The Constitutional Court annuls various aspects of the municipal capital gains tax

The Constitutional Court today declared the nullity of various aspects of the calculation of the municipal capital gains tax, since they determine that there has always been a revaluation of the land during the tax period, regardless of its existence and its actual amount.

The ruling, of which more details will be known in the coming days, considers unconstitutional different sections of article 107 of the consolidated text of the Law Regulating Local Taxes, which establishes the taxable base of this tax, and declares the intangibility of firm situations existing to date.

The first of them affects the article 107.1, according to which the tax base is constituted by the increase in the value of the land, revealed at the time of accrual and experienced over a maximum period of 20 years.

In its second paragraph, now declared void, the law stipulates that, in order to determine this base, the value of the land at the time of accrual must be taken into account in accordance with a series of rules, and the annual percentage determined by each town hall.

The article is also unconstitutional 107.2.a), which establishes that in land transfers the value will be determined for the purposes of the Real Estate Tax (IBI), that is, taking into account the cadastral value set by the Administrations.

Likewise, the Plenary declares the section 4, which provides for the application of an annual percentage, determined by each council, on the value of the land.

To establish it, the law provides that it be the result of multiplying the annual percentage applicable to each case by the number of years over which there has been an increase in value.

The judgment, which considers the question raised by the Superior Court of Justice of Andalusia, has the private vote concurring of the president of the Constitutional Court, Juan José González Rivas, and the dissenting votes of justices Cándido Conde-Pumpido and María Luisa Balaguer.