Property tax proposal
Torrevieja town hall seeks allies for further IBI reduction
By Dave Jones TORREVIEJA’S coalition council is bidding to slash property tax (IBI) again next year.
However, treasury councillor José Hurtado said a new reduction would be linked to approving a council budget for 2018, with the coalition dependent on votes from other parties as they are ruling in minority.
Sr Hurtado reminded that Torrevieja residents have enjoyed lower bills since the alliance of four parties came to power in 2015.
He explained that this year IBI was cut by 4% by reducing the rate to 0.425 from the 0.443 charged in 2016.
The councillor is proposing a 7.5% cut to the rate next year, which would see it fall to 0.4105.
During a press conference at the town hall, Sr Hurtado gave examples of how the reductions would affect bills.
He explained that in 2017 a household which was paying €250 had seen a saving of €10.
In 2018 they would pay €18.75 less, if the motion is passed at a full council meeting. Residents paying €500 had saved €20 this year – and could see their bill reduced by €37.50 in 2018. The councillor noted that further reductions have been made available for large families and residents who have installed solar panels at their properties.
The council’s IBI reduction policy meant it collected €1.2 million less in taxes this year.
Sr Hurtado noted that because the town hall is receiving less income, then this would have to be reflected in a new budget for 2018.
He reminded that the council is still working with a budget carried over from 2015, as they have been unable to sign binding agreements with opposition parties.
Failure to reach a deal for next year’s budget could force the council to increase IBI in 2019 to meet spending guidelines set out in 2015, he noted.