Prop­erty tax pro­posal

Torrevieja town hall seeks al­lies for fur­ther IBI re­duc­tion

Costa Blanca News (South Edition) - - News - Djones@cb­

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.

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