Government approves changes to land tax
The government approved the amendments to the Land Tax Act in an e-session and will send them to the Riigikogu for discussion.
The amendment will give local authorities more discretion in setting land taxes, according to the government.
Land tax is the only property tax that has remained since 2012. Following a reassessment two years ago, the value of land also increased.
With the amendment, the government will increase the maximum tax rate on residential and agricultural land from 0.5 percent to 1 percent of the taxable value of the land starting next year.
However, this is not an automatic increase, as the final decision on the tax rate is made by the local government.
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Editor: Merili Nael, Kristina Kersa
