The Association of Finnish Local and Regional Authorities said on Tuesday that 119 municipalities will raise tax rates for next year, more than previously expected.
There are 416 municipalities in Finland, including 16 in the semi-autonomous island province of Åland. Three local authorities on Åland will lower taxes next year -- the only ones in the nation to do so.
The average local tax rate next year will be 18.55 percent.
Half a dozen municipalities will levy the highest rate, 21 percent. These are Karjaa and Pohja in western Uusimaa, Pelkosenniemi in Lapland and three in Oulu Province: Kestilä, Oulainen and Rantsila.
Two municipalities share the lowest rate of 16 percent: Kauniainen, an affluent bedroom community near Helsinki and Mariehamn, the capital of Åland.
The planned rate hikes will bring local government coffers an additional 80 million euros.
The biggest reason for the rate increases was the substantial pay raises negotiated with public-sector unions earlier this autumn, the Association says. The knock-on effects of the Tehy nurses' contract signed Monday will be felt by taxpayers beginning in 2009.
Of the 416 municipalities, 113 are designated as cities. Forty-four of them are officially bilingual, while 19 are officially Swedish-speaking. Sixteen of the latter are on Åland, with the rest along the coast.
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