Offaly County Council denies Offaly landowner a land tax exemption

Offaly County Council has denied a Clara landowner's request to change his land zoning from residential to agricultural with the aim of avoiding paying a new land tax being introduced next year.

“I have looked at the request to rezone land at Kilcoursey, Clara,” Chief Executive Anna Marie Delaney told the July monthly meeting of the Council, “from residential back to agricultural. I do not recommend varying the Offaly County Development Plan 2021 to 2027 on foot of this submission as it would be contrary to proper planning and sustainable development.”

Ms Delaney said the Residential Zoned Land Tax (RZLT) was introduced in the Finance Act 2021.

“The objective of the tax,” she said, “is to activate land that is serviced and zoned for residential use or mixed used, including residential use, in order to increase residential development and to ensure regeneration of vacant and idle lands in urban locations.”

She said the tax will be administered by the Revenue Commissioners from 2025 onwards.

Offaly County Council prepared an annual draft map of the land considered to be in-scope for the RZLT which was placed on public display from 1st February 2024 until 1st April 2024.

“It is noted,” said the Chief Executive, “that five submissions were made from the public proposing removal of land from the annual draft map while one no submission was received requesting a variation of the Offaly County Development Plan 2021 to 2027 to change the zoning of land. It is this single submission that is the subject of my report today.

“The annual final map of land in-scope for the tax in County Offaly is proposed to be published on 31st January 2025 to take into account submissions and decisions on rezoning requests made in respect of the lands.

“A dedicated RZLT webpage exists on the Offaly County Council website, which contains comprehensive information on the RZLT process.”

Cllr Neil Feighery told the meeting that he knows quite a few farmers who are “up in the arms” about this new tax.

“It's pretty controversial and I wouldn't be surprised if the Oireachtas makes amendments to it as a result.”

Cllr John Leahy pointed out that no one likes a new tax.

“However we have a housing crisis and therefore the regeneration of our idle land is very important as we try to tackle the crisis. I think it's a good approach, this tax. It's using the carrot rather than the stick method. I think it should be seen as a positive thing in general.”

The councillor asked if any of the income collected by the Revenue Commissioners will find its way into the Council's coffers?

Cllr Eddie Fitzpatrick said some landowners don't want to be compelled into stopping farming their land to make way for residential developments.

Cllr Liam Quinn said the RZLT applies to serviced land.

“If its scope was beyond serviced land then this tax would have met bigger opposition.”

Cllr Fergus McDonnell said the councillors should be allowed more input and sway in the matter of land zoning. Cllr Noel Cribbin agreed.

“The Planning Regulator should be listening more to us rather than talking down to us,” he remarked.

Cllr Neil Feighery pointed out that “some land has been zoned residential but we all know it will never be developed, and it shouldn't be on the RZLT.”

“The Planning Regulator has said to me,” commented Andrew Murray, Director of Services for Planning, “that the RZLT is not a closed door. There is flexibility built into it.”