Taoiseach Leo Varadkar has been urged to make the necessary amendments to the Finance Act 2021 to remove all “genuinely farmed” land from the Residential Zoned Land Tax (RZLT).
The farm business chair of the Irish Farmers’ Association (IFA), Rose Mary McDonagh criticised that there is “no proposed change” in the Finance Bill for farmers affected by the tax.
Although the Taoiseach said the government wants to “fix” anomalies that have arisen, the Finance Bill, which was published yesterday (Thursday, October 19), shows “no material change”, she said.
RZLT
Last year Local Authorities already published draft RZLT maps outlining which lands would be subject to the new annual tax which will apply at a rate of 3% of the land’s market value.
However, the liability date of the tax has been deferred by one year until February 2025 as part of Budget 2024, and a draft revised final RZLT map will be published on February 1, 2024.
While describing the deferral of the tax as “important”, the IFA farm business chair said that the “underlying flaws” must be addressed.
“An extension on the imposition of the tax for 12 months is in place, but if any farmer wishes to have their land de-zoned, they must once again apply to their local authority.
“The majority of farmers who did apply to their local authority at the end of 2022 to have their land de-zoned had their applications rejected,” McDonagh said.
The Finance Bill states that landowners may make a submission in writing before May 31, 2024, to a local authority on a draft map published to allow for the revision of a final map for 2025.
McDonagh said that IFA analysis shows that, on average, the RZLT will be in excess of €2,500/ha per year which, she said, is a figure that “no farmer can afford”.
Finance Bill
The Finance Bill includes a number of farm-related measures, including the extension of Stamp Duty Consanguinity Relief to December 31, 2028, as announced under Budget 2024.
The Accelerated Capital Allowances for Farm Safety Equipment has also been extended to December 31, 2026, according to the Department of Finance.