Taxes Consolidation Act 1997 section 653AG

Sites developed wholly or partly for purpose other than residential development

Section 653AG sets out how residential zoned land tax (RZLT) applies where a site zoned for mixed use, including residential use, is developed wholly or partly for non-residential purposes.

• Where a commencement notice is lodged for non-residential development on a mixed-use zoned site, the non-residential portion ceases to be a relevant site from the date of the first commencement notice, provided substantial activity commences within the timeframe specified in the notice.
• Where development is part residential and part non-residential, the market value of the residential portion (the "liable part of the relevant site") is calculated using the formula A × (B/C), where A is the site's market value on the day before the first commencement notice was lodged, B is the gross floor space for dwellings, and C is the total gross floor space for the entire development.
• The site does not cease to be a relevant site if substantial non-residential development activity does not take place within a reasonable period after the first commencement notice; it remains within the charge to RZLT until substantial non-residential activity commences.
• The owner must declare to Revenue that this section applies within 30 days of the lodgement of the first commencement notice (or within 30 days of the site becoming a relevant site, if earlier) and must retain records to demonstrate compliance.