Some farmland that has been leased could be excluded from the new Residential Zoned Land Tax (RZLT), the Department of Finance has said.
The department confirmed to Agriland that an amendment to the Finance Bill 2022 has been proposed on the issue.
The amendment will shortly be introduced as the bill goes through the committee stage in the Dáil.
If passed, the amendment will introduce an exemption from the RZLT for contractual land arrangements which were entered into prior to January 1, 2022.
It has also been announced that draft maps have been published by local authorities as part of the implementation of the RZLT.
The maps identify land that is within the scope of the tax.
Landowners whose land is included on a draft map are being asked to review the map for their area to consider if their land meets the criteria for inclusion, and make a submission to their local authorities accordingly.
During 2023, supplemental and final maps will be prepared by local authorities identifying the land within scope. The final maps will be revised annually from 2025 onwards.
The aim of the tax, which will apply from 2024 to relevant land at a rate of 3% of its market value, is to activate land for residential development throughout the country.
In making their submission, landowners can make a suggested correction to the map if they feel their land does not meet the criteria for the tax.
The tax applies to land that is:
- zoned suitable for residential development, whether it be solely or primarily for residential use, or for a mixture of uses including residential use;
- serviced by infrastructure and utilities (or able to be serviced);
- not affected by physical conditions which may hinder the development of housing.
Existing residential property may appear on local authority maps prepared for the purpose of the Residential Zoned Land Tax. However, where such property is liable to Local Property Tax (LPT), it will not be liable for the RZLT.
In cases where the gardens and yards of such properties exceed 1ac in size, property owners paying LPT will still have to register for RZLT, but won’t have to pay.
Submissions from landowners must include ordinance survey maps at a scale at which their land can be identified.
The RZLT has come in for criticism from farmer representatives.
The Irish Farmers’ Association (IFA) said that it “beggars belief” that some farmers will potentially be charged for the “privilege of farming privately owned land” which they have done for years, or possibly even generations.
Speaking in August, IFA president Tim Cullinan said: “Farmers shouldn’t be penalised by imposing [the tax] on them simply due to the location of the land they are farming.
“It has to be recognised that farmers are private land owners, not builders. Farmers have land to farm it, not hoard it as an investment,” he added.