CREVILLENTE is the latest in a growing number of municipalities to announce a 5 per cent reduction in the annual Real Property Tax (IBI), known by many as the SUMA council tax.
The move will apply to 23,000 homes and will take effect from next year’s payment due in May 2018. In addition, the rubbish collection tax will be reduced by 17 per cent.
Specifically, the reduction will apply to a number of fincas in the municipality and will see an estimated shortfall of €350,000 for the Crevillente coffers. However, the loss will be compensated by payments made from illegal and unregistered properties that are currently in the process of being formalised.
This initiative still needs to go through a formal council meeting, but it already has the explicit support of the PP, Ciudadanos and Compromis parties. The full details of the reduction in rates will be discussed by the finance committee.
The municipality also estimates an increase in revenue of €400,000 from fincas that have had their values increased and will be part of the €6.3m raised from the IBI tax.
The budget also includes provision of €50,000 for a social assistance programme intended to pay the IBI of families that find themselves in financial difficulties and within a qualification criteria to be announced shortly.
Crevillente’s Mayor, Cesar Asencio said: “We are satisfied that we have been able to make this tax reduction of more than half a million euro without jeopardising the standard of the services offered by the municipality.”