Landowners were not directly informed that they have to pay new tax

Many people only found out that their land was subject to the new Residential Zone Land Tax (RZLP) after an appeal date had passed. 

And many only became aware that there had been a submission opportunity after it closed.

This was raised by a number of councillors at a special meeting of Donegal County Council held in Lifford on Wednesday.

The meeting took place to discuss recommendations relating to the Draft Letterkenny Development Plan 2023 to 2029.

However, with residential zoning a major talking point at the meeting, councillors asked for clarification on a number of RZLP issues.

Cllr Ciaran Brogan (FF) asked the council executive to explain the RZLP.

Senior Planner Paul Christie told councillors that the tax was an initiative of the Office of the Revenue Commissioners and the Department of Finance.

Sites that were zoned to allow for residential use were identified and mapped.

“The final map will be finalised in November,” said Mr Christie. “Any lands on that map will be liable for tax in 2024.”

According to the website Revenue.ie, the tax of 3% of the market value of the land will be applied in 2024 and will be payable every May thereafter. It will apply to land that is zoned for residential use and that is serviced. 

Land is deemed to be serviced where it has sufficient access to the infrastructure required for residential development. This includes roads, paths, lighting and access to water supply and services, including sewers and drainage. 

Mr Christie told councillors that 132 submissions were received during the consultation period. 

“Quite a number of those landowners had the right to make an appeal to An Bord Pleanala and those appeals are making their way through the system at the moment,” he said. 

Cllr Donal Coyle said he was aware of landowners who were on the map, even though their land was not serviced.

He asked: “They wouldn’t be allowed to build on land with no services, so why would they have to pay tax on it?”

Mr Christie replied: “The map was supposed to exclude lands that weren’t serviced. We had to make judgement calls on land around the county in a very short space of time. 

“People had the opportunity to make submissions and they were taken off the map. They then had the opportunity to appeal to An Bord Pleanala.”

Cllr Nicholas Crossan (Ind) said there were a lot of people who had not seen notifications about the RZLT on social media or in the press. 

“They have now missed the opportunity to put in submissions,” he said.

“I am not blaming Donegal County Council,” he said. 

“But there are a lot of people who have family land and have no intention of building on it. They may now have to sell land.

He called for the Office of the Planning Regulator to exercise leeway. 

Cllr Crossan asked Donegal County Council to formally request that more time be given to landowners. 

Fellow Inishowen councillor, Joe McGuinness (FG) proposed that a submissions deadline extension of three to six months be requested.

“There is land in Inishowen that was developed for roads and is now landlocked,” he said. “And now it is being taxed. People may not be able to hold on to those lands.”

He and Cllr Albert Doherty (SF) expressed particular concern for farmers who found themselves subject to a tax without having been directly notified in advance of the submissions closing date.

“It hasn’t been explained clearly enough to the affected people,” said Cllr McGuinness.

“It is not fair treatment being afforded to these landowners.”

Cllr Donal Mandy Kelly (FF) agreed, saying: “We need more clarity. Farmers or landowners that are in this position need to get time on this.”

Director of Community Development and Planning Services Liam Ward said: “We are quite happy to write that letter seeking that extension. 

“But to clarify, it is a matter that is outside the role of the council.”

Cllr McGuinness said: “We have to ask. We have to get Revenue to say yes or no either way.”

Cllr Ciaran Brogan asked if people whose land was being rezoned to residential as a result of Wednesday’s meeting on Letterkenny Development Plan would be informed. 

Mr Christie replied: “The legislation doesn’t require us to notify the owners but I think it would be best if we do so.”