Tuesday, October 30, 2012

Property Taxes: Myths and Legends

On October 16, before a large audience at the Miramar Building Audience, our Councilor of Finance and Public Innovation, Jordi Mas, presented in open court the reasons why we were forced to revise property tax and clarified the doubts of owners properties located in Sitges. On Wednesday, I myself had the opportunity to attend a similar event with residents of Garraf and Les Botigues. I explained them the reasons and motives that compelled such an action.

For the Government I preside, it is not a satisfaction to raise taxes, let alone in times of crisis as we live. But there are times that Governments are bound to take unpleasant, unpopular and painful solutions. Even including decisions forced by mandatory law. This is one of those times.

The economic situation of the City Council is, as we all know, very rough and complex. A year and a half ago we inherited an unsustainable debt and deficit that requires urgent and essential measures for its reduction. Since we won elections and formed government, we have applied a policy of austerity that notably reduced spending. For example, salaries of elected and trust officers were reduced 400,000 Euros annually. And all items relating to investment agreements, grants and other activities have also suffered forceful drastic reductions. Let's not remember that budgets allocated to festivities were also drastically cut (the budget of our Main Festivity dropped by 50% over their original budget). Representation went down more than 80%. There was no other option due to the existing high debt and deficit. And those who now question this decision were the ones that were not rigorous and serious enough to do it when they were in power. They did not show any responsibility to people living in Sitges..

The increase in Property Tax will offset the dificcult situation faced municipal finance provoked by irresponsible and poor management of the past government. The revision of property tax is regulated by the Ministry of Finance and Public Administration that determines that the assessment of property values must be madeevery ten years. The previous revision was carried in 1994, so the city of Sitges did not comply with the law for years. And not only the law, but the fact that property taxes were not raised in better economic times, as would have been more reasonable, forced us to do it in a very complex economic condition for all. The rate increase was planned to be done steps during 10 years. Next year, the average increase will be 20%: for 2014 the forecast is at 6%, and in 2015, 4%.In any way, as some groups have expressed in a malicious way, the increase does not stands at 300% or any other figure than those just given.

We are fully aware that this is hardly a measure appreciated by taxpayers, but I want that the all the residents of Sitges know that there was no other option if we did not want to take City to a dead end, the consequences of which would have been catastrophic for everyone: residents, businesses and town.
Desiring to make more bearable the increase, we enabled payment facilities (can be split into three parts) and at the same time, we have turned a line of funding for people over 65 years, since this is one of segments of the population that accumulates more difficulties. The recipients of the grants can process them through Oficina d'Atenció Ciutadana (Public Attention Office) until next 31 October.