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The Constitutional Court in its ruling of May 11, 2017 declares "unconstitutional and null all measures that subject to taxation situations of no increase in value"

Antonio Meca will ask in plenary "that the application of the fiscal ordinance No. 6 regarding surplus value be temporarily suspended, for those cases in which it is alleged that there is no increase in value, until the enactment of the Law proposal approved by the Spanish Federation of Municipalities and Provinces. "

The full Constitutional Court has declared on February 16, 2017, unanimously that the Tax on the Increase in the Value of Urban Land is partially unconstitutional.

Specifically, the unconstitutionality is that it is forced to pay for this tax by giving up the property even if losses have been incurred in transmitting it, which goes against the constitutional principle of taxing according to economic capacity.

This means that the tax is paid even though the value of the land has decreased since its acquisition.

According to Antonio Meca "it is our obligation to act in favor of the interests of citizens", and therefore it is necessary that the plenary session of the City Council of Lorca arbitrarily decide on the modification of the Regulatory Ordinance of the Capital Gains Tax to enable a moratorium on the processing of the settlements as long as a rule according to our Constitution is not approved, and that, in any case, "the municipal tax administration gives channel to the claims that are presented in a manner that respects the norm and with the resolution of the TC" .

In Spain, similar motions have been filed to rectify this tax: City Councils of Cádiz, Las Palmas de Gran Canaria, Seville, or more closely in our Autonomous Community Fuente Álamo or San Javier.

In January, the Ministry of Finance and the Spanish Federation of Municipalities and Provinces (FEMP) have agreed on the reform of the Tax on the Increase in the Value of Urban Land, so that the sale at the the real estate is not taxed by this tax, and will be applied according to the text of the bill.

Therefore "we intend to amend the Regulatory Ordinance of the Tax on the Increase on the Value of Urban Land, so that a moratorium is enabled in the processing of settlements where the taxpayer certifies that there has been no real increase in the value of the property transmitted ", explains the Councilman, as long as a rule is not approved according to the ruling of the Constitutional Court of February 16, 2017.

Source: Ciudadanos Lorca