IFA high level overview of the residential zoned land tax.

1. Residential Zoned Land Tax
Meeting for IFA members
8th December 2022

2. Residential Zoned Land Tax – An overview
Shane Whelan, IFA Policy Executive

3. 3 Take-Away Messages
3
1. IFA will continue to campaign to get farmed land exempt from RZLT
2. Check if you are liable – look at the Local Authority Maps (offices/online)
3. Get your submissions in, if desired, by Jan 1st (& keep under review)

4. Residential Zoned Land Tax – what is it?
4
▪ 3% annual market value tax (self-assessed) - coming into force in 2024
▪ Introduced as part of Finance Act 2021, replacing Vacant Site Levy
▪ Administered by Revenue Commissioners
▪ To be liable, lands must, on/after 1st Jan ‘22 be:
✓ Zoned Residential, and;
✓ Serviced, and;
✓ Have service capacity, and;
✓ Be non-contaminated lands or sites of archaeological importance

5. Residential Zoned Land Tax – Exclusions
5
▪ Existing residential property and the gardens/yards usually enjoyed with it;
▪ Land zoned residential, but used by a business to provide services to residents of adjacent
residential areas (e.g. corner shop);
▪ Land zoned mixed use (incl. residential), where it is reasonable to consider the land is integral to the
operation of a business carried out on or beside it;
▪ Land used for certain infrastructure or facilities including utilities, transport and facilities for social,
community or recreational purposes;
▪ A derelict site subject to the Derelict Sites Levy; and,
▪ Land that is affected in terms of its physical condition or where historic or archaeological artifacts
are present.

6. 6
▪ Understand housing challenges & sentiment of RZLT, but strongly oppose inclusion of
farmed land that is an integral part of the farm business
▪ RZLT as currently stands is a poorly-designed, ill-targeted, disproportionate tax on farm
families, not in any way fair or equitable, requiring a full review
RZLT is simply a penal tax on farmers:
▪ No account of purpose / intent
▪ No account of commercial demand/housing need
▪ No direct engagement with landowners
▪ 3% market value is disproportionate to income yield potential
Take-away 1: IFA will continue to campaign
to get farmed land exempt from RZLT

7. 7
(Note: For indicative purposes only. Source: Teagasc National Farm Survey, 2022)
Take-away 1: IFA will continue to campaign
to get farmed land exempt from RZLT
Farm Income
per acre
(Av. ‘17-21)
(€)
Land valued at €25,000/acre Land valued at €50,000/acre
Annual tax
liability
(€)
Cost per acre of
Zoned land
(€/acre impacted)
Annual tax
liability
(€)
Cost per acre of
Zoned land
(€/acre impacted)
Dairy 519 750 -231 1,500 -981
Suckler Beef 121 750 -629 1,500 -1,379
Cattle Other 172 750 -578 1,500 -1,328
Sheep 146 750 -604 1,500 -1,354
Tillage 260 750 -490 1,500 -1,240
▪ 3% market value tax is disproportionate to income yield potential from farming
Example: Average-sized suckler farm with 7 acres of zoned land valued at €50,000/acre would pay
€10,500 annual RZLT liability. The entire annual farm income in 2021 was €10,865!!!

8. Take-away 1: IFA will continue to campaign
to get farmed land exempt from RZLT
8
IFA Activity to date:
✓ Meetings held with DoF & Revenue
✓ IFJ Land Market Report 2022
✓ Multiple submissions & engagement with Senior Government Officials - DoF, DPER, DAFM
✓ Submission to Commission on Taxation & Welfare
✓ Presentation Special Committee on Budgetary Oversight
✓ Press articles & radio interviews
✓ Letters to Cabinet & Minister of State
✓ Leaders Questions

9. Take-away 2: Check out the maps – are you liable?
9
https://housinggovie.maps.arcgis.com/apps/webappviewer/index.html?id=f65ed591a97d44898bbc5277859e1
4d7&extent=696995.9981000248,715573.5552996905,715206.850800058,736419.9003997209,2157

10. Take-away 2: Check out the maps – are you liable?
10
In Scope for
RZLT – options?
1. Do nothing, happy enough to pay tax
- Register for RZLT from late 2023. Charged on 1st Feb ‘24. Pay & Return by 23rd May 2024
- Interest (0.0219% per day), penalties & surcharges apply for undervaluation of lands subject to RZLT (up to 30% once undervalued
by 33%); and late filing of returns (% of annual return). Any unpaid = charge on land.
2. Challenge inclusion within scope of RZLT (submissions in by 1st Jan 2023)
- In writing to Local Authority
- Name & address; proof of ownership
- OSI maps identifying impacted lands
3. Seek to have Zoned status of land changed (submissions in by 1st Jan 2023)
- Evaluated by Local Authority, taking into account the proper planning and sustainable development of the area
Note: Existing dwelling properties may appear on Local Authority RZLT maps, but they are exempt from RZLT. However, if your curtilage (i.e. gardens, paths,
driveways, yards, garages or sheds used in conjunction with a house) is greater than 0.4047ha (1 acre) you do need to register for RZLT, but no tax is liable.
4. Seek a deferral in payment
- Residential development has commenced (not payable where completed within timeframe set out in planning permission)
- Development cannot commence due to an ongoing appeal against planning permission in respect of relevant site
- Impacted lands currently engaged in long-term lease pre 1st January 2022
- In process of appealing inclusion on Local Authority RZLT map

11. Take-away 3: Get submissions in by 1st Jan (& keep under review)
11

12. 3 Take-Away Messages
12
1. IFA will continue to campaign to get farmed land exempt from RZLT
2. Check if you are liable – look at the Local Authority Maps (offices/online)
3. Get your submissions in, if desired, by Jan 1st (& keep under review)

13. Residential Zoned Land Tax (RZLT)
Making A Submission on RZLT Draft Maps
Meeting with Irish Farmer’s Association
[08.12.2022]
w w w . h w p l a n n i n g . i e

14. 1. Are your lands zoned?
2. Are your lands serviced?
3. Are your lands unconstrained?
01
Submissions
RZLT
14

15. Making A Submission
▪ Submissions by 1st of January 2023
▪ Inclusion/Exclusion of Lands from Final RZLT Map
▪ Date of Which Land First Satisfied Criteria for Inclusion on Map
▪ Submissions can be made to Dezone Lands
Lands Deemed to meet criteria before 1st January 2022 – Liable in 2024
Lands Deemed to meet criteria after 1st January 2022 – Liable in 2025
02
Making A Submission
RZLT
15

16. Making A Dezoning Submission
▪ Submissions by 1st of January 2023 only.
▪ Dezoning submissions can not be made in subsequent Years of RZLT.
▪ Next Opportunity at next Development Plan Stage (5-6 Years)
▪ Will be assessed by Local Authorities on grounds of proper planning and sustainable
development
▪ Will require Variation of County Development Plan & Support of 50% of Elected
Members.
02
Making A Submission
RZLT
16

17. Criteria for Inclusion
▪ Zoned
▪ Serviced
▪ Unaffected in Terms of Physical Condition (archaeology, heritage, contamination)
Excludes Lands which
▪ Used by a business paying commercial rates
▪ Land required for social community or governmental infrastructure and facilities
▪ Education
▪ Healthcare
▪ Transport Facilities and Infrastructure
▪ Energy Infrastructure and Facilities
▪ Telecommunications
▪ Water and Waste Water
▪ Waste Management
▪ Waste Management
▪ Sports facilities, playgrounds, recreational facilities
▪ Derelict Sites, statutory designations precluding development
03
Criteria
RZLT
17

18. 04
RZLT Resource
RZLT
18

19. Tier 1 Lands
▪ Access to existing development
services
▪ Typically within existing built-up
footprint/adjacent to already
developed lands
05
A 2-Tier Approach
RZLT
19
Tier 2 Lands
▪ Not currently sufficiently serviced
▪ Potential to become fully serviced
within the lifetime of the Development
Plan
▪ Typically located within existing built-up
footprint/adjacent to Tier 1 Lands
Zoned Land

20. 06
What Constitutes Serviced Land?
RZLT
20
Lands are considered to be serviced:

21. Where land does not meet these criteria, Council’s will consider:
▪ If Planning Permission is granted are significant works required to enable the
permission which are outside the control of the applicant?
▪ Do the connections to services involve minor works, in which case the land may
be in scope?
▪ Do the connections to services require access to 3rd party lands or 3rd party
development to take place, in which case the land may be out of scope?
06
What Constitutes Serviced Land?
RZLT
21

22. ▪ Road Access - the Planning Authority must take into account the ease of access to existing road infrastructure by
the identified lands.
▪ Footpath Access - should be an ease of connection to an existing footpath network to facilitate active travel
modes from the outset.
▪ Foul Sewerage Drainage - the ease of connecting to the existing network should be a determining factor.
▪ Water Supply - Similar to determining lands serviced by the foul sewer network,
▪ Surface Water Drainage - Surface water drainage networks are generally in the control of Local Authorities. For
lands which do not have the benefit of planning permission, the ease of connecting to the existing network should
be a determining factor.
07
What Services are Considered?
RZLT
22
Infrastructure Assessment Categories:

23. Make Your Submission By
1st January 2023
23
What Now?
Local Authority Determination on
Submission By
1st April 2023
Successful Submission – Lands will be
removed from Supplemental Map
published 1st May 2023
Unsuccessful Submission –Appeal
Determination to An Bord Pleanála By
1st May 2023.
Appeal Decision By 21st August 2023.
Final RZLT Map published
1st December 2023

24. Thank You.
w w w . h w p l a n n I n g . i e

25. A legal view & key considerations in ‘subject to
planning’ partnerships
James Staines, Staines Law

26. Residential Zoned Land Tax
Q&A