Confusion reigns in Tipperary over new Residential Zoned Land Tax

Tipperary councillors have raised concerns about the approaching deadline for submissions on the Residential Zoned Land Tax (RZLT).

Nenagh Municipal District councillor Michael O’Meara first raised the issue at this week’s sitting of the full council.

He said landowners were ‘exceptionally worried’ and see the RZLT as a poll tax.

Cllr O’Meara also said he was worried people didn’t know about the approaching deadline, and he only came across it accidentally.

Several councillors north and south of the county supported Cllr O’Meara but also condemned the introduction of the tax on small landowners.

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Cllr Joe Hannigan said the tax was unfair and there had been no consultation process.

He said in some cases planning permission is granted only for developers to be told by Irish Water they could no develop because of capacity issues. He called for a meeting with Irish Water.

“It’s high time we sat down with Irish Water,” said Cllr Hannigan.

Clonmel Cllr John Fitzgerald called the RZLT a ‘window dressing tax’ and said it was not well thought out.

Nenagh councillor Rocky McGrath said it was a worry “in a big way.”

TWENTY AREAS

The new Director of Services for Planning, Stephane Ducolt, said the tax would only apply to 20 areas of the 120 settlements and towns in Tipperary.

Only land zoned for residential development or adjacent to a town is liable.

He advises the public that if they have concerns about their own land, they should consult the draft maps on the council websites or in council offices.

According to the Tipperary County Council Management Report for December, maps are based on local authority development plans and local authority zoning maps.

The purpose of the new tax is to activate land for residential use and will replace the Vacant Site Levy in time.

Mr Ducolt said the public has until January 1 to make a submission. After which the council will issue a report to An Bord Pleanala.
He also said as this is a national plan, the council has no control over the dates.

The tax comes into effect from February 2024.

THREE KEY MESSAGES

Tipperary County Council Chief Executive Joe MacGrath said there are three key messages from the discussion.

The first is that the majority of landowners will be unaffected. Maps are available, and those concerned should consult them to determine if their land is affected.

And if the public has concerns, they should make a submission before January 1, 2023.

He also said that in a housing crisis, it is unacceptable for developers to hold on to zoned land until the market gets better. He said if they choose to, they should be taxed.

REVENUE.ie

The Residential Zoned Land Tax is a new tax to be introduced in 2024

According to Revenue.ie land will be subject to RZLT if it was zoned for residential use and serviced on or before January 1 2022.

Applicable landowners will need to file a return and pay any RZLT due for 2024 by May 23, 2024.

The tax is 3% of the land's value.

Land subject to Local Property tax is not subject to RZLT.

However, landowners will need to register for RZLT if their garden or yard is greater than 0.4047 hectares (one acre), but no payment needs be made.