The Reus City Council approved on Friday, May 15, a modification of the IBI tax ordinance to encourage the promotion of affordable housing in the city. The change incorporates a bonus of up to 95% of the fee for protected housing linked to the Generalitat de Catalunya's Pla 50.000, provided that it is intended for social rent and is declared of special municipal interest or utility.
The measure comes with an inherent paradox. The same municipal agreement states that the IBI or the repair, maintenance, or improvement costs corresponding to the property can never be passed on, a limitation that the council admits may discourage investors who join the plan despite the new tax incentive.
The new IBI aid forces a choice between 95% and the already existing bonus
The bonus approved for developments linked to Pla 50.000 will not be cumulative with the existing one for protected housing. Owners will have to opt for one of the two tax benefits provided for in the ordinance.
Until now, the current regulations maintained a bonus of 50% of the IBI between the first and tenth year, and 25% between the eleventh and fifteenth. With the reform, Reus opens the door to a reduction of up to 95%, but only for protected properties intended for social rent within the plan promoted by the Generalitat de Catalunya.
Furthermore, the plan's resolution sets a condition that affects the economic balance of the developments. The rule expressly states that the property cannot pass on either the IBI or the costs associated with repair, maintenance, or improvement works.
The city council itself frames the possible brake on investment there. The municipal corporation maintains that this impossibility creates a differentiated regime for these homes and that it may have disincentive effects among those who consider joining the program.
Reus reinstated the 25,000 euro cap on the activity tax
In the same session, the plenary also approved modifying the activity tax. The change reinstates a maximum fee limit of 25,000 euros.
The purpose of this cap is to guarantee tax proportionality and adjust municipal revenues to the foreseeable cost of the service. The agreement was processed along with the IBI reform and changes to the cemetery tax.
The cemetery tax reduced the duration of new concessions to 50 years
Another of the approved agreements sets a transitional regime for the cemetery fee that will be in force until December 31, 2031. During that period, old concessions may be regularized with reduced rates.
At the same time, the city council adapts the maximum duration of new concessions to 50 years, compared to the previous 75 years, in accordance with Law 33/2003.