Estonia introduced a land value tax in 1993. While the tax is national, the rates annually determined by municipalities, who receive 100% of the revenue. Rates range from 0.5 to 2% of the market value of land. Agricultural land is taxed less.

“Tax revenues from land continue to rise and increased by 171 per cent between 1994 and 1999. Much of this increase arose from revaluations, raising tax rates and improvements in collection efficiency. Reportedly, the imposition of land tax has ‘encouraged some property owners who stood to benefit by keeping their land idle… either to develop it or to sell it.’”

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