Starting this year, local governments can increase the land tax by 10-100 percent. The city of Tartu plans to increase the land tax by up to 50 percent starting next year and until 2028. The land tax on each plot will not increase by more than 50 percent annually.
The city government wants to set a tax rate of 1% for residential land and farmyard land. For other agricultural land, a rate of 0.5% is proposed, and for land with unspecified purposes, a rate of 2%. This is calculated based on the value of the land. Tartu residents will receive a tax exemption for home land up to 500 euros.
Tartu Deputy Mayor Meelis Leidt (Isamaa) says that the change in the funding model for local governments will take 14 million euros from the city budget. The increase in the land tax will bring 1.7 million euros to the city budget next year. In 2026, 5 million euros will be collected from the land tax. By 2028, the city will receive over 11 million euros from the land tax.
The Eesti 200 faction believes that the maximum allowable expenses and land tax money should go towards road and street maintenance. City council member Pärtel Piirimäe (Eesti 200) wants the additional money to go towards sidewalk maintenance. He emphasizes that Tartu's sidewalks are in poor condition in winter.
Nationalists and conservatives also agree that the money should go towards the benefit of the people. City council member Silver Kuusik (EERK) believes that the money should go to places that ensure greater satisfaction and better understanding of how the local government uses the money. He thinks that expenses should be limited because currently, unnecessary and questionable value projects are being carried out.