Real Estate
PROPERTY TAX
Residential Zoned Land Tax: Publication of Supplemental Maps
A number of local authorities have published supplemental maps identifying additional lands, zoned residential or mixed-use, which may be subject to the residential zoned land tax (RZLT) of 3% of the market value of the land.
The deadline for submissions to local authorities on the supplemental RZLT maps is Thursday, 1 June 2023. Final maps will be published on 1 December 2023 and will be revised annually from 2025 onwards.
The liability date for RZLT is 1 February annually, commencing in 2024. The owner of the lands on the liability date must pay the tax on or before 23 May in the relevant year.
The Department of Housing’s RZLT web page incudes links to each local authority RZLT webpage. Further information on supplemental maps is available here.
Land Value Sharing Tax
The Land Value Sharing and Urban Development Zones Bill provides for a new Land Value Sharing (“LVS”) charge of 30% on the increase in value of land zoned for housing. A revised General Scheme of the Bill was published on 14 April 2023.
The main update of interest to landowners is that the legislation is intended to also apply to lands zoned commercial or industrial, or designated as a strategic development zone. The charge may arise not only when lands are first zoned as being in-scope, but also appears to be “refreshed” in each instance where lands are appropriately zoned in a new or revised local area or county development plan, or are designated as falling within a Strategic Development Zone or an Urban Development Zone.
The updated scheme confirms that the LVS tax will apply in addition to existing Part V and development levy costs.
The measure will come into effect for planning applications lodged from December 2024, with an additional 12-month lead-in period proposed in respect of lands transacted prior to 21 December 2021 (when the General Scheme was first published). Applications lodged in respect of lands acquired before this date will be liable for the LVS charge from December 2025.
Commercial and industrial zonings will fall into scope from March 2026, with planning applications lodged from December 2026 being required to pay the LVS tax. Further information is available here.
HOUSING
Housing for All
The Government agreed extra measures to deal with the housing crisis including:
- scrapping development levies to stimulate more building activity;
- higher grants to bring more vacant property back into use; and
- Government financing of the construction of affordable cost rental apartment schemes.
Further information is available here.