Owners of undeveloped Laois housing land trying to avoid paying new tax
Several owners of undeveloped housing zoned land in Laois are claiming that it cannot be developed, to allegedly avoid paying a new tax on it.
Starting in 2024, the Residential Zoned Land Tax is aimed at stopping developers from sitting on zoned land for years, by charging them 3% of the market value.
Two landowners have alleged to Laois County Council that they are prevented from developing their lands because water services are "deficient".
Cllr Catherine Fitzgerald is concerned that it will cause a shortage of new housing.
"Landowners are alleging that Irish Water is deficient and is preventing development proceeding. How is this going to pan out? If they put in a submission that they can't develop land, does it mean the land could be dezoned?
"They have sent these submissions as a reason for not paying the land tax, which was brought in to ensure there is not land left undeveloped.
"We are curtailed to so many acres. Where do we go from here?" she asked.
However the council's Director of Services for housing claims that all Laois residential zoned lands are servicable.
Angela McEvoy said this has been confirmed by Irish Water.
"We went to Irish Water and they said the lands are serviceable. Before they were zoned we would have gone to An Bord Pleanála and got a red light or green light. It is something we have to be mindful of, that all are available to be serviced, by Irish Water or by roads. I'd say they are. There might be a cost involved to bring them to that level. They are in towns that have public infrastructure," Ms McEvoy said.
Cllr Fitzgerald is still concerned.
"It could have a knock on effect," she said.
The council has prepared a draft map of the Laois lands it considers eligible for the tax, as reported in the February managment report.
"The Planning Authority has asked for further information regarding three parcels of land, based on submissions received during the public consultation stage. It has also written to Irish Water to seek clarification on two submissions where the landowners are alleging that Irish Water services are deficient, thereby preventing development proceeding.
"An evaluation of the submissions, including a determination as to whether or not the subject lands shall be retained in scope for the purposes of the Residential Zoned Land Tax, is required to be made to the planning authority by not later than April 1 2023.
"A supplementary map will be published on May 1 identifying any additional land considered to be in scope as a result of the change of zoning, servicing, or where the local authority becomes aware of the fact that land, which did not appear on the draft map, may meet the criteria for being in scope, such as where this has been identified during submissions," the council reports.