First reading of the Bill amending the Land Tax Act (437 SE)
Session: 15th Riigikogu, 3rd session, plenary session
Date: 2024-05-29 17:03
Total Speeches: 101
Membership: 15
Agenda Duration: 1h 40m
AI Summaries: 101/101 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The first reading of Draft Act 437, initiated by the Government of the Republic, concerning the amendment of the Land Tax Act, was presented to the Riigikogu. The aim of the draft act is to increase the autonomy of local governments in determining the size and growth limits of the land tax, and to create a more flexible framework that takes regional differences into account. It stipulates that starting from 2025, the maximum rate based on the taxable value of residential land will increase from 0.5% to 1%, and for other land, from 1% to 2%; the maximum rate for agricultural land will remain at 0.5%. Starting from 2026, local governments will be able to decide the annual growth limit, ranging from 10% to 100% of the previous year's land tax, and the area-based exemption will be replaced by a sum-based exemption between 5 and 1000 euros; the exemption for elderly homeowners will be retained. The draft act also includes some clarifications regarding the tax exemption for land under public buildings owned by the state, and emphasizes that it is possible at the local level to better assess regional needs and maintain an optimal tax burden.
Decisions Made 1
The first reading concluded; the Estonian Centre Party, Isamaa, and EKRE submitted an identical motion to reject Bill 437 during the first reading. The voting result was: 18 in favor, 52 against, 0 abstentions. Consequently, the motion failed to gain support and the first reading proceeded; the deadline for submitting amendments is June 5th at 5:15 p.m.
Most Active Speaker
The most active speaker: Aivar Kokk (Isamaa faction). He spoke repeatedly and frequently through submitted questions and critical assessments, demonstrating a strong right-wing position and emphasizing points concerning the autonomy and financing of local governments. Position: Right-wing (Right) in the Riigikogu.
Aseesimees Toomas Kivimägi
AI Summary
The first item on the agenda is the first reading of Draft Act 437, amending the Land Tax Act, which was initiated by the Government of the Republic. The rapporteur, taking the floor before the Riigikogu, is Regional Minister Piret Hartman.
Regionaalminister Piret Hartman
AI Summary
The Government submitted Draft Act 437, which amends the Land Tax Act, to the Riigikogu for its first reading. They explained that the land tax is currently the only property tax being utilized, and despite being classified as a state tax, the revenue is collected entirely by local government budgets.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi calls for silence in the chamber.
Regionaalminister Piret Hartman
AI Summary
Regional Minister Piret Hartman said that starting in 2026, local governments will gain greater decision-making power over land tax. The limits on maximum rates will be modified, and area-based exemptions will be replaced with sum-based exemptions, which increases flexibility for improving the quality of local services and includes protection mechanisms to prevent rapid increases. The impact on entrepreneurs is estimated to be small.
Aseesimees Toomas Kivimägi
AI Summary
The presenter is thanked, the audience has questions, and Aivar Kokk is invited to answer.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk accuses the Finance Committee and the Riigikogu of lying regarding the land tax increase, claiming that the law mandates an annual rise of at least 10% (10–100%). He further states that land tax exemption will not be possible starting from 2026, and that the only available measure is financial support for pensioners and people with special needs, rather than the abolition of the land tax itself. Finally, he asks why local governments are not trusted.
Regionaalminister Piret Hartman
AI Summary
Regional Minister Piret Hartman explains that the calculation of land tax is complex and depends on the taxable value, the tax rate, and the established limits. Furthermore, in the next/upcoming period, a growth restriction will be imposed so that the land tax does not rise too quickly (the final increase depends on the local government's decisions regarding the tax rates), and they have the option to apply a land tax exemption ranging from 5 to 1000 euros.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi emphasized that we should speak in turn, informed everyone that the minister is currently responding, and asked whether we should continue or take the next question.
Regionaalminister Piret Hartman
AI Summary
Piret Hartman turns her attention to the next question.
Aseesimees Toomas Kivimägi
AI Summary
The only request in this discussion is to invite Andres Metsoja.
Andres Metsoja
Profiling Isamaa fraktsioonAI Summary
In his presentation, Andres Metsoja highlighted that during the COVID period, there was an attempt to grant property tax relief to Pärnu businesses, but the law is rigid and cannot be implemented. Meanwhile, exemptions are currently in effect for owners of protected lands, meaning local governments do not receive property tax revenue from these areas. Therefore, a plan must be developed to compensate for the resulting loss of tax income.
Regionaalminister Piret Hartman
AI Summary
Regional Minister Piret Hartman confirmed that the draft legislation increases the autonomy of local governments and gives them the opportunity to increase revenue and retain residents, stressing that nature conservation issues fall under the competence of the Ministry of Climate and that tax increases result from land valuation.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi called upon Urmas Reinsalu to speak.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu accuses the coalition of breaking its promises and faults the bill for its minimal impact, stressing that it affects 560,000 homeowners. He demands a concrete projection for the increase in national land tax revenue nationwide and asks whether the bill allows for the full implementation of an area-based exemption under the scope of municipal autonomy.
Regionaalminister Piret Hartman
AI Summary
Regional Minister Piret Hartman said that she took the Private Forest Union’s protests very seriously. The central focus was on what happens to forest owners’ land given the impact of restrictions imposed due to environmental protection and land tax. She has held consultations with agricultural organizations and is currently preparing analyses, the final results of which will be revealed later.
Aseesimees Toomas Kivimägi
AI Summary
Minister Urmas Reinsalu understood the question and is responding.
Regionaalminister Piret Hartman
AI Summary
Regional Minister Piret Hartman noted that the maximum possible increase could be up to 20 million, and the final tax rate will depend on the decisions made by local governments by October 1st. She also indicated that, regarding forest land, taxes requested could be up to 2.5 million less than the previous year.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi invites Anastassia Kovalenko-Kõlvart to ask a question, and Urmas Reinsalu continues speaking.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart criticized the draft bill, stating that it places local governments in a rather significant bind and that they only desire an increase in the revenue base, not supplementary support. She added that the plan to raise the land tax puts both local authorities and citizens in a difficult position. She then requested confirmation on whether her calculations were correct regarding the land tax increasing by up to 50% next year and up to 100% in subsequent years (illustrating that a 100-euro tax would become 150 euros next year, followed by 300 euros, and then 600 euros).
Regionaalminister Piret Hartman
AI Summary
Local governments want to increase their revenues, but by changing the funding system, the aim is to ensure a fairer distribution and expand the scope of autonomous decision-making. This is illustrated by the example of the land tax protection mechanism, coupled with tax benefits for residential land.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi invites Aivar Kokk to speak.
Regionaalminister Piret Hartman
AI Summary
If you have specific questions, relevant officials will listen to you and provide feedback on the calculations. Furthermore, PRIA is developing a calculator that will allow you to input your land tax and see what will happen to it under the draft bill. While this tool was not ready today, it will be completed in the near future.
Aseesimees Toomas Kivimägi
AI Summary
The Deputy Chairman invited Aivar Kokk to speak.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk criticizes the proposed land tax amendments, noting that the limits and powers granted to local governments applicable in 2025–2026 do not apply to previous years. He asks why they are not being given the same type of rights that he was given in 2011, when he was the chairman of the local government council, to exempt residential land from taxation.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi thanks Aivar.
Regionaalminister Piret Hartman
AI Summary
The proposal within the draft bill increases, effective from 2025, the maximum rate for residential land from 0.5% to 1% and the maximum rate for other land from 1% to 2%. The maximum rate for agricultural land will remain at 0.5%. Furthermore, a protection mechanism will be established, according to which the land tax cannot rise significantly in a single year: the increase may be up to 50% in the following year, and the local government will decide the maximum permissible size of that increase in the year after that.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi urged everyone to remain courteous, stop the interruptions, acknowledged the differing opinions regarding the bill's intent, and commended the minister for providing specific answers. He then requested that they proceed with the questions and move toward the second reading.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
Helir-Valdor Seeder claims that it is unseemly and vile to pit local governments against landowners, and accuses the government that the planned autonomy will increase the impact of land tax on homeowners, landowners, and farmers, and that the impact assessment does not reflect reality. Starting in 2026, the local governments' increased freedom in decision-making could multiply the land tax rate and affect hundreds of millions of euros, which is why he asks why the bill's analysis is inadequate and why you are creating conflict and diminishing.
Regionaalminister Piret Hartman
AI Summary
Regional Minister Piret Hartman confirmed that the material had been thoroughly prepared and that she was ready to meet separately and speak with the faction about the matter. She stressed that the draft legislation does not pit local authorities against residents, and the objective is to boost the capacity and resources of local governments. This includes land tax amendments and other measures designed to increase income in rural areas. Furthermore, she noted that changing the funding model is just one component of a larger strategy to ensure that funds reach beyond the "golden circles."
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi called Varro Vooglaid.
Varro Vooglaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Varro Vooglaid says that due to Euro regulations and new laws, the bureaucratic burden on local governments is increasing, and they are not being given the necessary resources. Instead, they are advised to fleece their own people. Landowners are protesting without receiving compensation, and he asks how seriously the government is actually taking this concern and whether the rhetoric matches reality.
Regionaalminister Piret Hartman
AI Summary
Regional Minister Piret Hartman said that the draft bill does not automatically mean raising the land tax, but rather gives local governments more autonomy, and she intends to continue a meaningful dialogue with agricultural and forest owners and cooperate with the Ministry of Climate to solve the problems.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi invites Andre Hanimägi to take the floor.
Andre Hanimägi
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Andre Hanimägi emphasized that the failure to conduct the regular valuation of land has persisted for over 20 years, causing severe impacts regarding the land tax in the current draft bill. He then asked whether his understanding was correct and how exactly this omission affects the draft legislation.
Regionaalminister Piret Hartman
AI Summary
Regional Minister Piret Hartman stated that although the valuation primarily impacts land tax, it doesn't significantly affect the current draft bill. The next valuation is scheduled for 2026, with its effects being felt in 2028. However, she believes that valuations should occur more frequently because the value of land has risen approximately 8.3 times over the past 20 years, which enables both property owners and local governments to plan more effectively.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Speaker Toomas Kivimägi invites Arvo Aller to the stage.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Arvo Aller points out that although the idea of regular land valuation is sensible, the detailed implementation plan is lacking, local governments are being given the opportunity to appropriate people's financial resources, and feedback is not being sought, as demonstrated by today's protest by the Private Forest Association and landowners.
Aseesimees Toomas Kivimägi
AI Summary
The speech was very short and ended with thanks.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
He emphasized that they had not been asked to provide their opinion, citing the Central Union of Estonian Farmers and the Estonian Private Forest Association as examples.
Regionaalminister Piret Hartman
AI Summary
It is reported that the existing draft bill is being amended (meaning a completely new proposal is not being developed). The ministry has thoroughly prepared these amendments, taking various stakeholders into account. And while the agricultural sector had pushed for a tax increase limit of 10% (rather than 50%), the government managed to reach a compromise and the bill proceeded.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi asks Priit Sibul to take the floor.
Priit Sibul
Profiling Isamaa fraktsioonAI Summary
Priit Sibul criticizes the government's compromises, which he feels are detached from the people, and raises questions in the context of the land tax bill, asking whether the 10–100% limit set by the local council is appropriate, how much land ownership would change, and how much revenue would be collected from it.
Regionaalminister Piret Hartman
AI Summary
Regional Minister Piret Hartman confirmed cooperation with the stakeholders and the autonomy of local governments in deciding on increases, and invited people to reach out if they have concerns, illustrating this with the example of land tax, where the 2023 tax of 180 euros is not permitted to increase beyond 198 euros in 2024.
Aseesimees Toomas Kivimägi
AI Summary
He/She posed a question to the esteemed Minister about the situation in 2025.
Regionaalminister Piret Hartman
AI Summary
Starting in 2025, the maximum increase in land tax may be up to 50%. However, this applies only if the land tax rate, when multiplied by the established limit, results in a higher amount; otherwise, there will be no increase.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Chairman Toomas Kivimägi addresses a brief request to René Kokk.
AI Summary
Rene Kokk criticized the obligations imposed by the state on local governments without sufficient funding, arguing that under the guise of autonomy, local authorities might start raising money themselves by increasing the land tax, and he asked the minister if this was a reasonable solution.
Regionaalminister Piret Hartman
AI Summary
Regional Minister Piret Hartman announced that some local municipalities had seen a drop in taxable land revenue this year, which the state compensated with one million euros. She added that moving forward, even more resources must be invested in regional policy because costs are rising faster than revenues. Furthermore, the funding system has been made fairer, and she calls on everyone—including those who do not live in Tallinn or Tartu—to participate in making state budget decisions and funding regional policy in cooperation with other ministries.
Aseesimees Toomas Kivimägi
AI Summary
At the beginning of the speech, Helir-Valdor Seeder is addressed.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
Helir-Valdor Seeder argues that the draft bill is substandard and contradicts the principle of legal certainty stemming from the constitution, as the land tax is higher around larger cities, thereby increasing the disparity in local government revenue bases. This is despite the fact that a recent amendment to the Land Tax Act established a 10% limit on annual growth. He asks why this issue has not been analyzed and what the minister’s position is on the matter.
Regionaalminister Piret Hartman
AI Summary
The previous agreements regarding next year's threshold were different, but today, after negotiating with various stakeholders, we had to reach a compromise. We tried our best to take into account the agreements and discussions from previous periods, but the draft is now in its current form, and fully accommodating the wishes of all parties is not always feasible.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
This speech emphasizes that raising the land tax puts local governments in an awkward situation involving the risk of residents leaving, and it condemns the abolition of the tax exemption for land under one's home, asking where such a fundamental change came from.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi invites Anastassia Kovalenko-Kõlvart to the stage.
Regionaalminister Piret Hartman
AI Summary
Regional Minister Piret Hartman stated that local governments have the right and opportunity to decide for themselves whether and how to implement incentives for the taxation of residential land; the state neither prohibits nor mandates this, and this principle will apply the same way this year and next year, taking into account local variations and residents' ability to pay.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi emphasizes that rebuttals are not permitted at the current stage, and they must proceed with the negotiations, during which it will be possible to speak and respond. He then admonishes Aivar Kokk, asking him to maintain his dignity and refrain from interrupting the minister while the latter is giving his answer.
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Maastik emphasized that the revenue base of local governments is not increasing, and they lack sufficient resources without raising the land tax, which is why they are forced into a tax hike, because the state is raising all taxes and local governments must keep pace with that.
Regionaalminister Piret Hartman
AI Summary
Regional Minister Piret Hartman stated that local government budgets are failing to keep pace with rising costs. Although ministries are developing several measures—such as the 110-million-euro infrastructure measure and options for utilizing local taxes, including income tax and land tax—and are attempting to involve other ministries, the situation on the ground remains challenging. Therefore, proposals are being sought to either increase funding or prevent cost reductions.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi asked Arvo Aller to come forward and take the floor.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Arvo Aller points out that the law permits a land tax increase of 10 to 100 percent—with increases below 10 percent being excluded—but the fulfillment of state obligations places an additional burden on local municipalities. He questions whether raising the land tax is truly necessary or if it simply constitutes yet another burden for local governments.
Regionaalminister Piret Hartman
AI Summary
Regional Minister Piret Hartman emphasizes that 10–100% is not an increase, but a growth restriction, and local governments do not have to pay that much. If the land tax actually rises, a growth limit is established, and the land tax is not permitted to rise further. She also requests specific references to places where additional promises are being made but no budget is allocated, because if obligations are added, resources must also accompany them.
Aseesimees Toomas Kivimägi
AI Summary
The only request in the discussion is to invite Madis Kallas.
Madis Kallas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Madis Kallas notes that former city mayors and municipal leaders have long desired greater financial autonomy, and asks the minister whether he has gotten the impression that they cannot be trusted or if they are viewed as equal partners of the state.
Regionaalminister Piret Hartman
AI Summary
Regional Minister Piret Hartman said that the meetings with local governments and the association of cities and municipalities have been sincere and straightforward, that trust exists between them, that concerns have mainly come from farmers, and that the autonomy local governments are now receiving is awaited, and that state budget negotiations have begun.
Aseesimees Toomas Kivimägi
AI Summary
The speaker commended the last question and then turned to Anti Allas with a request.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas criticized the populism spreading on the left wing of the Isamaa party. He pointed out that poverty persists in remote municipalities and services fail to reach an adequate standard. He stated that today marks a small step that could provide local governments with a little extra revenue, allowing each municipality and community to decide for themselves whether they have the capacity for such a move, while simultaneously confirming that the land tax would not increase in his home region.
Aseesimees Toomas Kivimägi
AI Summary
Question time has ended, and the Minister was asked to provide a comment or response.
Regionaalminister Piret Hartman
AI Summary
Regional Minister Piret Hartman said that tables and calculations must be reviewed together with members of the Riigikogu to ensure that regional and social disparities do not widen, and that the land tax is part of the agreement for better establishment of regional fairness, although the changes are a step in the right direction, the process is still only beginning, and much work lies ahead.
Aseesimees Toomas Kivimägi
AI Summary
This is just the first reading; we have time for the second reading and for amendments, and if we can justify and defend them, the issue can be withdrawn.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
Helir-Valdor Seeder claims that they cannot be separated because they are interconnected.
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The speech contains only one question: May I answer?
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi says that you can ask, but he is not allowed to answer.
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Mart Maastik is criticizing the plan to raise the 2026 land tax rate (10–100%), questioning whether such a move should be implemented from scratch. He points out that in Võru, Anti Allas decides the land tax unilaterally, whereas on Saaremaa, the local council handles the decision. He also confirms that Isamaa is a right-wing party, not a left-wing one.
Regionaalminister Piret Hartman
AI Summary
Regional Minister Piret Hartman stated that the amendment proposal allows for discussion regarding the percentage of growth or the cap, but emphasized that this does not mean the land tax will necessarily increase by that percentage. Instead, it represents a proposed limit, and the committee will discuss whether that limit could potentially be set at 0.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Speaker Toomas Kivimägi calls Jaak Aab to the podium.
Regionaalminister Piret Hartman
AI Summary
Regional Minister Piret Hartman said that the next valuation will take place in 2026 and the prices will come into effect in 2028, meaning the period will be shorter. She emphasized that the lack of valuation for 20 years is a major concern, and the rising price of land will make the land tax higher.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanks the Minister, says there are no further questions, and announces that the discussion and the commission's decisions will be presented by Finance Committee member Jürgen Ligi.
Jürgen Ligi
AI Summary
According to Jürgen Ligi, the committee discussed the matter calmly, concluded the first reading on May 16th, and is awaiting amendment proposals on June 5th. He stressed that taxes are collected from people, not from the state, and that local authorities have a justified right to collect tax on land, although minimum thresholds and connections with private owners are currently under discussion, and the context of previous land tax exemptions is also being reviewed.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi offered his thanks, stated that there were no questions, and Anastassia Kovalenko-Kõlvart then opened the debate on behalf of the Estonian Centre Party faction.
Jürgen Ligi
AI Summary
I apologize and remind you that at the time this exemption was introduced, it was opposed by the Centre Party, as well as the Social Democrats, as well as Finance Minister Ligi and a portion of the Reform Party. And now, I find it truly baffling to see such militant young communists arguing that all forms of tax collection should be outlawed.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi expresses his thanks and states that he will submit a procedural question, and then calls upon Anastassia Kovalenko-Kõlvart.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Kovalenko-Kõlvart inquires whether a statement made on behalf of the committee can simultaneously be counted as the statement of the parliamentary group (faction), and whether there is a practice that if the committee's rapporteur conveys both their personal viewpoint and the position of the faction, this is counted as both statements.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi said that the issue is acute, but it cannot be considered a statement on behalf of the faction; as the chairman, he expects focus on what was addressed in the committee, and although the discussion of the topic might have been viewed more broadly, it was entirely relevant and pertinent to the subject matter.
Jürgen Ligi
AI Summary
Jürgen Ligi asks the chairman whether he has failed to draw the line—a boundary that was discussed both at this specific committee meeting and previously on the same subject in the Finance Committee—and emphasizes that the debate should be understandable.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanked the floor and stated that he would open negotiations on behalf of the Estonian Centre Party faction, and Anastassia Kovalenko-Kõlvart requested eight minutes.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Kovalenko-Kõlvart criticizes the proposed tax amendment, which stipulates that land tax will be raised by up to 50% next year and up to 100% in subsequent years, while simultaneously abolishing the tax exemption for residential land. She argues that this poses a threat to the security of homeownership, undermines the financial viability of pensioners and young families, and exacerbates unequal funding among local municipalities. Consequently, she calls for the rejection of the draft bill during the first reading.
Aseesimees Toomas Kivimägi
AI Summary
Aivar Kokk, on behalf of the Isamaa faction, thanks and submits a request.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk accuses the minister and officials of lying and claims that the draft bill allows the annual growth limit for land tax to be set within the range of 10–100 percent by 2026, and gives local governments greater competence, which brings an additional burden to people and businesses.
Aseesimees Toomas Kivimägi
AI Summary
The announcement states that three extra minutes will be given.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
When the merger of local governments has brought most municipalities to their knees, and the debt ratio in Jõgeva municipality has risen from 15% to over 70%—during which time only one sports hall and one health center were built, even though the old Jõgeva municipality had four schools, six kindergartens, seven sports facilities, a swimming pool, and a spa—it shows how crucial economically minded leaders are. Furthermore, the state must impose conditions when granting rights to local governments. The Isamaa Party cannot agree with Bill 437 and wishes to reject it at the first reading, because funding must come from entrepreneurship and taxes, not from free state services, and raising the land tax is unjustified.
Aseesimees Toomas Kivimägi
AI Summary
Arvo Aller represents the EKRE faction and requests the floor.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Arvo Aller stated that although local governments are being granted financial autonomy, the minimum increase in land tax is 10%, and the law permits an increase ranging from 10% to 100%, which appears to be a mechanism for skimming money for local governments. He added that the development plan is deficient and public engagement remained modest, despite the measure affecting up to 520,000 landowners and about 2.5% of municipal budgets, and that revenue dropped following the previous amendment due to a calculator error.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi requested three more minutes.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Arvo Aller stated that increasing the land tax threatens food security, as it could force landowners to sell their land and drive up rental prices, which is why the faction is calling for the rejection of Bill 437 in its first reading.
Aseesimees Toomas Kivimägi
AI Summary
Madis Kallas represents the Social Democratic Party faction and submits a request.
Madis Kallas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Madis Kallas emphasized that the draft legislation grants local governments greater financial autonomy and decision-making freedom without adding additional obligations or reducing state funding. He confirmed that the tax on agricultural land will remain the same and that making projections is complicated. Furthermore, he stressed the need for more precise wording to avoid misunderstandings, and noted the time limit provided to local governments for setting the land tax (from July 1 to October 1) to enable regional decision-making.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi asks for three more minutes.
Madis Kallas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Madis Kallas stressed that the financial autonomy of local governments must be increased, and local councils need to have greater decision-making and budgetary authority. This is because the ability to raise tax rates is restricted by law, and this specific legislation creates the necessary opportunities, builds trust in local authorities, and helps reduce regional inequality.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi concluded the discussions and called for a vote on the proposal, submitted by the factions of the Estonian Centre Party, Isamaa, and EKRE, that Draft Bill 437 be rejected at the first reading.
Aseesimees Toomas Kivimägi
AI Summary
18 members of the Riigikogu voted in favor, 52 against, and there were 0 abstentions; the motion did not receive support, the first reading of Draft Act 437 is concluded, the deadline for submitting amendments is 5 June of the current year at 17:15, and we have concluded the proceedings for the first item on the agenda.