Thomas Lyons 
Fine Gael TD, Michael Ring, has voiced his concerns about the potential impact of the new Residential Zoned Land Tax (RZLT) on farmers. The tax, which is set to take effect from February 1, 2024, is part of the Irish government’s “Housing for All” plan. Its aim is to increase the supply of housing by releasing land that could be used for residential development. The RZLT will be calculated at 3% of the market value of land “in scope” and will operate on a self-assessment basis.
Deputy Ring welcomed Taoiseach Leo Varadkar’s commitment to finding a solution that would ensure farmers are not unfairly targeted by the new tax. He expressed concern that farmers could be hit with a tax bill of up to €60,000 on land that is designated as zoned for housing, but which they use for agricultural production purposes. Deputy Ring believes that it is unfair to penalize farmers who did not request their land to be zoned for residential development.
The TD has raised the issue with the Taoiseach and the government in recent weeks. He is pleased that the Taoiseach has recognized the problem and has committed to working with ministerial colleagues to find a solution. The Taoiseach has identified several groups who could be affected by the tax, including those who sought to have the zoning of their farmland corrected but were refused, developers who have planning permission but are awaiting appeal or court decisions, and land that is zoned for residential development but cannot be developed in the short- to medium-term.
Mayo Councillor, Tom Connolly, has also completed work on this issue. Deputy Ring has called for stakeholders to work together to provide clarity on the matter without delay. He believes that local authorities should facilitate and make it easier for farmers to ensure that their land is correctly zoned. Deputy Ring is confident that a solution can be found that will exempt farmers from the RZLT.
The RZLT has been introduced as part of the Irish government’s “Housing for All” plan. Its aim is to increase the supply of housing by releasing land that could be used for residential development. The tax will operate on a self-assessment basis and will be calculated at 3% of the market value of land “in scope”. The tax will apply to land that is zoned for residential development but is not being used for that purpose.
The Irish Farmers’ Association (IFA) has expressed concern about the potential impact of the RZLT on farmers. The IFA believes that the tax could have unintended consequences for farmers who are not “land hoarders” and were not the intended target of the tax. The IFA has called for farmers to be exempt from the tax.
The Irish government has stated that the RZLT is necessary to increase the supply of housing and to ensure that land is being used for its intended purpose. The government has also stated that exemptions will be available for farmers who can demonstrate that their land is being used for agricultural purposes.
In conclusion, the new Residential Zoned Land Tax has been met with concern from farmers who fear that they will be unfairly targeted by the tax. Deputy Michael Ring has raised the issue with the Taoiseach and is pleased that a solution is being sought. The Irish government has stated that the tax is necessary to increase the supply of housing, but exemptions will be available for farmers who can demonstrate that their land is being used for agricultural purposes. The Irish Farmers’ Association has called for farmers to be exempt from the tax, and local authorities have been urged to make it easier for farmers to ensure that their land is correctly zoned.
