RESIDENTIAL ZONED LAND TAX (RZLT)
Act before 1 January 2023

What type of land does it apply to?

• It applies to land which on or after 1 January 2022 is zoned as being suitable solely or primarily for residential use (and serviced for development as such).
• Where agricultural land meets the above criteria, owners of agricultural land will be liable for RZLT.
• Existing residential properties may appear on zoned land maps as published by each local authority but they are excluded from the scope of RZLT
• Owners of residential property on lands of more than 0.4047 hectares (one acre) and who are liable to Local Property Tax are not within the charge to RZLT but are required to register if their property appears on a final residential zoned land map from the local authority. Final maps due to be published 1 December 2023.

What types of properties are excluded from RZLT?

• Residential dwellings and gardens
• Facilities for utilities, social, community or recreational purposes
• Land which has a physical condition which may impact the ability to provide housing on the land
• Land designated as a Derelict Site
• Land which although zoned residential is a rateable business and provides services to local residents e.g a neighbourhood shop
• Mixed use land – only vacant or idle land is included within the scope of RZLT.

What is the rate of RZLT?

RZLT will apply annually at a rate of 3% of the market value of the land. The land will be revalued every 3 years from the initial valuation date. This is a self-assessment tax so like Local Property Tax the property owner determines the market value. Surcharges may apply if the land is later found to be undervalued. RZLT is administered by Revenue Commissioners and not the local authority.

Note Vacant Site Levy continues to apply (note this is at a rate of 7% of market value) but it will be replaced with RZLT in due course. Any unpaid Vacant Site Levy remains a charge on the property to be collected by the local authority.

When will a landowner be first liable to pay RZLT?

• Due 1 February 2024 and payable in May 2024 for applicable land as of January 2022.
• Where land becomes zoned and serviced in subsequent years then RZLT will be chargeable in the third year after the year in which it comes within scope of RZLT.
• Where land liable to RZLT is under appeal to An Bord Pleanala, RZLT may be deferred pending the outcome of an appeal. This only applies where the land is subject to a third party appeal. If the appeal overturns the grant of planning permission then any deferred tax is due for payment.
• Where land subject to an appeal is sold prior to outcome of the appeal, the landowner must pay any tax which has been deferred prior to the completion of the sale.

What steps need to be taken now by landowners?

• Review residential zoned land maps on local authority websites to check if your land has been designated as within scope of RZLT.
• On or prior to 1 January 2023, you must make submissions to your local authority regarding removal of land from the RZLT maps if you believe the land to be outside the scope of the tax.
• Note – submissions may also be made seeking that a third party’s land is considered within the scope of RZLT.
• If you own a residential property on lands of more than 0.4047ha (1 acre) and the property has been designated for RZLT then there is an obligation to register with Revenue Commissioners notwithstanding that the property is exempt from RZLT. This is applicable once final maps issue (late 2023).

If the local authority reject a submission requesting removal from a map, is there a right of appeal?

• On 1 April 2023 the local authorities will write to landowners notifying them of removal or retention from the RZLT maps.
• A landowner may appeal the decision to An Bord Pleanala on or prior to 1 May 2023.
• There is a further round of submissions/notifications/right of appeal for properties included in supplemental maps published in May 2023.

Making a submission

• To be made in writing by post and/or email giving certain prescribed details
• An Ordnance Survey map is required.
• Proof of title is required.
• Local authority may seek further information regarding the services to the property from Irish Water and/or the National Roads Authority.
• Note also a submission may be made regarding the zoning of the land seeking that the zoning status of the land be reconsidered. This may be important in the case of agricultural land which has been zoned residential.
• Submissions made will be published on the local authority website by 11 January 2023.

When does RZLT cease to apply?

• When homes are developed on site and completed; or
• Where land zone for mixed use – when a non residential development commences construction; or
• Where the zoning is changed such that it is no longer suitable for residential development; or
• Where after publication of final map – the land becomes unsuitable for residential development – e.g. archaeological remains found on excavation of the site.

If you need any assistance in making a submission in respect of your land, please contact rbennett@reddycharlton.ie or your usual Reddy Charlton property team contact.