The Office of Public Works (OPW) is seeking an exemption from an undeveloped land tax for its long derelict city centre site, which it plans to develop into a family court complex.
The waterlogged, triangular wedge of land along the Red Luas line in Smithfield, near the Four Courts, has been vacant for some 30 years.
Planning permission was granted two years ago by the Commissioners of Public Works for a six-storey building with 19 courtrooms. The Government announced in August 2024 that the project would be delivered by public-private partnership, with work to begin in 2026.
Last month, the Minister for Justice said the tender process closed in March and the project’s construction is expected to start next year.
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Dublin City Council included the one-acre site on its final map of lands it considered should be liable this year for residential zoned land tax (RZLT), which is levied at 3 per cent of a site’s value. The tax, introduced in an effort to encourage housing development, targets serviced lands zoned for residential use.
In a submission to the council, the OPW said its land should be rezoned as its current zoning permits residential development, which is “not reflective of the existing bona fide activity in the site”.
It asked the council to rezone, recognising that the objective of the site is “solely for a public amenity … with no plans for residential use”. The OPW said the property is in the final stages of transfer to the Courts Service to proceed with the courthouse development.
Landowners seeking an exemption from residential zoned land tax after being included on a council’s map of sites liable for the levy must by now have applied for a rezoning of their lands. RZLT returns must be filed with Revenue by May 23rd. Revenue says landowners will be notified by the end of June whether a council plans to amend their site’s zoning on foot of such a request.
Meanwhile, Dublin City Council last year paid more than €3 million in RZLT on residential sites it owns but has not yet developed.
It paid significantly more RZLT than any other local authority, with the 31 councils together paying about €11.6 million in 2025, according to Revenue.
Last year was the first year landowners were required to pay the tax, with some €49.2 million collected by Revenue, according to Minister for Finance Simon Harris. It is councils themselves that determine what residential, undeveloped lands should be hit with residential zoned land tax, save for final decisions by Revenue.
The council payments were highlighted in response to a parliamentary question from Social Democrats housing spokesman Rory Hearne.
Hearne said there is “no logic” to penalising local authorities. He said councils are “being pressured” by the Minister for Housing to zone more land for residential developments, raising further residential zoned land tax implications for them.
“There is a clear and immediate need to ramp up the direct delivery of housing by the State, as the private market is failing us all. And taking money out of the pocket of the local authority at this time makes no sense,” he said.
