HELSINKI: Property taxes will bring an earning of almost euro 1.7 billion for municipalities this year, according to preliminary statistics from the Tax Administration. The amount is euro 42 million higher than the last year. The municipalities are yielding more revenue this year because taxes have risen in 41 municipalities.
The permanent housing tax rate has risen in 32 municipalities, and other residential building taxes have risen in 54 municipalities. Taxes for power plants rose in 65 municipalities. Most property tax revenue comes from buildings. Land accounts for about one-third of the revenue.
Property tax is based on the value of the land and buildings, which the property owner must pay to the municipality where the property is located. About 43 percent of property owners pay less than euro 170 per year in taxes.
Three percent do not pay anything because their taxes remain less than 17 euro. New real estate decisions will be sent out this month. There are over two million property tax decisions in all.
