Bill would let town councils cut property tax for COVID-hit businesses

Automatic summary, not yet reviewed

1. The bill would add a paragraph to the local government finance law so that town councils could, if they choose, grant a rebate of up to 90% of the property tax (IBIIBI Impuesto de Bienes Inmuebles: a local tax paid on owning a home, business premises or land in Spain.) on real estate used for any economic activity suspended, restricted or affected by the COVID-19 state of alarm. It would only apply when the tax is paid by the person actually running that activity.
2. Each town council would set the details of the rebate, such as its length and yearly amount, in its local tax ordinance.
3. The rebate could be applied in the 2020 tax year and extended through the 2023 tax year.
4. The law, if passed, would take effect the day after its publication in the Official State Gazette (Boletín Oficial del Estado).

Who it affects

• Companies, small and medium businesses, self-employed workers, shops, the primary sector and entrepreneurs affected by the COVID-19 crisis: Could get a rebate of up to 90% of the property tax on the real estate where they operate.
• Town councils (Ayuntamientos): Could set up the rebate on a voluntary basis, defining its scope in their local tax ordinances.

Words worth knowing

IBI

Impuesto de Bienes Inmuebles: a local tax paid on owning a home, business premises or land in Spain.

Bonificación

A rebate or discount on a tax payment.

Ordenanza fiscal

A local tax ordinance: rules each town council approves to regulate local taxes in its municipality.

Cuota íntegra

The full tax amount before any discounts or rebates are applied.

Potestativo

Voluntary: those who may do it are not required to do it.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries