Zoned land tax a ‘red herring’

Government plan will not result in any new houses, councillors claim

Irate local councillors have asked for a letter to be sent to the Minister for Finance over the new Residential Zoned Land Tax (RZLT), which they claim will impose an unfair levy on many Tipperary landowners while failing to provide any extra housing.

Launched last year by the ministers for Finance and for Housing, Local Government and Heritage, the RZLT aims to increase housing supply as part of the Housing for All plan. The tax will apply to identified lands from 2024. If the land is not activiated for residential development, it will become subject to an annual levy of 3% of its market value.

But at the February meeting of Nenagh Municipal District, councillors agreed that there is little prospect of building houses in many parts of Tipperary, given the costs involved. While he understood the thinking behind the RZLT, Cllr Michael O'Meara described the move as a “red herring” that would impose a substantial cost on many local people. He said the Government must adopt a more pragmatic approach to the situation.

“The Government is trying to use a sledgehammer to crack a nut,” Cllr O'Meara said. “It's a classic example of some civil servant in Dublin thinking this is going to create a thousand houses, but it's not.” People in smaller towns like Borrisokane would not see any houses built under the initiative, he warned.

Cllr Ger Darcy agreed that there is no chance of any landowner in a rural area being offered substantial money by a developer for houses in the present climate. “It's not going to work,” he said of the RZLT, asking if the district could refer the councillors' concerns to the Minister for Finance.

Senior Executive Planner Anne Marie Devaney said local authorities were not engaged prior to the publishing of the RZLT legislation. The tax is an incentive to drive housing delivery. The local authority's role is to publish maps, take submissions and make determinations towards this end. Determinations can be appealed to An Bord Pleanála, and the legislation sets out strict timelines within which the board must respond.

Ms Devaney made the point that landowners were given the opportunity to make submissions on whether or not their land meets the zoned criteria. A total of 91 submissions were received and are currently being reviewed

A supplemental map is to be published in May. The maps are to be reviewed on an annual basis.

‘SOLD A PUP’

Cllr O'Meara said the members and executive of Tipperary Co Council had worked hard together on preparing a new County Development Plan. “At no point did this raise its ugly head,” he exclaimed in relation to the land tax.

“We've been sold a pup... it won't create one extra house.” Cllr O'Meara also wanted the matter taken up at national level.

Having raised the matter, Cllr Joe Hannigan was particularly concerned that local authorities had not been engaged with. He agreed that the tax seems to be a means of “forcing people to use land” without understanding that there is no chance of building houses.

Cllr Hannigan warned that a lot of local landowners would be “caught in the crossfire” and he wanted to know what Tipperary's TDs are doing about the situation.

“We're playing Junior B here,” he said, calling for the matter to be taken up at a higher level.

Cllr Phyll Bugler was concerned about what the RZLT would do to Ballina, where she said people want more green space, as opposed to being “choc-a-bloc with houses”.

TREATMENT PLANTS

Ms Devaney understood the councillors' concerns but said the council as local planning authority must work within the legislation. She added that waterwater treatment plants are a key consideration in the matter; Cloughjordan, for example, is not subject to the tax as the local treatment plant needs to be upgraded.

Director Marcus O'Connor referred to a submission from Irish Water that made no reference to the planned upgrade of Nenagh's wastewater treamtent plant, which is on the capital programme.

Cllr Séamie Morris expressed concern over this omission and wanted the local authority to write to Irish Water over it. There is lots of interest in building in Nenagh at present, he said.

Mr O'Connor pointed out that planning permission is being granted for housing developments in Nenagh. The town needs houses and the council will talk to anyone interested in developing, he said.