Catherine Connolly had asked the minister the amount of land zoned under the RZLT and the amount of land being actively farmed if known, or if unknown, his plans to establish the amount of farmed land.
RZLT maps
The overall amount of land zoned for “new residential” development which will be subject to activation from the tax is estimated to be circa 6,200ha. However, this figure is based on estimates and “should not be considered an exact amount”, he said.
“This figure is based on estimates undertaken by assigning an overall general zoning category to a range of local authority ‘new residential’ zonings contained in the RZLT draft maps, and accordingly should not be considered an exact amount.
“Especially where a local authority has a wide range of residential zoning types or utilises a combined zoning type for existing and new residential development zoning,” Minister O’Brien said in response to Deputy Connolly.
Local authorities also identified “vacant and idle” “mixed use” zoned land which is in scope for the tax. In addition, lands zoned for “existing residential” identified on the RZLT draft maps may also provide opportunities for infill and other development, the minister said.
“Accordingly, the amount of development land liable to the tax is likely, subject to ongoing processes related to submissions and appeals, to exceed 6,200ha. Further clarity will be available when final maps are published on January, 31, 2025,” he said.
Farmland
Earlier this month, Minister for Finance, Jack Chambers said he is working on proposals to exclude active farmland from the RZLT, with the aim of bringing a “solution” to government party leaders before the budget on October 1.
The tax is set to apply from February 1, 2025, at a rate of 3% of the land’s market value and is aimed at increasing housing supply by activating zoned and serviced residential development lands (including mixed-use lands) for housing.
The Department of Housing, Local Government and Heritage, the Department of Agriculture, Food and the Marine, and the Department of Finance recently failed to confirm to Agriland the total amount of farmland currently zoned under the RZLT.
“The RZLT maps published by local authorities identify lands in scope for the tax, based on land use zonings included within city and county development plans.
“The maps are not broken down on the basis of ownership or existing land use such as farming, and accordingly it is not possible to ascertain the quantum of land that is in agricultural use.
“The measure applies broadly to all land zoned for residential development, with the existing use of such land not being a factor for consideration as to whether or not the land is in scope, as set out in the relevant legislation,” the minister said.