Sinn Féin spokesperson for agriculture, Claire Kerrane has said that some farmers are very concerned about the potential tax bills as a result of the Residential Zoned Land Tax (RZLT).
The Roscommon–Galway TD has called on the government to confirm that where land is actively being used for agricultural purposes it can be excluded from the tax.
Landowners have until April 1 to make submissions to the relevant local authority on whether their land meets the criteria for inclusion as residential zoned and serviced land.
Last month draft RZLT maps, which detail the land that is within scope of the tax, were published by local authorities around the country.
RZLT
The government has said that the aim of the new RZLT is primarily to “incentivise landowners to activate existing planning permissions and carry out development for housing on identified lands”.
Under Budget 2024, it was announced that the liability for impacted landowners would be extended by one year to February 1, 2025.
The government said that the deferral is to allow landowners to request rezoning following the publication of draft revised maps.
However, Deputy Kerrane said that it appears that the criteria for having land excluded from RZLT has not significantly changed, and land that is being farmed will not necessarily be removed from the revised maps.
She said that land which is actively used for agricultural purposes was not specified as a criteria for having land excluded from RZLT.
As a result, she said farmers affected before could still find themselves with some or all of their land zoned and liable for RZLT from 2025.
Minister for Finance, Michael McGrath, previously said that the tax will apply to land that is zoned suitable for residential development and serviced which means where it is “reasonable to consider” the land may have access, or be connected, to public infrastructure and facilities.
The minister has said that to come within the scope of RZLT farmland must be both zoned for residential use and serviced.
“Agricultural land which is zoned solely or primarily for residential use and meets the criteria set out within the legislation therefore falls within the scope of the tax,” he said.
Tax
Deputy Kerrane said that many farmers have already had their requests and appeals for the removal of their agricultural land from RZLT maps refused, with some receiving significant tax bills.
“So far the government have chosen to kick the can down the road on this issue, rather than actually providing assurance to farmers and landowners on agricultural land being excluded from RZLT maps.
“They cannot pretend to be unaware of the concern and significant financial pressure this could place many farmers under.
“Myself and my party colleagues have been contacted by many farmers whose land was included in the initial RZLT maps and who faced hefty tax bills that they cannot afford.
“Many are worried sick that this will put an end to their ability to farm or will force them to sell their land,” she said.
“The decision to defer the liability for RZLT to allow farmers and landowners to request re-zoning of their land is well and good, but it is meaningless unless the criteria to exempt agricultural land that is actively being farmed is also changed,” the TD added.
Deputy Kerrane said that “there is no doubt” the RZLT is important for delivering much-needed housing, but actively farmed lands should be able to be excluded from zoning.
“Such a liability could seriously impact the incomes of many family farms. The last thing most farmers need is a significant bill on top of the soaring input costs they have faced in recent years.
“The Tánaiste stated in the Dáil just last week that the government is ‘endeavouring’ to make sure that those who want to continue farming land ‘are not taxed unfairly’. Yet, we will still have no update on this issue and the deadline is in days.
“Farmers need assurances that, when they make their submission, they can reasonably expect their land that is actively being farmed can be excluded from the updated RZLT maps,” she said.