On 3 October 2026, Chancellor of Justice Ülle Madise filed applications with the Supreme Court (Riigikohus) to declare infrastructure fees (taristutasu) in Loksa City, Jõelähtme Parish, and Viimsi Parish null and void. The fees, ranging from €0.50 to €2.00 per square meter of taxable land annually, were adopted under the Local Taxes Act (RT I 2026, 8, 12) but allegedly violate the principle of benefit correlation — charging landowners for infrastructure not directly serving their properties. Previous rulings (Riigikohus 3-3-1-45-25) invalidated similar fees in Tallinn and Tartu for lack of individualized benefit assessment. The Chancellor argues these municipalities used taristutasu as a de facto land tax supplement, circumventing statutory rate caps.
Key Takeaways
- Benefit Nexus Required: Infrastructure fees must fund specific, identifiable improvements benefiting the charged properties; general revenue raising is impermissible.
- Growing Jurisprudence: This is the 7th municipal fee challenged in 2026; 5 prior cases resulted in annulment.
- Fiscal Gap Risk: If annulled, the three municipalities face combined revenue losses of €1.8M annually, potentially triggering service cuts or emergency rate hikes.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement