Kohalike maksude seadus (KoMS)

§ 1. Purpose of Act

This Act provides local taxes, the procedure for imposition of local taxes and the requirements for local taxes.

§ 2. Procedure for imposition of local taxes

(1) A rural municipality or city council (hereinafter council) has the right based on this Act to issue regulations to impose local taxes (hereinafter tax regulation). The provisions of the Taxation Act regarding an Act concerning a tax apply to a tax regulation. Exceptions from the provisions of the Taxation Act or this Act are not established by a tax regulation.

(2) A tax regulation enters into force and is made public in accordance with the procedure provided in the Local Government Organisation Act. A rural municipality or city forwards the tax regulation to the Tax and Customs Board by electronic means or on electronic data media. A tax regulation is published on the website of the Tax and Customs Board.

§ 3. Collection of local taxes

(1) A rural municipality or city government or other rural municipality or city authority provided in a tax regulation is the tax authority for local taxes within their administrative territory (hereinafter territory), which organises the collection of local taxes.

(2) Upon the collection of local taxes, an official authorised by the council exercises the rights of the tax authority provided in the Taxation Act to the extent established by a regulation of the council.

(4) The councils of rural municipalities and cities may enter into an administrative contract between themselves by which the functions of the tax authority for local taxes of the same type established in the contracting rural municipalities and cities are transferred to a rural municipality or city authority of one contracting party.

(5) The procedure for covering the expenses related to the entry into and performance of the contract specified in subsection 4 of this section is provided in the same contract.

(6) The council and the Tax and Customs Board may enter into an administrative contract for the collection of local taxes. The expenses related to the entry into and performance of the contract are covered from the rural municipality or city budget.

§ 4. Requirements for imposition of local taxes

(1) A tax regulation must set out the following data:

1) the name of the tax;

2) the object of taxation;

3) the taxpayers;

4) the tax rates;

5) the procedure for payment of the tax;

6) the due date or term for payment of the tax, the procedure for calculation or assessment of the amount of tax;

7) the date on which the obligation to pay the tax arises;

8) possible tax incentives and the procedure for provision thereof;

9) the date of entry into force of the tax regulation;

(2) A local tax must not hinder free movement of people, goods and services.

(3) A taxable object may not be taxed with more than one local tax.

§ 5. List of local taxes

Local taxes are:

5) advertising tax;

6) road and street closure tax;

8) animal tax;

9) entertainment tax;

10) parking charge.

§ 5¹. Exemption of international military headquarters from payment of local taxes

The international military headquarters are exempt from payment of local taxes to the extent provided in an international agreement.

§ 10. Advertising tax

(1) Advertising tax is paid by natural and legal persons on notices and advertisements placed within the territory of the municipality, and on public transport vehicles registered as belonging to natural persons who reside or legal persons whose registered office is located within the territory of the municipality.

(2) The list of notices and advertisements that are subject to taxation and places for placing thereof are established by the council.

(3) Notices of state and municipal authorities and notices and advertisements relating to the election campaigns of political parties, election coalitions and independent candidates are exempt from advertising tax.

(4) The rate or differentiated rates of advertising tax are established by the council.

(5) A taxpayer is required to:

1) submit a tax return to the tax authority, the form and date for submission of the tax return is established by the council;

2) pay advertising tax into the budget of the municipality by the date established by the council.

(6) A rural municipality and city government has the right to provide advertising tax incentives and exemptions under the conditions and in accordance with the procedure established by the council.

(7) The council has the right to require the submission of advertising tax return by electronic means in case more than ten objects of taxation are declared on the return.

§ 11. Road and street closure tax

(1) The road and street closure tax is paid by natural and legal persons upon the organisation of demonstrations, parades and other events, as well as regarding construction or maintenance works, in case the closure of a public road, street, square, park, recreation area or part thereof is involved.

(2) The rate or differentiated rates of road and street closure tax are established by the council.

(3) The road and street closure tax is paid into the budget of the municipality by the date established by the council.

(4) The council is entitled to establish the form of the tax return for road and street closure tax.

§ 13. Animal tax

(1) Animal tax is paid by the owners of animals whose keeping within the territory of a rural municipality or city is subject to taxation. The list of such animals is established by the council.

(2) The following are exempt from animal tax:

1) the keeping of service animals belonging to the police, the Defence Forces, customs authorities, the Defence League and the Rescue Board and voluntary rescuers in case they are used for the performance of their service tasks, as well as the keeping of guide dogs by blind persons;

2) the keeping of animals within the territory of a rural municipality or city for up to one month.

(3) The period of taxation with animal tax is one calendar year.

(4) The rates of animal tax are established by the council.

(5) Animal tax is paid into the budget of the municipality by the date established by the council.

(6) A rural municipality and city government has the right to grant animal tax incentives and exemptions under the conditions and in accordance with the procedure established by the council.

§ 14. Entertainment tax

(1) Entertainment tax is paid by:

1) the organisers of paid recreational events within the territory of the rural municipality or city;

2) the owners of recreational establishments located within the territory of the rural municipality or city.

(2) Entertainment tax is imposed on tickets sold. Tickets for paid recreational events are subject to registration with the rural municipality or city government within the territory of which the event takes place.

(3) Entertainment tax is paid into the budget of the municipality by the date established by the council.

(4) A rural municipality or city government has the right to grant entertainment tax incentives and exemptions under the conditions and in accordance with the procedure established by the council.

§ 14¹. Parking charge

(1) Parking charge is established for the purpose of organising parking within public paid parking zones.

(2) Assessment and collection of parking charge is organised based on and in accordance with the procedure provided in the Traffic Act. The provisions of the Taxation Act apply to parking charges to the extent provided in the Traffic Act.

§ 15. Liability for violation of regulation of council

(1) Interest is calculated on the amounts of local tax paid into the budget of a municipality after the established date and on excess amounts paid by the taxpayer for the benefit of the tax authority in accordance with the procedure provided in the Taxation Act.

(2) Liability for violation of a tax regulation is provided based on the Taxation Act in the same tax regulation.

(3) Additional amounts to be paid are received in the budget of the municipality.

§ 16. Resolution of disputes

(1) A taxpayer has the right to file a challenge against a tax notice, a notice of assessment, other administrative act or act of the tax authority for local taxes. The challenge is filed with the tax authority for local taxes or other authority provided in a tax regulation. Upon processing of the challenge, the provisions of Chapter 14 of the Taxation Act apply.

(2) The tax authority for local taxes may return a challenge in the cases provided in the Taxation Act. A complaint may be filed with the tax authority for local taxes against a decision to return the challenge.

§ 16¹. Implementing provision

Sales tax and boat tax liability created prior to 1 January 2012 and the payment and collection of the above taxes is governed by subsections 3 and 5 of § 3, clauses 3 and 4 of § 5 and §§ 8 and 9 of this Act valid until the specified date.

§ 17. Amendment of Taxation Act

[Omitted from this text.]

§ 18. Amendment of Code of Administrative Offences

[Omitted from this text.]