Estonia, Financial Services, Real Estate, Taxation
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Friday, 29.03.2024, 07:33
Estonia's Tartu raises land tax rate
The motion was passed by a vote of 30 to nine, the city
government said.
The rate of the land tax in Tartu in 2002-2018 was 1% of the
taxable value of land, the lowest such rate among the municipalities of Estonia
at present.
Under law, the rate of land tax can be from 0.1 to 2.5% of
the taxable value of land per year.
The rate of tax was raised because from 2019 onwards, the state
takes land tax receipts into account to the maximum possible degree in the
allocation of money from the equalization fund meant for harmonizing the
opportunities for performance of the municipality functions of towns and cities
and rural municipalities.
The budget of Tartu for 2019 envisages receipts of land tax
in the amount of slightly over 1.5 mln euros, some 800,000 euros more than this
year.
Starting from 2013, across Estonia, up to 1,500 square
meters of land in high density areas and up to 20,000 square meters of land in
low density areas land belonging to owners whose registered place of residence
is on the same land plot is exempted from the land tax. Besides, Tartu applies
an exemption of 25 euros to pensioners, victims of repressions and people
having partial or no work ability.