247. Deputy Edward Timmins asked the Tánaiste and Minister for Finance if he will review the unfair charging to local authorities of the RZLT; and if he will make a statement on the matter. [48301/26]

Finance Act 2021 introduced Part 22A Residential Zoned Land Tax (RZLT) into the Taxes Consolidation Act 1997. RZLT is designed to prompt residential development by owners of land that satisfies the relevant criteria for the tax, that being that the land is zoned for residential or mixed-use (including residential) purposes and that is serviced.

RZLT is an annual tax, calculated at a rate of 3% of the market value of the land within its scope. The tax is due and payable from 2025 onwards in respect of land which satisfied the relevant criteria on 1 January 2022, or in the course of 2022, as where land satisfies the relevant criteria after 1 January 2022, RZLT will be first due in the third year after the year in which it satisfies the relevant criteria. RZLT first arose on 1 February 2025 and the 2026 liability was payable by 23 May 2026, subject to certain exceptions.

The legislation underpinning RZLT provides for a number of exemptions, deferrals and abatements subject to the relevant criteria being met. The legislation does not provide for a specific exemption for local authorities. Local authorities that own land meeting the criteria for RZLT are subject to the tax. It is important to note that, to come within the scope of RZLT, land must be both zoned by the local authority for residential use and serviced. The intention of RZLT is to activate development of this residentially zoned and serviced land to meet critical housing needs.

As with all taxes, RZLT is under regular review by officials in my department and any changes would be considered as part of the annual Budget and Finance Bill cycle.