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THE TOWN HALL APPROVES UPDATING AND LOWERING THE PROPERTY TAX VALUES IN BENALMADENA

06/05/2011 Departamento de Extranjeros
THE TOWN HALL APPROVES UPDATING AND LOWERING THE PROPERTY TAX VALUES IN BENALMADENA

The Town Hall of Benalmadena approved during the last plenary meeting a proposal by the Partido Popular to update the actual property values in the municipality. This modification will be done by the Tax Planning Centre in Malaga. The actual property values were fixed in 2005 and they have been in use since 2006. In four years, property values have changed and there is a marked difference between the current market values and those in 2005.

This situation is unfair because, according to the law in force, the property value can never exceed the market value, and should be close to 50 percent of it. This requirement is not fulfilled in Benalmadena and the situation could get worse because the annual tax increases during a period of ten years, means that in the next five years the value would increase by 50 per cent.

The catastral value also affects other taxes such as Income Tax and Inheritance Tax, as well as the urban valuation. The situation is particularly serious in Benalmadena, because recently the Department of Economy and Inland Revenue applied to our municipality a multiplier called “location factor” which further increased property values for tax purposes.

Aware of this situation the Council has reduced the rate of the Property Tax in order to minimize the effects caused by this legal increase of 10% each year. In addition “the good citizen discount” increased from 33% in 2008 to 55% in 2010.

Rejection of the tax increase proposed by the Spanish and the Andalusian Governments

During the same plenary meeting the Council agreed to reject the tax increase proposed by the Spanish and the Andalusian Governments for 2011. This tax increase discourages savings, new investments and creating employment. The Town Hall of Benalmadena requested the Central Government to abolish the tax increase regulated by the State Budget Law for 2011, and also urged the Andalusian Government to reduce the property values regulated by the Taxation Law to enable the reduction of the public deficit and provide sustainability for Andalucia, in the same way as the Law regarding water taxes.

Through this motion, the Town Hall of Benalmadena urges the Andalusian Government to adjust the fiscal system for Andalucia and effectively to reduce the taxes for the sake of small companies, the self-employed and families.