Two county councils have given up on imposing the new vacant site levy on farmed land in recent weeks. Cork County Council has now clarified to the Irish Farmers Journal that “no levy will apply” to eligible farmed land, but its owners will remain on the name-and-shame vacant site register of land hoarders on the local authority’s website. The council has valued those lands at between €75,000/ac and €140,000/ac.

The Irish Farmers Journal has also seen successive letters from Sligo County Council to a farmer attempting to place his property on the vacant site register, then retracting the claim within the past two months. Our reporter visited the site, which comprises grazing ground and active farm machinery parked in sheds.

These examples illustrate how farmed land continues to be treated differently from one county to the next, with no co-ordinated efforts to enforce a national exemption for farmers as the first bills for the 3% levy go out this month. This will increase to 7% of the land’s valuation next year.

Outcry

Following farmer outcry earlier this year, the Government passed amended legislation through the Oireachtas in July. The Department of Housing, Planning and Local Development then wrote to all local authorities twice to clarify that “land which was purchased prior to its designation as residential land, and which continues to be operated for farming purposes, shall be exempt from the levy”.

A spokesperson for the Department did not answer questions on the number of farmed properties among nearly 300 entered into the vacant site register – 140 of them in time to pay the levy this year.

“It is a matter for each authority to implement and administer the levy provisions in their respective functional areas,” the spokesperson said.

“The legislation contains a number of independent appeal mechanisms to the board [An Bord Pleanála] and also the Valuation Tribunal,” they added. “It is a matter for each owner to engage the appeal mechanisms.”

Some local authorities, such as Kilkenny County Council, took notice of the new policy and quickly removed farmed land from their vacant site register. Others did not.

In those cases, the appeal route has not helped farmers. An Bord Pleanála rejected appeals for several pieces of agricultural land in Co Cork through July. It made one decision on 19 July, the day the President signed the farm exemption into law, and another one a week later.

One lost appeal is now before the High Court and An Bord Pleanála has obtained five postponements since September. A spokesperson said An Bord Pleanála was still working to define its legal position. The Irish Farmers Journal has not found a trace of any appeals won on foot of the farm exemption so far.

Meanwhile, it is unclear how many local authorities are continuing to put farmed land on the vacant site register to tax it in future years. Minister for Housing Eoghan Murphy said that the vacant site levy would raise an estimated €9m in 2019 and €28.2m in 2020. He was replying to a parliamentary question from Fianna Fáil housing spokesperson Darragh O’Brien TD, who noted “serious inconsistencies” in the implementation of the levy.

“Each local authority seems to be taking a different approach to rolling it out,” Deputy O’Brien said, doubting that it would address housing shortages.

Timeline

Vacant site levy and farmland: three years of chaos

  • July 2015: the Urban Regeneration and Housing Act 2015 enters into force, establishing a vacant site levy and vacant site registers managed by local authorities.
  • July 2016: the Department for Environment, Community and Local Government writes to all local authorities, saying that farmed land is liable to the levy if it has been rezoned for residential use.
  • January 2017: local authorities begin preparation of vacant site registers and start notifying landowners of their inclusion on the lists at the end of the year.
  • March 2018: the Irish Farmers Journal reveals that Kilkenny County Council has placed actively farmed land on the vacant site register. Further investigations will reveal more cases across the country.
  • April 2018: Minister of State at the Department of Housing, Planning and Local Government John Paul Phelan tells the Irish Farmers Journal that active family farms will be exempt from the levy and calls a meeting with all local authorities.
  • May 2018: Kilkenny County Council removes farmed land from its vacant site register. Minister for Housing Eoghan Murphy publicly confirms Minister Phelan’s position.
  • June 2018: Referring to the 2015 legislation and 2016 Department instructions, An Bord Pleanála inspectors recommends rejecting the appeals of several farmers against the registration of their land as vacant sites. At the same time, the Government introduces a legislative amendment.
  • July 2018: the Planning and Development (Amendment) Act 2018 enters into force, exempting active family farms from the vacant site registration and levy. An Bord Pleanála confirms the rejection of farmers’ appeals.
  • August 2018: the Department of Housing writes to all local authorities to clarify the exemption.
  • 3 October 2018: the Department circulates the same information to all local authorities again, and gives them a deadline of 1 November to notify landowners liable to pay the levy.
  • 8 October 2018: the High Court agrees to hear the first case of a farmer challenging his land’s entry into the vacant site register.
  • November 2018: owners receive levy notifications.
  • 11 December 2018: Cork County Council reveals to the Irish Farmers Journal that it will not charge the levy on farmland eligible for the exemption.
  • January 2019: levy bills are due to issue for 3% of the value of each registered vacant site.
  • March 2019: levy payment is due.