New residential zoned land tax ‘is simply not affordable’ says Limerick councillor
A FINE Gael councillor in Limerick has urged government to scrap a new land tax amid a cost-of-living crisis.
Councillor Liam Galvin of Abbeyfeale said the new Residential Zoned Land Tax is simply “not affordable” for people at the moment.
The annual charge, which will apply from next February onwards, is calculated at 3% of the market value of land.
It was introduced as part of Budget 2022 with the aim of activating land for residential development to increase the number of homes across the State.
But councillor Galvin, a farmer by trade, feels while it might be appropriate in larger areas, it will adversely impact landowners in more rural areas.
“I understand why it was brought in. It should be brought in for strategic sites in the larger cities. I’ve no issue with that, where you have greenfield sites lying idle which should be developed,” the former mayor said.
However, he said there are some patches of land which are zoned residential which “haven't a chance of being developed for the foreseeable future.”
“That landowner is now expected to pay the residential tax on land which he or she doesn't have control over,” he said.
Some farmland which might have been historically zoned for residential might be impacted, the councillor fears.
“Are we going to tax the land that a farmer is farming? Land where he is producing a product, be it beef or milk. Are we going to tax a farmer for doing that job? I cannot stand over that,” Cllr Galvin added.
Members of the Newcastle West municipal district have already written to government asking for the new charge to be reviewed.
Councillor Galvin said: “I'm calling for this tax to be abolished. We now clearly have a different set of circumstances to when this was originally brought out. It’s not affordable, it’s not workable, and I'd ask government to consider scrapping the idea.”