The government is preparing to take measures It aims to increase the Integrated Property Tax (IPU) by 50 to 300 percent, depending on the value of the property and regardless of whether they are located in urban or rural areas. This is clearly seen in the bill presented to the House of Representatives last Wednesday by Minister responsible for Finance Ricado Bonilla González and Jhenifer Mojica Flórez responsible for Agriculture and Rural Development.
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Bill 292 states that urban properties for residential and commercial purposes, the cadastral value of which is less than or equal to 135 of the current legal monthly minimum wage, will be subject to an adjustment of up to 50 percent of the amount determined for the same concept of the previous year ( smmlv ), i.e. at this year’s prices approximately 156.6 million pesos.
Rural properties with similar cadastral valuations for residential, commercial or infrastructure support will also be subject to the same regulation; agricultural production; institutional and conservation and conservation areas.
Likewise, the project states that the increase will be 100 percent for properties whose cadastral valuation is above 135 minimum salaries and below 250 salaries (8290 million); IThose above 250 salaries and below 350 smmlv (406 million) will be subject to an adjustment of 150 percent; For those whose valuation is above 350 but below 500 minimum wage (580 million), property taxes will be increased by 200 percent, while properties exceeding this last range will be subject to property tax adjustments of up to 300 thousand. As can be seen from the project in question, percent
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The initiative consists of four articles that determine how the property tax regulation will be made and in which cases the regulation will not be applied.
In this sense, it warns that this limitation will not apply to immovable properties that are included in the cadastral basis for the first time, undeveloped and unbuilt urbanizable parcels, or rural immovable properties that have an undeveloped parceling license and do not have agricultural use.
Among the motivations that pushed the government to make this strong regulation in the Unified Property Tax is that the tax in question should be implemented “in accordance with the principles of equity, efficiency, progressiveness and retroactive taxation” included in the Constitution. , The state will need to carry out a new cadastral assessment, which will be the basis for the implementation of these regulations, to the extent that it is necessary to know the economic reality of the property.
According to the government, properties currently do not fully reflect this economic reality as they may have lost or appreciated in value over time, making it impossible to know whether a fair tax has been paid or collected on that property. The political statute commands this.
“If the State updates the cadastral valuation after more than five years, there will be a significant impact on taxpayers’ ability to pay,” the government warns in its statement explaining the reasons for advancing the discussion of the initiative.
The initiative also aims to eliminate exceptions in Law No. 1995 of 2019, such as “properties arising from construction or building that appear as unbuilt and zoned lands and whose new assessment is made on”. The feature will include these changes that will allow it to be classified in any of the new ranges provided in the standard.
Another exception that will no longer be valid with this initiative is valid for properties whose economic target has changed or whose land and/or construction areas have been changed. Because, according to the Government’s declaration, there is a very serious volume in the country. number of properties that change the economic target.
Government calculations show that although municipal and total revenue from the IPU in Colombia is higher than in other Latin American economies, it is lower than the average for OECD countries (1.1 percent). Actually, In the country, these represented 0.8 percent of gross domestic product (GDP) in 2021, but this fell to 0.67 percent a year later. and they offered 9.8 billion pesos.
The government states that the largest collections of this tax are concentrated in major cities; Bogotá and Medellín take first place, with participation of 36.8 percent and 8.9 percent of the total, respectively. So, what the Executive observes in its analysis is that participation is very low due to the difficulties of municipalities and other regions in effectively collecting this tax in their areas.
In this context, through this change in IPU regulations, the Government wants to provide these regions with tools to improve their tax management, reduce evasion, increase their revenues and improve taxpayers’ payment capacity.
Source: Exame
