The Irish Farmers’ Association (IFA) has called for an extension to the submission deadline for the Residential Zoned Land Tax (RZLT).
The association raised the issue during a meeting last evening (Tuesday, December 13) with Minister for Agriculture, Food and the Marine, Charlie McConalogue.
IFA Farm Business Committee chair, Rose Mary McDonagh urged the government to immediately extend the deadline of January 1, for submissions.
She also said that impacted landowners must be directly engaged with on the matter.
Land tax
The new tax will apply to land zoned for residential use and serviced on, or before January 1, 2022.
The annual charge is due to come into force from 2024 and will be calculated at 3% of the market value of the relevant land.
The purpose of the government measure is to activate land for residential development throughout the country.
Local authorities across the country have published draft maps identifying land that is within the scope of the tax.
Landowners are being urged to check out their local authority maps to see if they are within the scope of the RZLT or not, and to prepare a submission before year end, if needed.
IFA
Rose Mary McDonagh said that the clock is ticking for farmers who may be impacted by the tax.
“With the Christmas break, there isn’t much time between now and January 1, to challenge your inclusion in the RZLT or change the zoned status of your lands.
“There is still a huge lack of awareness out there among landowners about this tax and the significant financial implications it may have. An extension of the deadline and direct engagement is essential,” she said.
“I had a farmer call me last week wondering about the tax. He only became aware of it when he was in his solicitor’s office looking to transfer part of the farm to his daughter.
“He didn’t even know the land was zoned. There are many more farmers in the same position.
“It’s incredible to think that local authorities aren’t required to make direct engagement with impacted land owners.
“It’s all well and good to say it has been publicised in the local paper and maps are in the local authority office, but if farmers don’t think it applies to them, they won’t do anything about it,” McDonagh added.
The IFA chair said that this “very penal tax” will force the sale of holdings if farmed land is not exempted.
She also claimed that there are huge inconsistencies across local authorities about what lands fall within the remit of the tax.
“These are the agents that farmers are now relying upon to ‘independently’ review and decide on their submissions.
“It’s imperative, in the interests of fairness, that there is complete clarity and no ambiguity on this. The financial implications are just too severe for farmers,” she said.