I propose to take Questions Nos. 46 and 47 together.
The Residential Zoned Land Tax (RZLT) is a self-assessed annual tax, calculated at a rate of 3% of the market value of the land within its scope. I am advised by Revenue that if an owner fails to register and account for RZLT, or underpays the amount of RZLT due, Revenue may take enforcement action to collect the outstanding tax. Unpaid RZLT liabilities are subject to Revenue’s normal debt management procedures, which are administered by the Collector General’s Division. Any outstanding RZLT (including interest) may be referred to the sheriff, or a solicitor, for collection.
Where a deferral of RZLT applies, the deferred liability does not become payable until the deferral period has ended. In addition, the deferred amount may be subject to full or partial abatement in accordance with the relevant provisions.
Based on the information provided to Revenue through RZLT returns, the amount of unpaid RZLT liabilities that have not been deferred in respect of lands identified within the functional area of Fingal County Council for the years 2025 and 2026 is less than €150,000.
Accordingly, the majority of outstanding RZLT liabilities for those years relate to amounts for which a deferral has been granted, and which are not currently due for payment.
The tax aims to incentivise landowners to activate existing planning permissions for housing on land identified on maps published by Local Authorities as meeting this criterion, or to engage with planning authorities and seek planning permission in respect of such land. It is designed primarily as a behaviour changing measure rather than a revenue raising measure.
As outlined the tax has a number of deferments and exemptions built in and as relevant land gets activated the tax revenue will decrease. New land added to the RZLT maps has a period of time to activate for residential development and will not be subject to RZLT during that time period. If the revenue from RZLT was retained by local authorities to fund housing-enabling infrastructure, transport projects, community facilities and public services in individual local authorities, a reduction in the tax yield from RZLT could result in less revenue for such projects and therefore risk their viability.
As with all tax RZLT is kept under review by officials in my Department and any changes would be part of the annual Budget and Finance Bill cycle.
