Robert Troy (Longford-Westmeath, Fianna Fail)
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143. To ask the Minister for Agriculture, Food and the Marine his views on the inclusion of farmland in active use in the residential zoned land tax; if he has engaged with the Minister for Finance on this issue; and if he will make a statement on the matter. [53176/22]

Charlie McConalogue (Donegal, Fianna Fail)
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While primary responsibility for taxation policy is with the Minister for Finance, I continue to work closely with him to ensure that the tax code reflects the Government’s priorities for the agri-food sector and the economy generally.

We are aware of the concerns expressed by farm organisations and individual farmers in relation to the inclusion of farmland in the Residential Zoned Land Tax.

One of a range of measures within the Housing for All Strategy, the objective of the Residential Zoned Land Tax is to provide an incentive to landowners to build homes. The Department of Housing, Planning and Local Government estimates that it is expected to impact 7,000 hectares to 8,000 hectares of farmland, or approximately 0.2% of such land in the country.

In drafting the Residential Zoned Land Tax legislation, Minister Donohoe has always been conscious of the need to be fair to the farming community. In this regard, he has incorporated a couple of provisions to provide farmers and others with an opportunity to both challenge their inclusion within the scope of the tax on the one hand and on the other hand to make the case for rezoning. They are as follows:

(i) As well as land having to be zoned, there is also a requirement that it be serviced in order for it to come within the scope of the tax. This means there is an opportunity for farmers and others to challenge any decision to make them subject to the tax, if they believe that the land is not adequately serviced. An appeal mechanism to both the Local Authority and an Bord Pleanála is provided where there is a dispute about this matter.

(ii) As part of the RZLT, a provision has been inserted to allow a farmer to apply to have their land rezoned. The legislation provides in section 653 I (Zoning Submissions) of Part 22A of the Tax Consolidation Act 1997 - inserted by section 80 of the Finance Act 2021 - an opportunity for landowners 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.

My Department and I will continue to engage on the development of the Residential Zoned Land Tax.