Up to 8,000ha of farmland or approximately 0.2% of all farmland in the country is expected to be affected by the residential zoned land tax (RZLT) says Minister for Agriculture Charlie McConalogue.
Hundreds of farmers could be hit with the tax on 3% of the market value of their zoned farmland.
The tax will be applied to land which has been zoned as suitable for residential development on 1 January 2022 and on which residential construction has not commenced before 1 February 2024.
The tax will be will be payable before 23 May 2024 and if not paid, the farmland can’t be sold or transferred.
Farmers are encouraged to check whether their land will fall under the RZLT via local authority maps which demonstrate the zoning.
These maps will be available in farmers’ local authority offices and on their websites from Tuesday 1 November.
De-zoning
The farmers the tax applies to are being warned that there is only a two-month window to assess any potential liability to the tax and to appeal to have their land de-zoned.
As well as farmland having to be zoned, there is also a requirement that it be serviced in order for it to come within the scope of the RZLT.
Minister McConalogue highlighted that there is an opportunity for farmers to challenge any decision to make them subject to the tax, if they believe that the land is not adequately serviced. There is an appeal mechanism to both the local authority and An Bord Pleanála in this regard.
The Minister also pointed out that as part of the RZLT, a provision has been inserted to allow a farmer to apply to have their land rezoned.
This part of the legislation affords the landowner an opportunity to request a variation of the zoning of their land prior to the commencement of the tax.
“Should a farmer believe that the residential zoning of their land is inappropriate, they may avail of this opportunity to have the zoning status of their land considered by the local authority,” he said.
Minister for Finance Paschal Donohoe. / Clodagh Kilcoyne
Minister McConalogue said that in drafting the RZLT, Minister for Finance Paschal Donohoe has “always been conscious of the need to be fair to the farming community”.
He said both he and the Department of Agriculture will “work closely with [Minister Donohoe] to ensure that the tax code reflects the Government’s priorities for the agri-food sector”.
‘Don’t be caught unaware’
Irish Farmers' Association (IFA) president Tim Cullinan encouraged all farmers with land on the outskirts of cities, towns and villages to look at the RZLT maps in order to “know where you stand”.
“Don’t be caught unaware, because the penalties for non-compliance are severe. There’s only two months to lodge an appeal if impacted or dissatisfied, even less when you take in the Christmas period.
"It will take a bit of time to pull together, because you’ll need proof of ownership, as well as OSI maps, to make a submission,” he said.
IFA president Tim Cullinan says the tax is a penalty on farmers who happen to farm near cities and towns. \ Finbarr O'Rourke
The IFA president said the tax unfairly penalises those farmers who happen to farm near towns and cities and warned that farmers “should be exempt” as they are “private landowners, not builders”.
“Farmers have land to farm it and produce food, not hoard it as an investment. They cannot be charged for the privilege of farming land that they have done for years, even generations.
"Given the economic yield relative to potential returns, many will simply be forced to sell some land or exit entirely. It’s completely inequitable, unjust and unfair on farm families,” he said.
Read more
Farmers have just two months to dezone from new land tax
Land tax could decimate farm incomes
Up to 8,000ha of farmland or approximately 0.2% of all farmland in the country is expected to be affected by the residential zoned land tax (RZLT) says Minister for Agriculture Charlie McConalogue.
Hundreds of farmers could be hit with the tax on 3% of the market value of their zoned farmland.
The tax will be applied to land which has been zoned as suitable for residential development on 1 January 2022 and on which residential construction has not commenced before 1 February 2024.
The tax will be will be payable before 23 May 2024 and if not paid, the farmland can’t be sold or transferred.
Farmers are encouraged to check whether their land will fall under the RZLT via local authority maps which demonstrate the zoning.
These maps will be available in farmers’ local authority offices and on their websites from Tuesday 1 November.
De-zoning
The farmers the tax applies to are being warned that there is only a two-month window to assess any potential liability to the tax and to appeal to have their land de-zoned.
As well as farmland having to be zoned, there is also a requirement that it be serviced in order for it to come within the scope of the RZLT.
Minister McConalogue highlighted that there is an opportunity for farmers to challenge any decision to make them subject to the tax, if they believe that the land is not adequately serviced. There is an appeal mechanism to both the local authority and An Bord Pleanála in this regard.
The Minister also pointed out that as part of the RZLT, a provision has been inserted to allow a farmer to apply to have their land rezoned.
This part of the legislation affords the landowner an opportunity to request a variation of the zoning of their land prior to the commencement of the tax.
“Should a farmer believe that the residential zoning of their land is inappropriate, they may avail of this opportunity to have the zoning status of their land considered by the local authority,” he said.
Minister for Finance Paschal Donohoe. / Clodagh Kilcoyne
Minister McConalogue said that in drafting the RZLT, Minister for Finance Paschal Donohoe has “always been conscious of the need to be fair to the farming community”.
He said both he and the Department of Agriculture will “work closely with [Minister Donohoe] to ensure that the tax code reflects the Government’s priorities for the agri-food sector”.
‘Don’t be caught unaware’
Irish Farmers' Association (IFA) president Tim Cullinan encouraged all farmers with land on the outskirts of cities, towns and villages to look at the RZLT maps in order to “know where you stand”.
“Don’t be caught unaware, because the penalties for non-compliance are severe. There’s only two months to lodge an appeal if impacted or dissatisfied, even less when you take in the Christmas period.
"It will take a bit of time to pull together, because you’ll need proof of ownership, as well as OSI maps, to make a submission,” he said.
IFA president Tim Cullinan says the tax is a penalty on farmers who happen to farm near cities and towns. \ Finbarr O'Rourke
The IFA president said the tax unfairly penalises those farmers who happen to farm near towns and cities and warned that farmers “should be exempt” as they are “private landowners, not builders”.
“Farmers have land to farm it and produce food, not hoard it as an investment. They cannot be charged for the privilege of farming land that they have done for years, even generations.
"Given the economic yield relative to potential returns, many will simply be forced to sell some land or exit entirely. It’s completely inequitable, unjust and unfair on farm families,” he said.
Read more
Farmers have just two months to dezone from new land tax
Land tax could decimate farm incomes
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