I.B.I. - Tax liabilities on urban properties

Ordinance regulating the granting of a subsidy for the payment of the tax liabilities on urban properties to tax payers registered as residents in the municipality of Marbella

Statement of Racionale

Marbella, like other municipalities in which touristic activity bears a notable influence in their economic and social structure, is characterised by the reality of a non-resident population which, however, must be catered for with adequate public services in relation to volume and quality. This fact goes hand in hand, obviously, with the existence of a significant number of residences that represent second homes.

The circumstances described have two consequences of great importance to the ongoing management of the municipality: the first, which requires an extension in the dimensions of the public service very far above that which the resident population rightfully requires; the second, which produces an imbalance in the resources which the Town Council must collect to finance these services, as a significant part of same are as a consequence of the participation of State Funds and those of the Autonomous Community, and the formula for the calculation of same takes very much into account the volume of the population registered as resident.

As a result, those registered as residents in the municipality of Marbella contribute to the municipal treasury through two channels, whilst those who are not registered as residents only do so through the payment of municipal taxes and rates, as their contributions through state and regional taxes are paid to their municipalities of usual residence.

That is why this Administration, by virtue of the principle of the equity of contributions to the municipal treasury on the part of registered and non-registered residents, suggests to the Corporation’s Plenum the granting of a subsidy in order to resolve this situation, helping registered residents to meet the payment of a tax which, by its very nature, has great importance due to its revenue collection capacity.

From an administrative perspective, subsidies are a tool available to public administrations to boost certain behaviours deemed to be of general interest. In the case of the subsidy for the payment of the property tax liability, in addition to greater equity of contributions, it is sought to boost the registration of all residents in the municipality, circumstance which is of great importance to any municipality, but which in a touristic municipality such as Marbella, is essential.

But this ordinance introduces an innovative and simultaneously transcendental element, insofar as it modulates the amount of the subsidy in accordance with the economic capacity of the contributor, introducing another element of scale in the resulting amount to be paid in tax liability. In effect, in the proposal presented, the amount of the subsidy will be determined in accordance with the cadastral value of the house object of the registered residency, by means of the application of a certain percentage of the tax liability. By so doing all registered residents are subsidized, although the amount of the subsidy is established via a criterion which bears in mind the economic capacity of the owner, demonstrated by the cadastral value of the house object of the registered residency.

In accordance with what is established in Law 7/1985, of 2nd of April pertaining to the Foundations of the Local Government System, General Subsidies Law 38/2003,of 17th of November, and General Regulating Ordinance for the Granting of Subsidies, approved by the Municipal Corporation on 30th of September of 2005, published in the BOP (Official State Gazette) of Malaga on 12th of December of 2005, the present Regulatory Ordinance for the granting of subsidies for the payment of urban property tax liabilities is approved for registered resident taxpayers in the Municipality of Marbella, under the following terms:

Article 1.- 0bject

The present Ordinance has as its object to establish the basic regulations for granting the subsidy aimed at paying the urban property tax liability for registered resident taxpayers in the Municipality of Marbella.

Article 2.- Finance.

The subsidies will be charged to budgetary account 9310-48920 "Subsidies to registered residents for the payment of the urban property tax liability” in each budgetary year it is implemented.

Article 3.- Amount of the subsidy.

The amount of the subsidy is established in relation to the cadastral value of the house object of the registered residency and a certain percentage of the tax liability, according to the following scale:

Cadastral value of the dwellingSubsidy % Tax liability Between 0 Euros and 100.000,00 Euros 10%  Between100.000,01 Euros and 200.000,00 5% Between 200.000,01 Euros and 300.000 Euros 3% More than 300.000,01 Euros 1,5%

Regardless of the percentage established in the above scale, the amount of the subsidy will have a maximum limit of the difference between the tax liability of the corresponding fiscal year and the tax liability of the previous year. 

Article 4.- Beneficiaries.

1.- The beneficiaries of the subsidy regulated in the present Ordinance will be the physical people registered as residents in the Municipality of Marbella who hold the status of liable taxpayers as owners or co-owners for the urban property tax payable on the dwelling object of the registered residency.

2.- Exclusively object of subsidy will be the periodic bills included in the annual Register for taxation of urban property, with residential use cadastral classification, and which corresponds with the dwelling object of the residential registration of the beneficiary.

3.- Qualification for the status of beneficiary requires being a registered resident to 31st of December of the fiscal year prior to the application of the afore-mentioned subsidy.

Article 5. - Incompatibilities.

1.- Unable to obtain the status of beneficiaries of this subsidy will be those physical people who present any of the circumstances established in art. 13.2 of General Subsidies Law38/2003,of 17th of November.

2.- Proof of compliance with the conditions must be provided through the means indicated in art.13.7 of the afore-mentioned legal text. However, this may be replaced by a statement of compliance formulated in accordance with the model provided by the Town Council of Marbella. 

3.- The periodic bills from the Municipal Register will only be the object of subsidy during the voluntary payment period; with the subsidy becoming forfeited upon commencement of the summary collection period.

Article 6.- Procedure for granting the subsidy.

1.- The subsidy will be administered through the application of the beneficiary using a model provided by the Town Council of Marbella. The model mentioned must contain full identification of the applicant, address of the registered residence, cadastral reference for the afore-mentioned address and the statement of compliance as established in the General Subsidies Law.

2.- The application period will begin on the 1st of February and end on the 31st of March of the fiscal year corresponding to the subsidy application.

3.- With the period for the presentation of applications over, the Subsidy Unit will present a proposal for provisional approval by the Local Government, which will be the object of inspection by the Public Accounts/Audit Dept and Municipal Legal Counsel. The provisional proposal will become definitive for each beneficiary when the conditions established in the present regulating text are fulfilled.

4.- The provisional approval of the subsidies must be displayed on the Municipal Bulletin Board.

5.- The beneficiaries of the subsidies must be up to date with their obligations in relation to payments to the Town Council of Marbella up to 31st of March of the fiscal year for which the subsidy is being requested. This will be processed by means of applying the subsidy amount to the urban property tax liability.

6.- The Accounts/Audit Department will proceed to enter the “ADO” accounting document into the Accounts, in accordance with the agreement adopted by the Local Administration.

Article 7.-Payment and annulment of obligations.

Payment of the subsidy will be made when voluntary collection of the urban property tax bill being subsidized takes place.

Once the voluntary payment procedure has finalised, matters will proceed as follows:

1.- The periodic tax payments that remain outstanding in relation to the IBI (real estate tax), once the voluntary payment period has passed, may not be the object of subsidy, thereby causing the annulment of the subsidy in the voluntary period.

2.- At the suggestion of the Treasury Department, with a prior report from the Accounts/Audit Department and Municipal Legal Counsel, and by agreement of the Local Administration, the annulment is processed in relation to the obligations corresponding to the subsidies approved for those taxpayers who have not paid their periodic annual register bills within the voluntary period of payment pertaining to urban property tax.

3.- The Accounts/Audit Department will proceed to enter the accounting ADO document on retained credit into the books, reinstating the budgetary credit to available status.

Article 8.- Reimbursement.

The reimbursement of the afore-mentioned subsidy will proceed in the manner and form established in Title 11, Reimbursement of Subsidies Law 38/2003, of 17th of November, General Subsidy Law.

Article 9.- Financial control.

1.- The Public Accounts/Audit Department of the Town Council of Marbella may implement whatever mechanisms it deems opportune to undertake the financial control of the subsidies granted.

2.- Financial control is undertaken by the Public Accounts/Audit Dept in accordance with articles 220 to 222 of the Consolidated Text on the Law Regulating Local Treasuries, Title III of the General Subsidies Law, Title VI of the General Budgetary Law and all other concurrent regulations.

Article 10.- Infringements and sanctions.

Of application will be what is established in Title IV “Infringements and administrative sanctions in relation to subsidies” of General Subsidies Law 38/2003, of 17th of November. Final provision.-The present Ordinance comes into force with the publication of its definitive approval in the Official Gazette of the Province of Malaga, with its application beginning on the 1st day of January of 2012 and remaining in force until it is modified or expressly revoked.