Members of the public have until 1 January 2023 to check and make submissions on draft maps that show lands in Galway City which will be subject to the new Residential Zoned Land Tax.
The new tax is aimed at increasing housing supply by activating zoned, serviced residential development lands, including mixed-use lands.
Greenfield and brownfield land which is identified and is zoned for housing will be subject to tax from 2024.
Brendan McGrath, Chief Executive of Galway City Council, strongly urged people to assess the draft map published on the council’s website and make a submission before 1 January 2023 if needed.
“Galway City requires increased housing supply to meet our housing needs and the new tax aims to incentivise landowners to develop housing on serviced lands zoned for housing, both land with existing planning permission and land without.”
The Residential Zoned Land Tax is an annual tax, which will be first due in 2024 in respect of lands included on the final maps to be published by local authorities on 1 December 2023.
The Residential Zoned Land Tax will apply annually at a rate of 3% of the market value of the land. The tax will be administered on a self-assessed basis.
Homeowners will not have to pay the Residential Zoned Land Tax if they own a residential property which appears on the local authorities’ Residential Zoned Land Tax Maps, but which is subject to the Local Property Tax (LPT).
If a homeowner owns such a residential property, and the land/gardens/yards attached to it are greater than 0.4047 hectares, they will have to register for the Residential Zoned Land Tax with the Revenue Commissioners, but they will not be liable to pay the tax.
It will be possible to register for the tax from late 2023 onwards.
A homeowner may have to pay the tax if they own a residential property that appears on the local authorities’ Residential Zoned Land Tax maps that is not subject to the LPT.