Dáil Éireann Debate, Wednesday - 9 October 2024
77. Deputy Pearse Doherty asked the Minister for Finance if a developer will be exempt from the residential zoned land tax if they are leasing the land for economic activity such as farming; and if he will make a statement on the matter. [40642/24]
View answerResidential Zoned Land Tax (RZLT) applies to land zoned for residential development, which also has the necessary services in place for the development of housing. The aim of this tax is to increase the supply of land for building. It will be charged at 3% of the market value of the land every year.
The tax will be due and payable from 2025 onwards in respect of land which fell within the scope of the tax on or before 1 January 2022, or which first became both zoned for residential use and serviced in the course of 2022, as where land is zoned or serviced after 1 January 2022, the tax will be first due in the third year after the year in which it comes within scope.
There are existing exemptions that apply to RZLT one such exemption applies to land that is within the scope of the tax but is subject to a contract that was entered into prior to 1 January 2022. The period of the relevant contract is deemed to be the period during which development is precluded under the terms of the contract.
For 2025, if landowners seek to have their land rezoned, in order to reflect economic activity they carry out on their land, an exemption to the Residential Zoned Land Tax will apply for one liability. The exemption and rezoning opportunity will be supported by guidelines issued by the Minister for Housing, Local Government and Heritage to local authorities. The guidelines will indicate that local authorities should consider and accommodate rezoning requests in situations where landowners seek to continue undertaking existing economic activity.
