The Chancellor of Justice sought to amend the Motor Vehicle Tax Act and the Traffic Act. He argued that it is unfair to pay the tax for an entire year if the vehicle is stolen or destroyed. He also found that the procedure for the registration fee is not clearly stated in the law.
The Riigikogu amended the law on November 12. The new law allows for the reduction or refund of the motor vehicle tax if the vehicle is not used. However, the registration fee part of the law was not changed. The Chancellor of Justice appealed to the Supreme Court, arguing that this part of the law was unconstitutional.
The Supreme Court did not agree with the Chancellor of Justice. The court explained that the registration fee does not depend on the vehicle's usage period. It is a one-time fee that contributes to the selection of more environmentally friendly vehicles. The theft or destruction of the vehicle does not change this.
The court found that refunding the registration fee would be a tax benefit. The law may allow this, but its absence does not violate the constitution. The court also stated that the law does not treat vehicle owners unfairly if they lose their vehicle.
The Chancellor of Justice argued that the Traffic Act is not clear enough regarding the amount of the registration fee. The Supreme Court found that this, too, is not unconstitutional. The court stated that the amount of the registration fee can be disputed if the owner agrees to it.