Residential Zoned Land Tax (RZLT) – What is it?
Residential Zoned Land Tax (RZLT) is a new tax aimed introduced as part of ‘Housing for All’ – the Government’s housing plan to increasing housing supply – by activating zoned, serviced residential development lands (including mixed-use lands). The annual rate of tax will apply from 2024 at 3% of the market value of the land. Tax will be levied on those who own land:
- zoned for residential or mixed-use (including residential) purposes in a local authority Development Plan, and
- serviced sufficiently or capable of being serviced sufficiently to support residential development, and
- are not excluded from the tax, as set out within the legislation
As of November 1st 2022, lands that will be subject to the RZLT have been identified by each local authority in their publication of Draft Residential Zoned Land Tax Maps. These can be found on each individual local authorities’ website. These maps are subject to current public review with the intention to be finalised in December 2023 with first tax applied in February 2024.
Exclusions & Exemptions from the RZLT
There are certain exemptions and exclusions from the RZLT based on for example; the circumstances of existing permitted uses; the physical condition of the property which may impact the ability to provide housing; availability of services; or, whether the property (or part thereof) is ‘vacant/idle’. However, the responsibility rests with the landowner to identity and rationale such exclusions/exemptions from the RZLT where their property has been identified on the draft RZLT map which was published on November 1st 2022.
The Process of removing land identified for RZLT
Upon review of the Draft Residential Zoned Land Tax maps, there is an opportunity to make submissions (and subsequent appeal) against the inclusion of private lands by each local authority on the RZLT map where it is believed that the land does not meet the criteria for inclusion. There is also provision for the landowner to apply for a change to the zoning of their land as part of this process, though such request will be the determination of the local authority (and as part of a formal review of the relevant Plan).
Contact HRA PLANNING if you are a landowner and require professional Town Planning assistance with the preparation of a submission to a local authority:
- demonstrating why your land on an RZLT map does not meet the criteria for being subject to the tax and should be excluded from the RZLT map;
- if you seek to request a change of zoning of your land so that it is not subject to the tax.
Closing date for submissions on the RZLT maps is 01 January 2023.