Mayo TD seeks clarity on impact of new residential zoned land tax

A Mayo TD is urging the government to resolve the confusion surrounding the new residential zoned land tax (RZLT) and its impact on farmers, which has caused uncertainty and frustration within the farming community.

The RZLT, set at a rate of 3% of a land's market value, is scheduled to take effect from February 2024.

This tax applies to lands zoned for residential use with access to essential services such as water supply, roads, and lighting.

Local authorities released draft RZLT maps outlining the lands subject to the tax last year, with the final map set to be published on December 1, 2023.

Deputy Aan Dillon stressed the need for active farmers who have been working the land to be exempt from the 3% tax.

He called upon local authorities to proactively engage with farmers to simplify the de-zoning process and avoid the rejection of their applications, which could lead to substantial annual tax bills.

Deputy Dillon emphasised: "Starting February 1, 2024, hardworking landowners engaged in farming, not property speculation, will face an unaffordable tax burden that could threaten their livelihoods.

"This is a grossly unfair situation that requires immediate resolution.

"The burdensome process has been imposed on farmers without sufficient notice or consideration.

"Farmers are simply earning their livelihoods and do not hold vast expanses of land for housing development."

Deputy Dillon pointed out the existing challenges faced by farmers when seeking to de-zone their land through local authorities.

These challenges often involve excessive bureaucracy and the potential for applications to be rejected by An Bord Pleanála.

He continued: “A lot of farmers have already incurred costs for professional advise because of the RZLT and had to pay out a lot of money as part of the process to engage with the whole legislation and that’s an unnecessary burden on farmers.”

"The entire process is mired in bureaucracy, causing significant stress to farmers who require clear guidance or legislative changes on how to expedite the de-zoning of their land before the tax takes effect next year.

"Our farmers are hardworking individuals focused on tending to their land and livestock.

"They are not property developers and should not be burdened with complex details of land development, zoning regulations, or mapping intricacies.

"It's a classic example of some civil servant in Dublin thinking this is going to create a thousand houses, but it's not."

He highlighted that smaller towns like Claremorris, Kiltimagh or Ballyhaunis would not see any houses built under this current scheme.