The Department of Housing, Local Government and Heritage has published an infographic outlining the timeline and processes for the implementation of the Residential Zoned Land Tax (RZLT). The first phase commenced 1 November 2022 when local authorities published draft maps showing lands that will be subject to RZLT. Landowners and others have until 1 January 2023 to make a submission to their local authority regarding the inclusion/exclusion of their lands from the draft maps, or to request a change of zoning of land.
The RZLT will apply from 2024 to relevant land at a rate of 3 percent of market value. Considered by government to be an important component of the pathway to increasing new housing supply, contained in the Housing for All plan to 2030, the aim of the tax is to activate land for residential development rather than to raise revenue.
Welcoming the publication of the Draft Residential Zoned Land Tax Maps, Minister Donohoe said:
“This is an important step in the RZLT implementation process whereby land within scope of the tax has been identified by local authorities. Landowners whose land is included on a draft map should now review the map and consider if their land meets the criteria for inclusion and make submissions to their local authority accordingly. Residential properties, while they might be on the map, are not liable for the tax if they are subject to LPT.
In the course of 2023, supplemental and final maps will be prepared by local authorities identifying the land within scope; the final map will be revised annually from 2025 onwards.
Ireland requires increased housing supply to meet our housing needs. The RZLT aims to incentivise landowners to activate existing zoned and serviced residential development land for housing on identified lands and lead to the building of more homes.”
Further details are included in the Department of Finance press release.