Dáil Éireann Debate, Tuesday - 25 July 2023
925. Deputy Carol Nolan asked the Minister for Agriculture, Food and the Marine to address concerns that the introduction of the residential zoned land tax will have an adverse impact on farmers in terms of their ability to retain land for agricultural use; the discussions he has had with relevant Cabinet colleagues on this matter; and if he will make a statement on the matter. [36300/23]
View answerTaxation policy is the primary responsibility of the Minister for Finance. With regard to the introduction of Residential Zoned Land Tax (RZLT), I have discussed with my colleague the Minister for Finnance the concerns expressed by farmers and their representative bodies on this issue.
The RZLT was introduced in Finance Act 2021 and was designed to prompt residential development by landowners of land that is zoned for residential or mixed-use (including residential) purposes and that is serviced.
The Department of Housing, Local Government and Heritage published Guidelines for Planning Authorities on the RZLT in June 2022, which provided guidance on identifying the land which is in scope 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, and
• serviced (that is: reasonable to consider may have access, or be connected, to public infrastructure and facilities, including roads and footpaths, public lighting, foul sewer drainage, surface water drainage and water supply, necessary for dwellings to be developed and with sufficient service capacity available for such development).
Draft maps were published on 1 November 2022. Where land was identified on a draft map, there was the opportunity for a landowner to make a submission to the local authority regarding the land, setting out why they believe the land does not meet the criteria for inclusion. Several exclusions are set out in the legislation, and owners of permanently occupied residential properties included in residential zonings on the map are not liable for RZLT.
It is acknowledged that this will impact landowners who may be using the land for non-residential use such as farming. However, the land may still be zoned residential as it has been subject to investment by the local authority and the State to enable housing development to accommodate constant supply in the most suitable locations.
In identifying in-scope lands for the tax, local authorities first look at the zonings contained in their development plan. The plan identifies expected population growth to be accommodated over a six-year period. The local authority subsequently determined the level of land in hectares required to provide housing for the expected population increase, adjusting accordingly.
It is important to note that landowners were afforded the opportunity to make submissions to their local authority and to request a change to the zoning of their land. The deadline for submission was 1 January 2023. Decisions on whether to amend zonings because of submissions were a matter for the relevant local authority only and they provided landowners with a written determination on whether the land should stay on the map or be removed from it on or before 1 April 2023. If the landowner disagreed with the determination, they could appeal to An Bord Pleanála on or before 1 May 2023.
Supplemental zoned land maps, identifying additional zoned and serviced land identified at draft maps stage, were prepared, and published by local authorities by 1 May 2023. Submissions to local authorities could be made up to 1 June 2023.
Agricultural land which is zoned solely or primarily for residential use meets the criteria set out within the legislation and therefore falls within the scope of the tax. These zonings are considered to reflect the housing need set out within the core strategy for the relevant local authority area and landowners within such zonings may fall within the scope of the tax, in the interests of ensuring an appropriate supply of housing on zoned lands.
I will continue to engage on these issues with the Minister for Finance.
Question No. 926 answered with Question No. 910.
