Farmers and landowners have been warned that they only have until January 1, 2023 to check with local authorities about whether they will be liable for a new Residential Zoned Land Tax (RZLT).
The RZLT, which will come into force from 2024, 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.
There is no exemption included in the RZLT for lands that are farmed but which also fall into both these categories.
But certain properties will be exempt from the tax such as existing residential properties which are liable for Local Property Tax (LPT).
The government has said it is introducing the new tax to “activate land for residential development throughout the country”.
The Minister for Housing, Local Government and Heritage, Darragh O’Brien, has said the government wants to “see more suitable land which is serviced and available for housing unlocked for the delivery of homes”.
“It’s estimated that only one-sixth of residential zoned land is activated for housing during a local authority’s six-year development plan.
“We need to increase housing supply and to do this we need to ensure that land which has benefited from appropriate zoning and servicing and has gained planning permission is developed quickly in all counties and settlements in the state.
“We also need to encourage owners of zoned and serviced land which does not have planning permission to actively engage with planning authorities with a view to applying for permission,” Minister O’Brien added.
Draft Residential Zoned Land Tax maps
Draft RZLT maps have now been drawn up by local authorities as part of the implementation of the new tax.
Farmers and landowners have been advised to review these maps to see if their land is included in the maps and consider if their land meets the criteria for inclusion.
The Irish Farmers’ Association (IFA) has warned that there “is still a huge lack of awareness ” about the RZLT and said it believes the new tax could have significant financial implications for farm families.
It has advised farmers to urgently check their local authority maps to see if they are within the scope of the RZLT or not.
Landowners can make a submission to their local authority to challenge the inclusion of their land in the RZLT maps.
Minister O’Brien said famers and landowners should be proactive in relation to the new tax.
Anyone can view a local authority’s RZLT Draft Map to get more information on how to make a submission or make a request to have the land rezoned.
The minister added:
“Landowners are urged to review the draft map and make a submission if they consider their land does not meet the criteria for inclusion.
“Submissions which may include a request to amend the zoning of the land if necessary should be made to the relevant local authority in advance of the deadline of January 1, 2023.”