Revenue eBrief No. 148/22
19 July 2022
Guidance on the Residential Zoned Land Tax – Part 22A TCA 1997
Revenue has published a new Tax and Duty Manual Part 22A-01-01 – Guidance on the Residential Zoned Land Tax – Part 22A TCA 1997.
The Residential Zoned Land Tax (RZLT) is an annual tax, calculated at 3% of the market value of land within its scope. The tax applies to land that, on or after 1 January 2022, is zoned as being suitable for residential development and is serviced, with certain exclusions. It does not apply to existing residential properties; however, owners of residential properties with yards and gardens greater than 0.4047 hectares will need to register for, but not pay, RZLT.
The legislation requires each local authority to prepare and publish a map identifying land within the scope of the tax. These maps will be updated annually for changes in the zoning and servicing status of land.
An owner of land which was zoned as suitable for residential development and serviced on 1 January 2022, and on which development has not commenced before 1 February 2024, will be liable to file a return and pay RZLT due in respect of such land on or before 23 May 2024. Where the land is zoned as suitable for residential development and/or serviced after 1 January 2022, tax will be first due in the third year after it comes within scope. The tax will continue to be payable each year in respect of the land unless a deferral of the tax applies or the land ceases to be liable to the tax.
In cases of non-compliance, including undervaluation of the land in scope and late filing of returns, interest, penalties and surcharges will apply as appropriate.