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Publicado el 28/4/2017
The Tax on the Increase of the Value of Land of Urban Nature, better known as Municipal Goodwill, is a local tax that taxes the increase of value that the lands experience, evidenced as a consequence of the transmission of the property of the same, And has been considered one of the main means of collection of the municipalities. It is therefore a common practice, favored by the legal text, that municipalities require payment of this tax in any case, even in the event that at the time of transmission does not show an increase in land value.
However, a line of jurisprudence has recently been opened which does not admit this action by the Consistories, and thus numerous Courts and High Courts of Justice are considering that this tax can not be demanded if the transmission of the land has not generated any benefit, and If it had been lower than that calculated by the City by applying the legal rules, the value increase that actually has been generated must prevail.
That is to say, in the hypothesis that there is no increase in value in the transmission of the land, the tax will not be generated, and if said increase in value is lower than that demanded by the City, by applying the legal percentages, Real basis for calculating the taxable base of the tax, the contradictory expert evidence being a suitable test mechanism to fix it.
Thus, in general, the taxpayer should commission the appropriate expert evidence to justify that the increase in value experienced by the land is non-existent, or at least lower than that resulting from the municipal liquidation. However, the Superior Court of Justice of the Valencian Community has taken a step further in this line of jurisprudence, and so in recent Judgment has come to admit that it is sufficient to deduct indirectly from the deeds the lowest value of the property at the time of The transmission to the acquisition, without the need to provide expert opinion to prove that loss of value of the farm. We will see if this judicial pronouncement is generalized, which would simplify the process of challenging these tax settlements.
In a very recent case, the Constitutional Court has considered that the formula used to calculate the tax causes it to be paid equally in those cases in which the value of the land has not been increased or even decreased. Which lacks any reasonable justification to the extent that, by imposing on taxable persons the obligation to bear the same tax burden as corresponds to the situations of increases arising from the passage of time, situations of inexpressive facts are being taxed Of economic capacity, which contradicts frontally the constitutional principle of economic capacity. For this reason the Constitutional Court has declared partially unconstitutional and invalidated several precepts questioned of the Norma Foral reguladora of this Tax in the Historical Territory of Guipúzcoa, only when they subject to taxation inexpressive situations of economic capacity, preventing to the taxpayers to prove that it did not take place effectively An increase in value, and therefore the legislator is responsible for making the necessary modifications or adaptations in the legal regime of said tax.
Do not hesitate to contact PAJARES & ASOCIADOS ABOGADOS to analyze the possibilities of opposing the settlement of this tax.