The Chief Executive. Mr. Shane Tiernan introduced the proposed Residential Land Zoned Tax that replaces the Vacant Site Levy and which will be collected by the Revenue Commissioners.

The onus is upon the landowner to register for tax, determine the market value of their land, file an annual tax return and pay the tax on a self-assessment basis, at a rate of 3% of the market value.

Acting Director of Services Greg O’Donnell gave a presentation to members on the aforementioned Residential Zoned Land Tax (RZLT) which forms part of the Government’s ‘Housing for All’ strategy targeting the provision of 33,000 new homes per year.

·         The aim of the tax was to encourage the activation of zoned and serviced residential development land for housing which would replace the Vacant Site Levy from 2024, announced in this year’s budget.

·         The schedule for the new tax would begin on November 1^st with the publication of the ‘draft map’ and public notices with a deadline of January 1^st next year (2023) for the acceptance of submissions. Arising from this, the assessment of submissions and amendments of the ‘Draft Map’ would take place in March 2023.

·         Determinations would be issued to landowners on their submissions by April 1^st next year. By May 1^st, a public notice and the display of a ‘Supplemental Map’ would be published with the final date for submissions fixed for June 1^st. On August 1^st, notification would be forwarded to affected landowners of determinations with the publication of a ‘final map’ by December 1^st 2023.

·         The final step will be the activation of the measure as a taxation by the Revenue Commissioners on 1^st January 2024

·         Under the guidelines published, local authorities are responsible for identifying ‘lands in scope’, through the preparation of three stages of maps and the undertaking of public consultation as well as the assessment of submissions.

·         Roscommon County Council would be engaged with the final confirmation of ‘lands in scope’, the annual review of the map and the publication of the revised final map by January 31^st each year.

·         Appeals can be made to An Bord Pleanala against the inclusion of land on the draft map, only after notification of any determination by the local authority. The landowner’s appeal is restricted to setting out whey the land does not meet the criteria with no cost to lodge an appeal. Landowners can also appeal against determinations on the annual review map by August 1^st each year after 2024 with An Bord Pleanala deciding annual appeals within sixteen weeks.

·         The determination of ‘lands in scope’ would be in respect of lands which are ‘appropriately zoned’, that is residential or mixed use, where residential zoning is ‘permitted in principle’ and served by roads, footpaths, lighting, foul sewer and surface water drainage and water supply. Exclusions from land in scope include if residential use is not ‘permitted in principle’, if land is contaminated, contains significant archaeological remains, on the derelict sites register or if used for infrastructure or community services. The onus is upon the landowner to register for tax, determine the market value of their land, file an annual tax return and pay the tax on a self-assessment basis, at a rate of 3% of the market value.

·         The onus is upon the landowner to register for tax, determine the market value of their land, file an annual tax return and pay the tax on a self-assessment basis, at a rate of 3% of the market value.

The Cathaoirleach thanked Mr. O’Donnell for his presentation and the Members discusses as follows:

·         How the value of the land determined - a number of landowners with lands located in town boundaries have no interest in having their lands rezoned.

·         This new tax is good in practice in towns and cities where lands are being held against development. However, this was different in Roscommon where no-one was in a position to develop land, where there would not be demand for housing.

·         Are lands being used for Agricultural use to receive an exemption and it is noted the onus was on landowners to make their own returns. This could result in requests to  the local authority to rezone lands. The Government should look at the scheme on a regional basis

·         Will the tax collected locally be returned to the county by Revenue?

·         There is an issue in the operation of the scheme whereby residents previously living in zoned rural areas who are now living in urban area such as Monksland. The levy would inhibit the construction industry locally and said it was likely legal challenges would ensue from the introduction of the tax.

·         The priority for the local authority is to acquire further land for housing development. There is a need to focus on lands where there is an appetite for development. The levy will put unsuspecting land owners at risk who should be communicated to directly through the relevant Local Area Plans.

·         The levy, though well-meaning was only relevant to big population centres. Can land scould be dezoned and avoid the levy, and if the local authority do an assessment, will An Bord Pleanala have the right to appeal? There should be an initial appeal process at Council level.

Responding to the Members concerns, Mr. O’Donnell said he understood the farmland exemption still remained. He said the issue of lands being viable was a valid issue and would be considered as part of the local area plans process. He said the new policy was a 6% tax being replaced by a 3% tax and said the local Area plan process could be undermined by local appeals, if the new tax was subject to such scrutiny. Monies collected by Revenue under the new regime would come back to the county, not in a direct but in an unidentifiable manner.

The Chief Executive said a lot of zoned land was based on the local authority’s Core Strategy which determines the development of Local Area Plans. He said the changing of zoning by a material contravention had to be on real and substantive grounds.