Fine Gael, Co. Limerick councillor, Liam Galvin has said that Residential Zoned Land Tax (RZLT) is necessary in larger “more urban areas”, but that farmers “should not be penalised” by the tax.
He has called on the Department of Housing, Local Government and Heritage to change regulations around RZLT for farmers.
He said he understands that developments are not happening or are paused at the moment, due to “the cost of building”.
The RZLT will come into force from 2024. It is an annual tax that will be calculated at 3% of the market value of land “in scope” – which includes land zoned for residential development and land that could be connected to services.
The government previously said that it was introducing the new tax to “activate land for residential development throughout the country”.
Cllr. Galvin explained that there is some land which is categorised as “residential”, which “hasn’t a chance of being developed in the foreseeable future”.
He said knows of many cases like this in his own area in Abbeyfeale, Co. Limerick.
“Where a farmer is actively farming zoned land for residential, why should he be penalised? As a farmer myself, I can not stand over it.”
He described the tax as “completely unaffordable” and as “an extreme measure” for farmers to follow.
“It will not work, it cannot work and it’s unaffordable,” Cllr. Galvin said.
He explained that farmers should be given the option of de-zoning their land, or let it be zoned without penalty.
The councillor said he is working with local authorities in Co. Limerick to get a response from the government.
Cllr. Galvin wrote to the Minister for Housing, Local Government and Heritage Darragh O’Brien approximately three weeks ago about the issue.
He has asked for the tax to be reviewed and said he is awaiting a response on the matter.
Meanwhile, the Irish Farmers’ Association (IFA) called for immediate action by the government to resolve the RZLT issue for farmers.
The organisation said that the government must act to fix the issue “where genuinely farmed land is included in the Residential Zoned Land Tax”.