Tesco loses appeal over new tax zoning proposed for its site in Kilkenny

Tesco Ireland's recent appeal against the lands they possess at the old mart site in Kilkenny being designated as liable for the new 'Residential Zoned Land Tax' has been unsuccessful.

An Bord Pleanála have agreed with Kilkenny County Council's designation of the land as meeting the criteria for Residential Zoned Land Tax liability.

The primary grounds of the appeal was that the site is zoned 'general business', subject to a masterplan and that in the absence of a masterplan, it is not certain as to what services need to be provided on the site, making the decision to include the site on the maps as premature.

In their final decision report, the national planning body stated that 'the site zoning allows for the development of housing on the land and the lack of a masterplan is not a reason for the exclusion of these lands from the Residential Zoned Land Tax maps'.

The report goes on to state that 'it can be reasonably expected that there are available services in the area that would allow for the development of these lands for residential purposes'.

"The site therefore satisfies the criterion for inclusion on the map set out in section 653B(c) of the Taxes Consolidation Act 1997, as amended," the report concludes.

What is Residential Zoned Land Tax?

Residential Zoned Land Tax is a new annual tax and is calculated at 3% of the market value of land within its scope. It will apply from 2024 onwards.

The tax is aimed at increasing housing supply by activating zoned, serviced residential development lands (including mixed-use lands) for housing.

It also aims to incentivise landowners to use existing planning permissions for housing. The tax is being introduced as part of Housing for All, the government's housing plan to 2030.

Each local authority was recently tasked with preparing and publishing a map identifying land within the scope of RZLT.

The first draft maps were published by local authorities in November of 2022 and supplemental and final maps were published earlier this year.

Landowners unhappy with the local authority determination could subsequently appeal the decision to An Bord Pleanála.