Property tax to increase by an average of 66%

[Sleuth]

Just read this from The Argentine Independent:

A new property tax increase was finalised in the early hours by legislatures under the government of Mauricio Macri, mayor of Buenos Aires. The property tax (ABL) will mean an average rise among households of 66%, but in some cases it will rocket up to 300%.

The money will contribute to the sweeping, cleaning and lighting of the city.

The project has incorporated a flat tax of $600 a year for all landowners – meaning $50 a month. At the moment over 20% of landowners pay under $34 monthly.

For garages, storage spaces and other supplementary units, the flat tax will be an annual $200.

The increase in ABL will raise current tax revenue from $1,3 billion in 2011 to $2,3 billion in 2012. In addition, the bimonthly payment has been changed to monthly.

It is argued that this is not merely a rise in taxes, but a recalculation taking into consideration the buildings, soil characteristics, use, any other structures attached to it as well a geographic location.

A spokesman for the Government Revenue Agency (AGIP) admittedto the daily La Nacíon that each house will have to be evaluated case by case.

With this and the end of subsidies, expect to see rents increasing soon...

 

[va2ba]

With this and the end of subsidies, expect to see rents increasing soon...

By at least a few hundred dollars I imagine...

 

[scotttswan]

i wonder if we'll actually get anything for our $600 extra

 

[steveinbsas]

In 2007 my ABL (for my apartment) increased to $600 pesos (from $200).

Does the new "increase" mean the 2007 rate of $600 is now the top rate and the tax on that apartment is now capped?

 

[Sleuth]

Looks like Clarin actually spells it out a bit clearer:

http://www.clarin.com/ciudades/capital_federal/ABL-porteno-llegaria-valor-viviendas_0_597540486.html

 

[jb5]

I'm not so sure landlords are going to have an easy time passing their costs on to renters. AR is at the beginning of an economic slowdown. The government is not going to hand out inflation paced wages this year and private industry will follow. Real estate, especially higher end and tourist rentals, is losing value due to the dollar situation, the end of subsidies and foreigners staying out of the irrational market. It's going to get interesting.

 

[steveinbsas]

Looks like Clarin actually spells it out a bit clearer:

http://www.clarin.com/ciudades/capital_federal/ABL-porteno-llegaria-valor-viviendas_0_597540486.html

Well, that's nice for those of us who speak and read the local lingo.

Since you started this thread in English it would have been nice (aka agradable) if you had simply answered my question in English.

Nonetheless, I found the answer in the following paragraph:

"A precios de hoy, eso implica, por ejemplo, que un departamento de 60.000 dólares debería pagar alrededor de 1.800 pesos al año (en 12 cuotas de 150 pesos), uno de 100.000 dólares, unos 3.000 pesos al año (12 cuotas de 250 pesos) y uno de 200.000 dólares, aproximadamente 6.000 pesos al año (12 cuotas de 500 pesos)."

And I translate it as follows:

"At today's prices, that means, for example, that an apartment of 60,000 dollars should pay around 1,800 pesos for the year (in 12 payments of 150 pesos), one of 100,000 dollars, some 3,000 pesos for the year (12 payments of 250 pesos) and one of 200,000 dollars, approximately 6,000 pesos for the year (12 payments of 500 pesos)."

The taxes that were $600 pesos per anum for my apartment in 2007 will now increase to $1800 per anum...another 300% increase.

Fortunatley, I don't own it (or any property in CF) now.

Unfortunately, I have friends who do.

 

[Crema Americana]

"The money will contribute to the sweeping, cleaning and lighting of the city."

They forgot to add "...and the lining of politicians' pockets."

If they actually put that money to good use towards sprucing up the city, I'd be quite impressed... but I'm not holding my breath.

 

[sesamosinsal]

Well, that's nice for those of us who speak and read the local lingo.

Since you started this thread in English it would have been nice (aka agradable) if you had simply answered my question in English.

 

[ghost]

It's time for PERRY to enter and say "it's still a great investment" to buy property in CF. "It's cheap by "world" standards." But one must ask, how do you justify world standard prices when world standard infrastructure doesn't coexist.