Landowners need 'leeway' over residential land tax

Landowners have been receiving demands from the Revenue Commissioners for the Residential Zoned Land Tax (RZLT) but do not believe their land falls within residential zoning, according to a local councillor. 

The RZLT was introduced in the Finance Act 2021 and is aimed at activating serviced and residentially zoned land for housing. On its website, Mayo Co Council says "the tax for 2026 will be due from February and payable from 23 May 2026".

However, Claremorris-based Cllr Richard Finn told a recent meeting of Mayo County Council's Planning and Corporate Development Strategic Policy Committee (SPC) that he couldn't understand why landowners were receiving demands from the Revenue Commissioners when the council "hadn’t finalised our plans yet". 

“Do they have to pay the demands for this year until such time as we have our house in order?" Cllr Finn asked. 

Senior Planner John McMyler told Cllr Finn: “The truth is I don’t know as the planning section does not deal with Revenue directly, but any variation on zoning to the Mayo County Development Plan is likely to occur in September or October. The planning section just draws up the map, but I don’t know anything in relation to Revenue.” 

Cllr Cyril Burke said a lot of farmers and landowners in small villages such as Turlough, Balla and Belcarra, as well as parts of town centres, have also been designated as residential zones for building houses on because they are connected to water services.

"But a lot of areas of land within those villages, it is not even possible to build houses on. Some of this land is just hills and floodplains and I can’t understand why they should be liable for it if you can’t build on it. That is something we have to deal with as soon as possible and there is an onus on us to come up with some formula, and I also think there is an onus on Revenue to give some leeway. Some of those people are actively farming those lands in Turlough Village but they are zoned for RZLT even though there will never be a house built on them.” 

Cathaoirleach Cllr Michael Burke said he knew of cases where people had been helped by Revenue and recommended that anyone seeking help should first get in touch with them.

• Published as part of the Local Democracy Reporting Scheme.