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View Full Version : City council taxes challenged



NewsWhore
01-11-2011, 02:30 PM
A recent decision by the National District Municipality to tag on a new tax on real estate in Santo Domingo is being dubbed illegal. El Caribe interviewed tax advisor Jose Segura who says that the creation of new taxes on constructions and on empty lots, condominiums and single-family homes violates the Constitution that establishes that only Congress can create new taxes. Furthermore, El Caribe reports that it becomes a charge parallel to that established by the central government in Law 18-88 on luxury housing and empty lots. City council members approved the new taxes in December.

These are lots from 1-200m2 that would be subject to a municipal tax of RD$750, those 201-400m2 RD$1,500, 401-600m2 RD$3,000. From 601 to 1,000m2 RD$4,500 and from 1,000 to 2,000m2 RD$6,000. Over 2,000m2 the rate is RD$7,500. In addition, the dwellings will pay RD$300 per street-facing lineal kilometer.

Moreover, single-family houses up to 150m2 will pay RD$18,000, from 151 to 300m2 RD$30,000 and from 301 to 500m2 RD$60,000. From 501-600 RD$150,000 and 601m2+ will pay RD$200,000.

Apartments of up to 100m2 will pay RD$9,000, 101-200m2 RD$15,000, 201-300m2 RD$30,000, 301-400m2 RD$70,000, 401m2+ RD$100,000.

Motels would pay RD$7,500 per room, apart-hotels RD$5,000 per room and hotels up to 25 rooms RD$4,500 per room.

The National District Municipality argues it needs the funds to meet the city's needs. The Municipality came under criticism for spending upwards of RD$11 million to build the so-called Zooberto Park in Santo Domingo.

The new taxes are due on 15 February and 1 August of every year.

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