Dear Editor,
The Government’s deliberation to alleviate the residential zoned land tax’s impact on farmers who are cultivating on housing-zoned land, as reported by Cormac McQuinn, concerns anyone concentrated on rectifying the housing shortage problem (“Possible ways to ease the financial strain of residential zoned land tax on farmers to be reviewed prior to budget decisions”, News, July 29th).
In 2022, this tax was implemented with the goal of encouraging property holders to establish residential areas on their land complete with necessary utilities such as water, power and sewage systems. The government enforces a yearly 3% tax on the market value of the land until housing is constructed on it, acting as an incentive.
However, with vigorous lobbying, some developers, builders, and farmer representatives managed to persuade the Government to stall the implementation of the RZLT for one year. It’s crucial that this delay or dilution doesn’t continue, specifically in the ways your article suggests the Government is contemplating.
The zoning process has been significantly improved in recent years, rezoning large amounts of land following the housing crash of the late 2000s. Zoning choices are now associated with comprehensive assessments of housing requirements, demands and aims. However, these targets frequently prove too low, making it essential that every piece of zoned land is built upon quickly to progress in alleviating the housing scarcity.
Land meant for residential building, mainly found on city outskirts and towns, is chosen post heavy expenditure on essential infrastructure. These setups, largely funded by taxpayers, make it Government’s duty to ensure buildings utilise every zoned land piece. It also has a bigger responsibility to those requiring housing.
I understand that this tax may prompt farmers to sell land that has been in their lineage for generations, stirring up both sentimental and financial emotions. Nevertheless, the housing-zoned land’s market value greatly surpasses that of agricultural land. Therefore, selling land at the former price should suffice to purchase replacement land at the reduced rate.
It’s evident that the strategies set forth by the Government to address farmers’ apprehensions leave room for exploitation, consequently putting the entire effectiveness and integrity of the RZLT at risk. It remains unclear how any land classified as residential zoning wouldn’t meet the criteria for an exemption on the grounds of active farming. For example, any construction company or property developer could make their landholdings eligible for this exemption by renting it out for agricultural purposes, or by using it as a grazing area for their children or grandchildren’s ponies.
The Government’s decision to move forward with the implementation of the residential zoned land tax and the Opposition’s support of this crucial tax, despite strong opposition from influential interest groups, will unequivocally indicate to the electorate the level of their commitment to genuinely solving the problem of housing shortage. It will show whether their intent is to merely dull its most severe impacts or use this issue for political gain.
Prof. Michelle Norris,
Director, Geary Institute for Public Policy,
Professor in Social Policy,
University College Dublin,
Dublin 4.