I have seen many concerned comments on local Facebook pages and thought it would be helpful and in keeping with our policy of transparency if I gave a detailed explanation of the IBI situation.
When we came to government in May 2011 in Xàbia taxpayers paid approximately 21 million euros in IBI. The current local government scheduled a significant reduction in expenditure for the 2012 budget which would have generated an initial rebate of 2 million euros for taxpayers (which was the percentage of increase since 2006 which had gradually been going up each year) by applying a progressively reduced percentage to the assessed property value, which is under municipal jurisdiction, this is called the ‘Tipo Impositivo’ or Tax Rate.
However in late May 2012, we received the judgment of the Supreme Court annulling the existing assessed property values in force since 2005, and reverting to the assessed property values valid in 1994. This resulted in a decrease in property tax revenue of 8 million euros; from a forecast of 21 million euros of tax income this meant a drop to 13 million. All this happened in the month of June, in the middle of the fiscal year when many spending commitments had been already made. Because this situation arose in June, the lists of the IBI contributors could not be sent to the Provincial Directorate of Cadastre until September; so the payment period for IBI began in October 2012, and the people who had domiciled their payment through their banks were debited at the beginning of October. This year when the payment period reverted to the customary time, that is from August to November, and as at the time of the Town Hall’s approval of its payment schedules, we were could not forecast the Town Hall’s financial situation, we had to approve a payment plan that began this August.
Regarding the increase in the bills I can say that, while it is correct that compared to 2012 there is an increase, it should be noted that last year was exceptional because of the special circumstances of the Supreme Court judgment, resulting in a drastic reduction in revenue leaving little leeway for the Town Council. What we chose to do was to safeguard the municipal tax revenues, to enable us to maintain the level of services, and adjust the assessed values to the actual situation. This required us to modify the tax rate upward (not the assessed value or catastral value as they have in other towns, which would have affected many other taxes such as inheritances) this resulted in going from 13 million euros tax revenue in 2012 to 16 million euros revenue in 2013, which is significantly lower than the 21 million euros paid by Xàbia taxpayers in 2011. This means that since this government took office, the citizens of Xàbia, pay less (in comparison with the years prior to 2012 and this one). Taxpayers are paying 5 million euros less this year than in 2011. Adding up all taxes paid we are now at the levels of taxes charged in our town in 2009.
There will be no more changes to the tax levels, and if it is at all possible we will try to reduce the tax burden, rest assured of this.
But what we can categorically state is that, today in Xàbia, our citizens are paying less tax than when we came into government. All our efforts and hard work is aimed at doing more for the town with less money. José Chulvi – Mayor.write text in Spanish and add pic from librarywrite text in Valencian and add pic from library