Concerns raised in Galway about the impact land tax is having on farmers
Elected members at County Hall discussed the “anomalies” in the Residential Zone Land Tax (RZLT) scheme, which they say are unfairly affecting certain landowners.
The RZLT applies to undeveloped land in residential zones to encourage development, while the Local Property Tax (LPT) applies to owners of completed residential properties.
Councillors argued that the RZLT disproportionately impacts farmers, prospective homebuilders, and landowners who depend on their property for economic activity.
Their discussion followed what was described as a “positive” update on LPT baseline funding, which is projected to increase by €1.5 million in 2026. However, Chief Executive Liam Conneally cautioned that “it’s not where we need to be”.
Cllr. Alan Harney acknowledged that the purpose of the tax is to encourage the development of vacant land to boost Galway’s housing capacity but noted that taxing vacant land owners with no intention to develop is “a very different position than families who own a farm”.
The Residential Zoned Land Tax (RZLT), introduced under the Finance Act 2021, is guided by a series of published maps outlining which lands are subject to the tax. Properties must meet six specific criteria to fall within its scope.
Residents who wish to be exempt from the tax had the opportunity in April 2025 to submit their appeal for the 2026 year.
We are “left in a conundrum,” Senior Planner Valerie Loughnane said, between the framework of the scheme and how the council is supposed to handle applicants asking for the exemption.
She states that out of the 38 submissions to the final maps in 2023, 14 of them relate loosely to zone issues.
The local authority reached out to submissions needing clarification to confirm whether they were seeking rezoning or tax exemptions. Any rezoning endeavours will have to come through the chamber in the statutory process.
Most of them stated they were actively seeking exemptions for land that has economic use.
Mr. Conneally said: “The only way to deal with this issue is to get into the weeds” when it comes to identifying zones and the potential of new housing developments, “the only supply of housing we have control over are those sites we have ourselves,” referring to the land owned by the council.