Patrick O'Donovan (Limerick County, Fine Gael) | Oireachtas source

I am taking this matter on behalf of the Minister for Housing, Local Heritage and Government, Deputy Darragh O'Brien. I thank the Deputy for the question of the application of the residential zoned land tax, RZLT, to farmlands. The Finance Act 2021 inserted Part 22A, on RZLT, into the Taxes Consolidation Act 1997. The RZLT is designed to prompt residential development by landowners, including farmers, of land that is zoned for residential or mixed use, including residential purposes, and is serviced. It is important to note that to come within the scope of RZLT, farmland must be both zoned and fit for residential use and be serviced or have access to services. Farmland that is zoned for residential use but is not currently serviced is not within the scope of the tax and will only come within the scope of the tax should the land become serviced at some point in the future.

Within the Irish planning system, the county or city development plan is the principal planning strategy document for the development of a local authority area over the six-year statutory period. The development plan gives spatial expression to the physical, economic, social and environmental needs of the community in order to support and regulate new development, enhance amenities and protect the environment. Residential zonings contained within the development plan, which provide the basis for the application of the tax measure, form part of the adoption of the plan by the elected members, having regard to the need to accommodate sufficient land for housing development over the lifetime of the plan.

Land will be considered to be serviced for the purposes of the tax where it is reasonable to consider that the land has access to, or may be connected to, public infrastructure and facilities, including roads and footpaths, public lighting, foul sewer drainage, surface water drainage and public water supply necessary for dwellings to be developed on the land, and sufficient service capacity available for each development. Agricultural land that is zoned solely or primarily for residential use and is serviced meets the criteria set out within the legislation and, therefore, falls within the scope of the tax. Agricultural land that is zoned for a mixture of uses, including residential, is not in scope because farming is a trade or profession that benefits from an exemption in the legislation. These zonings are considered to reflect the housing need set out within the core strategy for the relevant local authority area. 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.

Draft RZLT maps were published by each local authority on 1 November last. The purpose of draft maps was to allow landowners, including farmers, to see if their land is within the scope of the tax. If landowners see that their land is included on the draft maps and believe that it should not be, they had the opportunity to make a submission to their local authorities by 1 January seeking to have the maps updated and their land removed from them. Local authorities will have now considered the submissions received and made determinations on whether particular lands should stay on the maps or be removed. If a landowner disagrees with the determination of a council, he or she can appeal to An Bord Pleanála. If a landowner requested a rezoning of his or her land, the local authority would consider the request and, if appropriate, it would commence a variation procedure to alter the zoning of the land, as the Deputy said. The variation procedure, and the local authority’s decision on whether or not to commence one, is part of normal zoning processes.

It is acknowledged that the tax will impact on landowners. However, if the land in question is zoned for a particular purpose under a plan adopted by the local authority, and has been subject to investment by the local authority and the State in the services necessary to enable development for housing to accommodate increased population, it is intended that the land should be used for housing. This tax measure is a key pillar of the Government’s response to address the urgent need to increase housing supply.

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