September, just as one goes back to school, in the heat of the budget debate, the discussion about taxes returns. In this debate, noise abounds and information is scarce. So this afternoon I have thought of sharing with you some concepts around the IBI and the treatment that this tax has in Oviedo and Gijón.
The IBI is a tax paid by the owners of real estate (flat, garage, ground floor …) resulting from applying to the property’s cadastral value a percentage called the tax rate. In Gijón, the same rate applies to goods, both urban and rural: 0.45%; in Oviedo, 0.56% are applied to urban areas and 0.77% to rural areas.
The differentiated IBI records with a higher rate, than that established in general, to certain properties with uses other than residential, for example industrial, commercial, hospitality, etc. that also exceed a certain cadastral value. In Oviedo, in 2016 the tripartite regulated the IBI and it has remained with the bipartisan Citizens and Popular Party, in Gijón, it was necessary to wait for the tax ordinances of 2020 to be established, although their application has been suspended as a result of the pandemic.
So you see …. We are facing one of those cases in which reality coincides with the story. A city council traditionally governed by the right, yes, the same one that fills its mouth talking about the reduction of taxes, in which much more IBI is paid than in another, Gijón, traditionally governed by the left. And also in the first one, the differentiated IBI has been applied for years, which, on the other hand, is harshly attacked by the Gijon right. In the coming weeks we will surely hear many statements on these matters. Again voices will be heard saying that it is best not to pay taxes, once again they will advocate for the disappearance of inheritance tax.
If the pandemic has shown anything, it is that the vast majority of the population needs the protective action of the state and quality public services. And that is not possible without resources, part of which is obtained through taxes. Be wary of those who say otherwise.
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