664. Deputy Peter Roche asked the Tánaiste and Minister for Finance if consideration has been given to removing actively farmed land from residential zoned land tax; and if he will make a statement on the matter. [59100/26]

836. Deputy Peter Roche asked the Tánaiste and Minister for Finance if consideration has been given to removing actively farmed land from residential zoned land tax; and if he will make a statement on the matter. [59175/26]

I propose to take Questions Nos. 664 and 836 together.

Finance Act 2021 introduced Part 22A Residential Zoned Land Tax (RZLT) into the Taxes Consolidation Act 1997. RZLT is designed to prompt residential development by owners of land that satisfies the relevant criteria for the tax, that being that the land is zoned for residential or mixed-use (including residential) purposes and that is serviced.

RZLT is an annual tax, calculated at a rate of 3% of the market value of the land within its scope. The tax is due and payable from 2025 onwards in respect of land which satisfied the relevant criteria on 1 January 2022, or in the course of 2022, as where land satisfies the relevant criteria after 1 January 2022, RZLT will be first due in the third year after the year in which it satisfies the relevant criteria. RZLT first arose on 1 February 2025 and the 2026 liability was payable by 23 May 2026, subject to certain exceptions.

The legislation underpinning RZLT provides for a number of exemptions, deferrals and abatements subject to the relevant criteria being met. The legislation does not provide for a specific exemption for farms. Landowners including farmers, who own land meeting the criteria for RZLT are subject to the tax. It is important to note that, to come within the scope of RZLT, land must be both zoned by the local authority for residential use and serviced. The intention of RZLT is to activate development of this residentially zoned and serviced land to meet critical housing needs.

It should be noted that as much as possible, it is important to treat all landowners in a similar way in relation to the application of RZLT. Consequently, if we were to exempt one group of landowners such as farmers, whilst applying the tax to others who may have equally compelling reasons from an economic activity perspective to seek an exemption, there is a risk of a legal challenge to the legislation.

As with all taxes, RZLT is under regular review by officials in my department and any changes would be considered as part of the annual Budget and Finance Bill cycle. As the Deputy will be aware, it is a long-standing practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.