In last month’s budget it was announced that landowners can avail of an exemption from the Residential Zoned Land Tax (RZLT) in 2025 if they seek to have their land rezoned to reflect the activity they carry out on their land.
The Finance Bill, also published last month, therefore includes amendments which provide for an opportunity for landowners to seek a change in 2025 to a zoning which reflects the economic activity they undertake on the land.
Announcing the budget, Minister Jack Chambers said the Minister for Housing, Local Government and Heritage will issue guidelines to local authorities, indicating that they should “consider and accommodate” such rezoning requests.
The Department of Housing, Local Government and Heritage (DHLGH) told Agriland it has communicated the legislative amendments and responsibilities of local authorities as a consequence of Finance Act 2024 to all local authorities.
“DHLGH will continue to engage with all local authorities on this matter, including in relation to rezoning requests received from landowners further to the publication of final maps by local authorities on January 31, 2025,” it said.
Local authorities will publish their annual final RZLT maps on January 31, 2025, identifying the land which will be liable to the new tax on February 1, 2025.
RZLT maps
The annual tax aimed at increasing housing supply by activating zoned, serviced residential development lands (including mixed-use lands) for housing, will apply from 2025 at a rate of 3% of the land’s market value.
The first liability date had been deferred until February 1, 2025, to allow another opportunity for interested parties to make submissions regarding land within the scope of the tax, and for landowners to submit rezoning requests.
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 lands which they propose to exclude from the previous year’s annual final maps for 2025.
RZLT maps are based on the zonings included within city/county development plans and local area plans. However, neither of those plans provide an indication of current land use, so whether or not it is in agricultural use.