REPUBLIC OF LITHUANIA                                     
                                                                                
                               LAW                                              
                                                                                
                                                                                
                           ON LAND TAX                                          
                                                                                
                                                                                
         1. The Object of Taxation and Taxable Entities                         
                                                                                
                           Article 1.                                           
                                                                                
     Land shall  be taxed. Land shall be divided according to its               
use into:                                                                       
1) land used for agricultural purposes; and                                     
2) non-agricultural land.                                                       
                                                                                
     Article 2.                                                                 
                                                                                
     Land owners and land users (natural and legal persons) using               
land on  the territory  of the  Republic of  Lithuania, which has               
been allotted  to them by State bodies or  which they  possess by               
right of ownership, shall be liable to  land taxation.                          
                                                                                
     2. Tax Rates and the Procedure for their  Establishment                    
                                                                                
     Article 3.                                                                 
                                                                                
     Taxes   shall be  imposed on   land  used  for  agricultural               
purposes as follows:                                                            
     1) for  agricultural  land  -  at  the  basic  tax  rate  as               
prescribed by Supplement 1;                                                     
     2) for  agricultural land  in   zones 1  and 2  of the karst               
region -  at a rate  2 times lower than the basic rate prescribed               
by Supplement  1; for  agricultural land  in zones 3 and 4 of the               
karst region -  at the minimum tax rate;                                        
     3) for  forest land  -  at a tax rate 5 times lower than the               
basic rate prescribed by Supplement 1; for all other taxable land               
- at  a tax rate 10 times lower than the basic rate prescribed by               
Supplement 1.                                                                   
     No tax  shall be  imposed on  precipices, karst  formations,               
sandy land, and land under natural water bodies.                                
                                                                                
     Article 4.                                                                 
                                                                                
     A tax at the basic rate, i.e. 335 roubles per hectare, shall               
be imposed on all non-agricultural land.                                        
     During the  first three  calendar years from the enforcement               
of this  law, taxes  shall be  imposed on  the total area of land               
which is allotted (or acquired) for non-agricultural purposes and               
which  was  previously  used  for  farming,  at  the  basic  rate               
prescribed by Supplement 2 of this law.                                         
                                                                                
     Article 5.                                                                 
                                                                                
     Upon determining  the minimum  tax rates, the basic rates of               
taxes specified  in Articles  3  and  4  shall  be  increased  by               
applying the following coefficients:                                            
     in the cities of Vilnius and Neringa                   2.5                 
     in the cities of Kaunas and Palanga                    2                   
     in other towns under the jurisdiction of the                               
     Republic and in the town of Trakai                     1.7                 
     in towns whose population exceeds 30,000               1.5                 
     in towns whose  population is between  10,000                              
     and 30,000                                             1.3                 
     in towns whose population is under 10,000              1.2                 
     in urban-type settlements                              1.1                 
     for land owners and users, if more than  half of                           
     the total area of the allotted (or acquired)                               
     land is ithin 10 kilometres of the border of                               
     a town under the jurisdiction of the Republic          1.2                 
     for land owners and users, if more than  half of                           
        the total area of the allotted (or acquired)                            
        land is within 5 kilometres of a town border        1.1                 
                                                                                
     The amount  of tax  imposed on  land allotted  (or acquired)               
beyond the boundaries of a town or urban-type settlement shall be               
calculated by  applying either  the  minimum  tax  rate    for  a               
suburban zone,  or the  basic tax  rate (with  the  exception  of               
suburban  zones).                                                               
     In towns and urban-type settlements, land tax rates shall be               
determined by  local government  Boards in  compliance  with  the               
procedures established  by the  Government  of  the  Republic  of               
Lithuania.                                                                      
     Tax rates  may not  exceed   40 times   the minimum tax rate               
imposed in the locality.                                                        
                                                                                
                                                                                
     3. Tax Reliefs                                                             
                                                                                
     Article 6.                                                                 
                                                                                
     Land tax shall not be imposed on:                                          
     1) State reserve land;                                                     
     2) State Forest Fund land;                                                 
     3) cemeteries and church yards;                                            
     4)  land   allocated  for   environmental,  educational  and               
scientific purposes;                                                            
     5)  the   grounds  of   archaeological,  architectural,  and               
historical monuments;                                                           
     6) State railway and State motor transport land;                           
     7) State Water Fund land;                                                  
     8) land  of towns  and  urban-type  settlements    which  is               
commonly used;                                                                  
     9) land  allotted to  (or acquired by) charity organizations               
and institutions  which are financed by local government budgets;               
and                                                                             
     10) forest land in towns and urban-type settlements.                       
     Farmsteads, private  farms, and  land which  is allotted  by               
bodies of  State Government,  used for commercial activities, and               
located on  the territories  specified in  paragraphs 1, 2, 4, 5,               
and 6 hereof, shall not be exempt from taxation.                                
                                                                                
     Article 7.                                                                 
                                                                                
     Under this  law,   land owners and land users who qualify as               
Group I  or Group  II  invalids, as well as  people for whom old-               
age pension,   tax-exempt agricultural income, and grants are the               
sole source  of family  income, shall  be exempt from taxation if               
their respective plot of land  is no more than 1 hectare in rural               
areas, or 0.15 hectare in urban areas.                                          
                                                                                
     Article 8.                                                                 
                                                                                
     The right  to modify taxation or to declare individual legal               
and natural  persons or their respective groups  exempt from land               
tax shall  belong to the Local Government Boards to whose budgets               
land tax payments are appropriated.                                             
                                                                                
                                                                                
     4. Procedure and Control of Tax Payment                                    
                                                                                
     Article 9.                                                                 
                                                                                
     Land tax  shall be  based on the data of the land  cadastre,               
which shall  be presented  to the  land users  in  the  procedure               
established by the Government.                                                  
      Legal persons shall  calculate their own taxes according to               
the set  form of the Ministry of Finance, and shall file a return               
with the  town (or district) State Tax Inspectorate every year by               
the 1st of  February.                                                           
     State Tax  Inspectorates shall  calculate taxes  for natural               
persons, and  shall inform  them of  the amount due by the 1st of               
February.                                                                       
                                                                                
     Article 10.                                                                
                                                                                
     New land users shall pay taxes:                                            
     1) for the whole year if the land is allotted or acquired by               
right of ownership during the first half of the year; or                        
     2) beginning   the following year if the land is allotted or               
acquired by  right of  ownership during  the second  half of  the               
year.                                                                           
     The same regulations shall be applied if the boundaries of a               
land user's  plot are changed.                                                  
                                                                                
     Article 11.                                                                
                                                                                
     If the  tax due  for a  given   year does  not exceed    500               
roubles, the  taxpayers shall pay the required amount in  2 equal               
installments: the first installment by May 1st, and the second by               
November 1st;  if the  amount exceeds  500 roubles,  it shall  be               
payed in  four  equal  installments:  the  first  installment  by               
February 15th,  the second by May 15th, the third by August 15th,               
and the fourth by November 15th.                                                
                                                                                
     Article 12.                                                                
                                                                                
     Persons who  are not  taxed by the established date shall be               
required to  pay no  more than  the amount  of the  previous  two               
years. Inaccurately  assessed tax  revisions,  tax reimbursments,               
and recoveries  of debt   shall also not exceed the amount of the               
previous two years.                                                             
                                                                                
     Article 13.                                                                
                                                                                
     Taxpayers who  fail to  pay their taxes by the required date               
shall be liable for a daily interest of 0.5 percent until the tax               
is payed.                                                                       
                                                                                
                                                                                
     5. Special Conditions for the Imposition of Taxes                          
                                                                                
                                                                                
     Article 14.                                                                
     Natural and  legal persons  who are  voluntarily using  land               
without a  due permit  shall be  held liable  by  the  State  Tax               
Inspectorate for   three times the maximum tax rate for the given               
residential area.                                                               
     Payment  of   the  aforesaid  tax  shall  not  legalize  the               
unsanctioned use of land.                                                       
                                                                                
Vytautas Landsbergis                                                            
President                                                                       
Supreme Council                                                                 
Republic of Lithuania                                                           
Vilnius                                                                         
25 October 1990                                                                 
No. I-714                                                                       
                                                                                
                                                                                
                                                                                
          LAW ON LAND TAX OF THE REPUBLIC OF LITHUANIA                          
                          SUPPLEMENT 1                                          
                                                                                
     Basing rate of land tax for agricultural land [of the land                 
used for agricultural purposes] according to the assessment of                  
its productivity.                                                               
                                                                                
     Productivity marks            Rate of land tax                             
    of agricultural land           roubles per 1 hectare per year               
                                                                                
     up to 17                                6                                  
      17.1-19                                12                                 
      19.1-21                                18                                 
      21.1-23                                24                                 
      23.1-25                                30                                 
      25.1-27                                36                                 
      27.1-29                                42                                 
      29.1-31                                48                                 
      31.1-33                                54                                 
      33.1-35                                60                                 
      35.1-37                                66                                 
      37.1-39                                72                                 
      39.1-41                                78                                 
      41.1-43                                84                                 
      43.1-45                                90                                 
      45.1-47                                96                                 
      47.1-49                                102                                
      49.1-51                                108                                
      51.1-53                                114                                
      53.1-55                                120                                
      55.1-57                                126                                
      57.1-59                                132                                
      59.1-61                                138                                
      61.1-63                                144                                
      63.1-65                                150                                
      65.1-67                                156                                
      67.1-69                                162                                
      69.1-71                                168                                
      71.1-73                                174                                
      73.1-75                                180                                
      75.1-77                                186                                
      77.1 and over                          192                                
     On the average in the Republic          85                                 
                                                                                
                                                                                
                                                                                
          LAW ON LAND TAX OF THE REPUBLIC OF LITHUANIA                          
                                                                                
                          SUPPLEMENT 2                                          
                                                                                
     Basing rate  of land  tax on  agricultural land  of the land               
used for  agricultural purposes]  allotted  for  non-agricultural               
purposes                                                                        
                                                                                
     Productivity marks            Rate of land tax                             
     of agricultural land          roubles per 1 hectare per year               
                                                                                
     up to 17                                     140                           
     17.1-19                                      155                           
     19.1-21                                      170                           
     21.1-23                                      185                           
     23.1-25                                      200                           
     25.1-27                                      215                           
     27.1-29                                      230                           
     29.1-31                                      245                           
     31.1-33                                      260                           
     33.1-35                                      275                           
     35.1-37                                      290                           
     37.1-39                                      305                           
     39.1-41                                      320                           
     41.1-43                                      335                           
     43.1-45                                      350                           
     45.1-47                                      365                           
     47.1-49                                      380                           
     49.1-51                                      395                           
     51.1-53                                      410                           
     53.1-55                                      425                           
     55.1-57                                      440                           
     57.1-59                                      455                           
     59.1-61                                      470                           
     61.1-63                                      485                           
     63.1-65                                      500                           
     65.1-67                                      515                           
     67.1-69                                      530                           
     59.1-71                                      545                           
     71.1-73                                      560                           
     73.1-75                                      590                           
     77.1 and over                                605