Property tax is currently assessed according to real estate appraisals dating from 2001, but in a few years, the rates are expected to jump.
Depending on the municipality and the zoning of the plot, it currently ranges from 0.1 to 2.5 percent of land value, writes Eesti Päevaleht.
Environment Minister Keit Pentus-Rosimannus said there will be no more waves of countrywide appraisals, and land value and price will be determined on the open market on a day-to-day basis, not by a separate bureaucratic procedure.
That doesn't mean that tax rates will necessarily rise, as municipalities have the power to set ceilings on property tax rate. But many local governments, chronically tight on cash, could see it as a tempting revenue source, writes the daily.
Currently up to 1,500 square meters of land under a primary home are property tax-exempt. Some municipalities also grant exemptions to pensioners and people who suffered Soviet-era repressions.