Farmers are being advised to check whether any of their land might fall subject to the new residential zoned land tax (RZLT).

The maps highlighting where land is zoned will be made public next week by all local authorities.

Any land that is zoned may be subject to the tax, which will be introduced in 2024 at a rate of 3% of the land’s value annually. Land must be both zoned and serviced to be liable for the tax. Serviced is described as “having access to the necessary public infrastructure and facilities including road and footpath access, public lighting, foul sewer drainage, surface water drainage and water supply”. It is also stipulated that these services must be available in sufficient capacity.

If farmers wish to have zoned land dezoned, they only have until the end of the year to apply. The two-month window is a narrow one, the IFA is warning.

“IFA has long held the view, and continues to lobby with Government, that farmers should be exempt from the residential zoned land tax because they are private landowners, not builders,” said IFA president Tim Cullinan.

“Many will simply be forced to sell some land or exit entirely. It’s completely inequitable, unjust and unfair on farm families.”

Vacant site levy

The predecessor to the zoned land tax, the vacant site levy, has been controversial in its application. Farmers with zoned land in counties like Kilkenny and Cork were deeply unhappy with the construction of the vacant site register. They highlighted the inclusion of actively farmed land on the register, despite the criteria requiring that land be “vacant or idle”.

Even a ministerial guideline in 2018 which specified that “land which was purchased for agricultural use prior to being zoned residential and which continues to be operated for farming purposes shall be exempt from the levy” failed to resolve the matter completely.

In 2019, Cork farmer Allan Navratil overturned the placing of his land just outside Midleton on the register through a judicial review in the High Court.

Farmers will be hoping the RZLT will be administered with more clarity and consistency across the country.