Dáil Éireann Debate, Thursday - 11 April 2024
108. Deputy Michael Healy-Rae asked the Minister for Finance if farmers who are actively farming will be exempt from the residential zone tax (details supplied); and if he will make a statement on the matter. [15949/24]
Amharc ar fhreagraThe Residential Zoned Land Tax (RZLT) was introduced in Finance Act 2021. It is a new tax which seeks to increase housing supply by encouraging the activation of development on lands which are suitably zoned and appropriately serviced. It aims to bring those lands which have benefitted from investment in services and are capable of being developed forward for housing. The tax is an action contained in Housing for All, the Government’s plan for housing, to increase housing supply and is supported in the Programme for Government.
In order to be liable for the tax the land must be zoned suitable for residential development and be serviced.
It is important to note that, to come within the scope of RZLT, farmland must be both zoned for residential use and serviced. Farmland that is zoned for residential use, but which is not currently serviced, is not within the scope of the tax.
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. These zonings are considered to reflect the housing needs 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.
As part of Budget 2024, I decided to extend the liability date of the tax by one year, from February 2024 to February 2025. This is to allow for the annual mapping cycle to complete and afford landowners another opportunity to engage with the relevant local authority.
The deferral provides a further opportunity to landowners, whose land appears on a draft revised final map published on 1 February 2024, to request re-zoning or to make a submission regarding land not meeting the criteria for inclusion on the map.
Landowners who wish to make a submission regarding land not meeting the criteria for inclusion had until 1 April 2024 to make submissions to the relevant local authority. Landowners wishing to make submissions regarding land for which they wish to make a re-zoning request have until 31 May 2024 to make submissions to the relevant local authority.
Decisions on whether to amend zonings are a matter for each local authority, taking into account the need to ensure that housing supply targets across the local authority area can be met. Furthermore, provision is made in the Planning and Development Act 2000 for elected members to seek a report from their Chief Executive on the matter of proposed re-zonings.
It should also be noted that, Finance Act 2022 introduced an exemption for land that is within the scope of the tax but which is subject to a contract that precludes the landowner from developing it. For the exemption to apply, the contract must have been entered into prior to 1 January 2022, i.e., prior to the introduction of RZLT. For example, where a farmer leased land prior to 1 January 2022 and the requisite conditions are met, the farmer may claim an exemption from the tax for the period of the lease.
The Department of Finance regularly engages with both the Department of Housing, Local Government and Heritage and the Department of Agriculture, Food and the Marine on the implementation of the RZLT.
Further information regarding RZLT maps and the related submission processes are available on each local authority website, or at www.gov.ie/rzlt.
As with all tax heads, RZLT will be reviewed as part of the annual Finance Bill process.
