736. Deputy John Connolly asked the Tánaiste and Minister for Finance the circumstances in which land is exempt from, excluded from, or eligible for relief or deferral in respect of the Residential Zoned Land Tax; to provide the relevant legislative references in each case; whether the Government is considering additional exemptions or amendments to the operation of the tax; and if he will make a statement on the matter. [60222/26]

764. Deputy Paul Lawless asked the Tánaiste and Minister for Finance if the Revenue Commissioners have issued guidance regarding the treatment of lands in active agricultural use that are subject to residential zoned land tax; and whether consideration will be given to publishing further guidance for farmers affected by the tax. [61911/26]

I propose to take Questions Nos. 736 and 764 together.

Finance Act 2021 introduced Part 22A Residential Zoned Land Tax (RZLT) into the Taxes Consolidation Act 1997 (TCA 1997). RZLT is designed to prompt residential development by owners of land that is zoned for residential or mixed-use (including residential) purposes and that is serviced and is not otherwise precluded from development, due to issues such as contamination.

RZLT is an annual tax, calculated at a rate of 3% of the market value of the land within its scope. The tax was first charged on 1 February 2025 in respect of land which satisfied the relevant criteria on or before 31 December 2022. Where land is zoned or serviced after 1 January 2022, the tax will be first due in the third year after the year in which it comes within scope.

Land which falls within the scope of RZLT is identified in maps prepared and published by local authorities. Section 653B TCA 1997 provides that certain land, while being zoned for residential use and serviced, is specifically excluded from the scope of the tax and is not included on RZLT maps. This includes:

• Land that is zoned for residential use or zoned for a mixture of uses, that includes residential use, but which is also subject to a written and mapped objective within a development plan or local area plan requiring that the land be developed on a phased basis, where, as a consequence of the application of such objective to the land, it is reasonable to consider that it is not available for development.

• Land that, while zoned for residential use, is an authorised development used to carry on a trade or profession by a business liable to pay commercial rates, and which provides services to residents of adjacent residential areas, such as a shop.

• Land that is zoned for a mixture of residential and other uses, where it is reasonable to consider the land is integral to the operation of a business carried out on or beside it and where it is an authorised development.

• Land that is required for, or occupied by, other uses such as social, community or governmental infrastructure, including education and healthcare facilities, facilities used for the purposes of public administration, transport facilities and infrastructure, utilities, energy or telecommunications infrastructure and facilities, water and wastewater infrastructure and facilities, waste management and disposal infrastructure and recreational infrastructure including sports facilities and playgrounds.

• Land that is subject to a statutory designation that may preclude development.

• Land in respect of which the derelict sites levy is payable in accordance with the Derelict Sites Act 1990.

Existing residential properties may appear on the maps prepared and published by local authorities, however, section 653O TCA 1997 provides that such properties are excluded from the charge to RZLT if they are liable to Local Property Tax. If the gardens and yards enjoyed with the residential property exceed 0.4047 hectares, the property is not liable to RZLT but the landowner is required to register for RZLT.

The objective of RZLT is to activate land for residential development. To this end, the legislation underpinning RZLT provides for the tax to be exempted, deferred or abated in certain circumstances, for example, where development has commenced and certain conditions are met.

Guidance on the treatment of land for the purposes of RZLT, including land in active agricultural use, can be found in Tax and Duty Manual Part 22A-01-01 Guidance on the Residential Zoned Land Tax at www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-22a/22a-01-04.pdf.

The Tax and Duty Manual provides detailed information on the operation of RZLT, including exemption, deferral and abatement provisions, together with the relevant legislative references. This guidance is kept under review and updated on a regular basis.