On Tuesday, a commission that communicates between the government and the Estonian Council of Churches gathered. They also discussed the land tax for places of worship. The Ministry of Finance noted that at the end of last year, the law was misinterpreted.
The president of the Estonian Council of Churches, Urmas Viilma, said that the new legal interpretation has caused problems. Previously, the entire property under a place of worship was exempt from land tax. Now it is interpreted that only the land directly under the church is tax-exempt. The remaining property around the church becomes taxable.
Viilma mentioned that the annual land tax amounts for larger churches range from three to five thousand euros. For example, the land tax for St. Olaf's Church is nearly 5000 euros. Congregations cannot request compensation from the city because the land tax for places of worship has only just been introduced.
Tallinn Deputy Mayor Karl Sander Kase said that in addition to the change in interpretation, the land tax protection buffer also increased from 10 percent to 50. This protective mechanism disappeared, making it harder for churches. Kase believes the land tax law needs to be changed.
According to Viilma, the council is waiting until the new Tallinn city government is formed. Then they will start discussing possible compensation solutions. He asked why not continue the current interpretation until the law is changed.
Kase mentioned that churches own large lands throughout Estonia. Therefore, this is a nationwide problem that requires a solution at the national level. The Minister of the Interior could propose a retroactive change to the law.