Draft Land Tax Act (582 SE) - First Reading
Session: 15th Estonian Parliament, 5th session, plenary session
Date: 2025-04-16 19:46
Participating Politicians:
Total Speeches: 35
Membership: 15
Agenda Duration: 50m
AI Summaries: 35/35 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Isamaa faction initiated draft law 582 on the property tax law primarily focused on criticism and debate regarding whether and how local governments' tax benefits and the 10% minimum property tax increase are reasonable and fair. The draft law aimed to restore the 2024 redaction and eliminate the “cuts” where a new amendment could lead to significantly larger tax changes for both local governments and homeowners. During the debate, the broader question arose: does the state trust local governments, and does the law provide clear-cut boundaries for exemptions and taxation, and how an explanatory note might influence “cuts” and interpretation. Key concerns expressed by speakers were whether the 10% minimum increase is guaranteed if local governments fail to make decisions, what guarantees equality of treatment, and what burden of economic costs might fall on property owners in both extraordinary and ordinary circumstances. The discussions revealed a deep confusion among both ministers and officials regarding the interpretation of the law, raising the question of whether the state or a local government is best suited to distribute resources among the population. Another part of the debate focused on the limited cooperation between parliament and the government, and whether the rush and changes made in the current situation were consistent with the principles of the rule of law. The formation of property tax revenue projections and the anticipated impact of exemptions for specific target groups were also critically examined. Ultimately, the conclusion was reached that the draft law is not suitable for consideration in its current form and should be rejected to maintain the balance of interests of local governments and homeowners and to prevent the rapid imposition of unreasonable burdens.
Decisions Made 1
The Riigikogu rejected the draft bill proposed by the leadership committee on its first reading; the bill is dropped from consideration. Voting results: 44 in favor, 12 against, 0 abstentions.
Most Active Speaker
The most active was Aivar Kokk (Isamaa faction), who represented and repeatedly raised the content of the bill and its consequences for local governments and homeowners. He is from the right-wing political spectrum and a member of the faction.
Aseesimees Arvo Aller
AI Summary
We are moving on to the sixth item on the agenda, where the first reading of the land tax act bill No. 582, initiated by the Isamaa faction, will take place, with Riigikogu member Aivar Koka presenting.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk said that the aim of Isamaa's bill is to repeal the current land tax reform and restore the previous situation, in which local governments have the right and power to set land tax reliefs, in order to avoid government interference and the excessive burden on homeowners.
Aseesimees Arvo Aller
AI Summary
The vice-chairman thanked and invited Urmas Reinsalu to pose a question.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu said that 375,000 homeowners and businesses learned on March 31 about the rise in land tax, and the government forecasts by 2025 an additional tax of about 30 million euros; he recalled last year's large protest and asked whether the Finance Committee is considering taking a position on Isamaa's draft, and restoring the situation before the fast-track, and hearing the opinions of stakeholders and landowners, whose views were allowed to be brushed aside last summer, and whether anyone even dared to do that?
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk criticizes, under pressure from the committee's coalition, a rapidly made decision to halt further discussion of the draft bill, stresses that incentives should cover more than three groups and reach up to 1000 euros, notes that doubling the land tax base and a 10% increase in any case is bad, and hopes that supporters of the draft from local governments and Isamaa will understand this and back it.
Aseesimees Arvo Aller
AI Summary
Arvo Aller closed the Q&A session, thanked the audience, and announced that next we would hear the discussion that took place in the leading committee, led by the chair of the Finance Committee, Annely Akkermann.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann explains that the Finance Committee discussed the Land Tax Act draft No. 582, but the Government of the Republic decided unanimously on March 20 not to support the draft, emphasizing that the changes are justified and the transition is smooth, and that land tax revenues will rise in 2025 by an average of about 40%, and that local municipalities will have discretion over tax rates and reliefs; the draft will be placed on the plenary agenda on April 15 or it will be rejected, and the representative of the leading committee is the speaker here.
Aseesimees Arvo Aller
AI Summary
The vice-chair thanked the audience, said that there were questions, and asked Urmas Reinsalu to take the floor.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu thanked them for the thorough analysis and asked whether the projected 38% higher land tax receipts for 2025 and about €80 million still constitute a credible forecast, and how large the consolidated land tax receipts for 2026 would be under the current land tax rates.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann notes that she does not know the answers and that the solution requires computation and a review of the databases.
Aseesimees Arvo Aller
AI Summary
The vice-chair asks Mart Maastik to speak.
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Mart Maastik asks why changing the principles of land taxation gave municipalities a tool to increase their revenue base, and it was added that the land tax would rise by at least 10% each year, and he asks for an explanation why the state knowingly burdens citizens by 10% every year.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann said that the 10–100% range was added only for the year 2025 and may be changed after that; this was not discussed in the commission and she cannot answer precisely.
Aseesimees Arvo Aller
AI Summary
Vice-chairman Arvo Aller asks Peeter Ernitsat to come and speak.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits asks Aivar Kokk a straightforward questions: does he understand the course of land tax affairs, and why did the Government of the Republic give him a harsh assessment, and has he lost his competence or is it simply a mismatch of colors.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Although the committee did not discuss it, it is understandable that Aivar Kokk does not like this new land tax concept.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller invited Aivar Kokk to speak.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk asked several questions about the draft bill: whether, starting in 2026, there is an obligation to increase by at least 10% and whether this rise is automatic or depends on the municipality; whether the up-to-€1,000 discount is intended for pensioners, people with disabilities, and victims of political repression, or for everyone; and whether we have been lied to twice, both when the previous draft was adopted in the committee and during its discussion in the chamber.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann said that a land tax exemption of up to €1,000 is a very large amount, and lawyers have found that it could be given to everyone, and local governments could additionally provide exemptions for pensioners and for victims of repression.
Aseesimees Arvo Aller
AI Summary
This speech is merely a plea to invite Aivar Kokk.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk emphasizes that the law clearly states that local authorities have the right to determine an additional tax relief of up to 1000 euros for certain target groups, and the explanatory note is not the law.
Aseesimees Arvo Aller
AI Summary
The vice-speaker Arvo Alleri's speech consisted of only one word: "Question".
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk said that in 2025 it will rise to only 50%, in 2026 it will reach 100%, and thereafter it will remain at 100%.
Aseesimees Arvo Aller
AI Summary
The speech was simply an expression of gratitude.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk asks how one can defend it or be against the draft bill when it is still unclear.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann recommends drafting a bill to clarify this provision.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits notes that the commission has not managed to talk things through among themselves, and the issue of land tax should not be divided in such a way that one side would be pleased like a mother and the other like a daughter.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller invites Peeter Ernits onto the stage.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
In the presentation, Lemmi Oro's stance was that the land tax should be based on the market value of the land; local authorities will be able from the coming year to increase the tax rate and the cap (10–100%), set a tax relief of up to 1000 euros, and add exemptions for pensioners and those who were repressed, although the tax is national, it is essentially a local-level tax, as explained by a Ministry of Finance expert—and I support his explanation.
Aseesimees Arvo Aller
AI Summary
Arvo Aller announced that the questions have been concluded and that negotiations have been opened; on behalf of the Isamaa faction Urmas Reinsalu asked for extra time, and the speaker requested three additional minutes.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu criticized the hastily enacted land tax act, which in 2025 would bring a tax increase of up to 50% and in 2026 up to 100%, abolish the nationwide land tax exemption, and raise the tax burden on homeowners, real estate owners and landowners as well as on businesses, and the Isamaa proposal is to repeal the law and restore the previous land tax with a flatter rising slope and the nationwide exemption, emphasizing that trust must be restored by admitting mistakes.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller thanked and brought the negotiations to a close; before discussing the leading committee's proposal, Peeter Ernits presented a procedural question.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits expresses surprise and asks whether Kaja Kallas is a man, discussing gender as a social construct, and Urmas Reinsalu tries to explain the situation to the audience in the hall.
Aseesimees Arvo Aller
AI Summary
He informs that the steering committee wishes to reject Draft Bill 582 at its first reading, and puts it to a vote and begins its preparation.
Aseesimees Arvo Aller
AI Summary
The Riigikogu adopted the proposal with 44 votes in favour, 12 against, and 0 abstentions, and Draft Bill 582 was rejected and dropped from consideration.