First of many expected cases against tax to reduce 'land hoarding' comes to High Court

The Residential Zone Land Tax is an annual 3% charge on the land's market value, which was introduced by the Government in Budget 2022 on lands zoned residential

In its proceedings, the plaintiff has asked the High Court for various orders and declarations including an order quashing the board's decision to include the lands in the local authority's map of lands to which the RZLT applies. File Picture: Billy Higgins

A landowner has brought a High Court challenge against An Bord Pleanála's decision confirming that lands in North County Dublin are amenable to the controversial Residential Zone Land Tax (RZLT).

The RZLT is an annual 3% charge on the land's market value, which was introduced by the Government in Budget 2022 on lands zoned residential. It is aimed at increasing housing supply and reducing so-called "land hoarding".

The measure has been strongly criticised by both developers and farming bodies.

In what is expected to be the first of many actions brought against the tax, Co. Meath-based MCPS investments Homes Ltd has challenged An Board Pleanála's confirmation that the plaintiff's lands at Ratoath Road, Hollystown, Dublin 15, be included in a map of lands were the RZLT applies.

The map was originally complied by Fingal County Council. MCPS appealed the inclusion of the lands, approximately 7.5 acres in size, to the board.

In High Court judicial review proceedings against An Board Pleanála, MCPS says that the board's decision is flawed and based on a manifestly incorrect premise. This, the plaintiff claims, is because the lands are not serviced to the level that would allow for their inclusion in the council's map.

Represented by Jarlath Ryan Bl and instructed by RMC solicitors, MCPS says that the lands in question are not linked to any sewers. The board's decision last June to include the lands on the map, it is also argued, is contrary to fair procedures and natural justice.

In its proceedings, the plaintiff has asked the High Court for various orders and declarations including an order quashing the board's decision to include the lands in the local authority's map of lands to which the RZLT applies.

MCPS also seeks a declaration from the court deeming the board's decision invalid, contrary to law, and that the matter be remitted back to the board for a fresh reconsideration of the facts.

Permission to bring the challenge was granted on an ex-parte basis by Ms Justice Emily Farrell. The judge adjourned the case to a date in November.