TC eliminates the additional rate of 100% in the property tax to non -urbanized land

The Constitutional Court (TC) declared unconstitutional the additional rate of 100% on the property tax, which applied to land located on urban land without proper authorization, without receiving works or without constructionas established in Law No. 31313 of Sustainable urban development.

This decision was taken after the South Lima Bar Association filed a lawsuit against various parts of the law. As a result, the Taxpayers They paid more for this concept, they can ask that municipalities return the money or compensate for future tax payments.

The maximum body indicated that said law imposed a Tax load Too high and unfair to taxpayers, which affected their right to property.

“At the discretion of the TC It was a disproportionate and unreasonable rate Because 100% of the property tax was going to be applied to certain cases, for example, when the property does not have a building and has an urban habilitation, ”said lawyer Sofía Chirinos of Editorial Economy and Finance (EEF).

This rate applied Since January 1, 2024 and governed for all owners whose lands were not developed, that is, those who did not have Urban authorization.

Increase in current soil value

While the TC annulled the double property tax rate, in its ruling it decided to keep the collection in the Increase in soil value established in the same law, considering that owners must contribute to urban development by the increase in the value of their properties due to the actions of the State.

“This, in my opinion, is a kind of surplus value that is paid simply because the value of the property increases by different externalities. For example, Urban Development Plans, More building rights or if the owner increases the floors of his property, ”said the expert.

In the resolution, the TC makes it clear that this participation does not constitute a tribute, but a patrimonial benefit of a public nature and non -tax nature and as it does not qualify as such, then the constitutional principles cannot be applied.

“For me it is a tax tax. I always considered it as a type of surplus value because it taxes wealth, ”he said after adding that by means of amparo it could be achieved that this participation in the INCREMENT OF THE SOIL VALUE.

“That is aimed at certain people or companies that file this type of demand,” he said.

Keys:

• The double property tax rate boosted urban development. When annulled it could be noted that it would encourage land traffic, the expert warned.
• Staggered. The property tax is a rate that is applied by the value of the property. Rates range from 0.2% to 1%.