Michael Healy-Rae (Kerry, Independent)
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664. To ask the Minister for Finance to examine the case of a person (details supplied); if farmers are exempt from the new regulations regarding residential land tax; and if he will make a statement on the matter. [41720/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Finance Act 2021 introduced Part 22A Residential Zoned Land Tax (RZLT) into the Taxes Consolidation Act 1997 (TCA 1997). RZLT is designed to prompt residential development by owners of land that is zoned for residential or mixed-use (including residential) purposes and that is serviced.

RZLT is an annual tax, calculated at a rate of 3% of the market value of the land within its scope, known as a relevant site. Relevant sites are identified by reference to maps published by local authorities, which are revised on an annual basis, and reflect land that the local authority has determined meets the relevant criteria for the tax, being that the land is zoned for residential or mixed-use (including residential) purposes and that is serviced. While such maps may include residential properties which are subject to Local Property Tax, such properties do not fall within the charge to the tax. The tax is due and payable from 2025 onwards in respect of land which satisfied the relevant criteria in 2022. The first RZLT liability arose on 1 February 2025 and was payable in May 2025, subject to certain exemptions and deferrals.

It is important to note that, to come within the scope of RZLT, farmland must be both zoned for residential use and serviced. Farmland that is zoned for residential use, but which 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. 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 water supply, necessary for dwellings to be developed on the land and with sufficient service capacity available for such development. If the relevant local authority determines that the farmland, while zoned for residential use, is not serviced, it will not appear on the annually revised map and, as such, is outside the scope of the tax.

In addition, where farmland is zoned for a mixture of residential and other uses (and not purely for residential development) and is serviced, such land will not appear on the annually revised map if the local authority determines that such land is integral to the operation of a farming trade carried out on or beside it. Again, should such land not appear on the annually revised map, it is outside the scope of the tax.

Where a local authority determines that farmland does meet the criteria to fall within the scope of the tax, and appears on an annual revised map, a number of exclusions may apply.

Section 653AHA TCA 1997 provides for an exemption for land that is within the scope of the tax but is subject to a contract that precludes the landowner from developing it. For the exemption to apply, the contract must have been entered into prior to 1 January 2022, i.e., prior to the introduction of RZLT. For example, where a farmer leased land prior to 1 January 2022 and the requisite conditions are met, the farmer may claim an exemption from the tax for the period of the lease.

In addition, Finance Act 2024 introduced an opportunity for landowners, including farmers, to submit a rezoning request in respect of land included on the revised map for 2025 which was published by local authorities by 31 January 2025. Where a rezoning request was submitted by the landowner to the relevant local authority between 1 February and 1 April 2025, then, subject to certain conditions being met, the owner could claim an exemption from the 2025 RZLT liability arising in respect of such land on foot of making such a request. To claim the exemption, the owner must have registered the relevant site with Revenue and included the claim in the 2025 RZLT return which was due to be filed with Revenue on or before 30 May 2025. Local authorities were obliged to advise owners who submitted rezoning requests in respect of land appearing on the 2025 revised map as to whether the local authority proposes to vary the zoning of such land by 30 June last. Where the land is rezoned by the local authority for a purpose that excludes residential use, it will not be included in future RZLT maps and as such, will not be subject to the tax.