RZLT to be 'modified' to address farmland 'anomalies'

Taoiseach Leo Varadkar has said that the Residential Zoned Land Tax (RZLT) will be “modified” to address “anomalies” that have arisen in relation to land that is actively farmed.

A number of TDs raised the issue in the Dáil yesterday (Tuesday, May 9), citing concerns over farmers whose land might fall subject to the tax.

Independent Galway East TD Seán Canney said: “Local authorities are preparing lands for the RZLT.

“An issue that is coming up a fair bit right across all local authorities is that functional farmers who are drawing entitlements fear for their existence because they feel this tax will be imposed on them at a rate of 3% of the development value.”

Canney called on the government to confirm that no “functional farmer” will be liable for the tax, saying: “Clarity is crucial for people right across the country.”

These concerns were echoed by Fianna Fáil TD for Limerick City Willie O’Dea, who said that, while he agreed in principle with the RZLT, the tax “could have profound implications for many farmers”.

“I am talking about genuine farmers whose families have farmed the land for generations. They are not interested in availing of the uplift in financial terms caused by rezoning,” O’Dea added.

“If the legislation as currently drafted is implemented, it will inevitably result in many of those people being driven out of farming because there is no way they are going to be able to support themselves and pay the tax from the income they hope to derive from farming.”

He asked if the government has proposals to modify the RZLT legislation to “avoid a consequence that must surely have been unintended”.

In response to O’Dea’s question, the Taoiseach said: “The short answer is ‘yes’.

“This tax was introduced to penalise people who were hoarding land during a housing crisis. It now appears to be affecting 100 or possibly 200 landowners who are not land hoarders,” he said.