This is the detail:
As part of Housing for All, I will be introducing a Zoned Land Tax to encourage the use of land for building homes. The primary objective of the measure is to increase the supply of residential accommodation, rather than to raise revenue.
The tax will apply to land which is zoned suitable for residential development and is serviced, but has not been developed for housing. It will therefore target land in areas which are zoned residential or which are zoned for a mix of uses, including residential. I am not proposing to have any minimum size exclusion as I see the potential for the tax to incentivise the development of small sites in town centres.
In order to identify zoned land within the scope of the tax, maps will be prepared and published by Local Authorities in advance of the commencement of the measure. These maps will be updated on an annual basis.
The Minister for Housing has indicated that there will be a process established to enable any person to apply to their Local Authority to have the zoning status of their land amended.
This process will be aligned with normal local authority procedures, and each case will be considered on its merits in the context of proper planning and sustainable development.
An appropriate lead-in time for the general application of the Zoned Land Tax will be required following its introduction in the Finance Bill 2021. I am proposing a two-year lead-in time for land zoned before January 2022, and a three-year lead in time for land zoned after January 2022. This will also give scope to review the workings of the tax, to listen to stakeholders, and ensure it is both effective and equitable.
The tax will be based on the market value of the land and I have determined that the rate at the outset should be 3 per cent. This aligns with the starting point for the vacant site levy when it was first introduced.
I believe the introduction of this tax is a very important step forward in encouraging the release of land for building homes. Depending on its impact, I will be open to reviewing the rate in the future.
There will be a number of exclusions from the tax such as dwelling houses and their gardens, amenities and infrastructure. Other exemptions will be defined in the Finance Bill.
The tax will operate on a self-assessment basis and will be administered by the Revenue Commissioners.
Finally, it is worth noting that this tax will replace the vacant site levy when it comes into operation.
