The approval of reduced IMI rates to be applied to urban buildings leased for housing, as well as to households dependent on the number of dependents, are the great novelties of the proposals approved in the last Chamber Meeting that are now followed for discussion and approval by the Municipal Assembly .
The lacobrigican executive appreciated and deliberated at the last meeting of the House on proposals for municipal taxes to be collected in 2019. In relation to the Real Estate Tax (IMI), the proposal was to apply the 0.8% rate to rural buildings and maintain the 0.35% for urban buildings in all parishes. The buildings that have been vacant for more than a year and the ruined buildings in the Urban Rehabilitation Area (ARU) in the city of Lagos will be maintained for triple the IMI rate, while the real estate in the area of ARU in the period of 1 from November 2017 to November 30, 2018, will have a 30% deduction of the rate valid for a period of 5 years. However, these worsening and benefits are identical to those fixed in the previous year, with the novelty of the reductions this year, for the first time, approved for urban buildings leased for housing, which will have a reduced rate of 20%, and for households depending on the number of dependents that the members, who will have a fixed deduction of € 20, € 40 and € 70, if they have, respectively, one, two and three or more dependent dependents. The financial impact of this measure of support to families represents less 73 thousand euros of municipal revenues. The reduction of the IMI rate for leased buildings is aimed at stimulating the housing rental market. If these proposals, approved by a majority in the Chamber, are also approved by the Municipal Assembly, the revenue forecast to be collected by IMI in 2019 will be € 11,972,000.00.
This session was also approved, by majority, the launch of a spill over companies with a turnover of more than 150 thousand euros to continue the requalification and repair of the municipal housing stock, as well as municipal equipment. For this purpose, the Municipality intends to count on the solidarity of the companies, translated in the application of a rate of 1% on the taxable profit of the same. This measure leaves out the smaller companies, ie those with a turnover of 150 thousand euros or less, and this exemption is intended to act as an incentive to the local economy. In presenting the matter in Meeting of the Chamber, Hugo Pereira, Vice-President and Councilor responsible for the financial area, explained that large companies, even though they do not have fiscal headquarters in Lagos, will contribute to this collective effort, since it will be applied to them the rate calculated according to the number of jobs they have in the municipality. With this measure the Municipality expects to raise a revenue of about 565,000.00 €.
Regarding the determination of the variable participation in the IRS, the proposal and deliberation was to maintain it at 4.5%. It is recalled that this fixation results from the Financial Rules of Local Authorities and Intermunicipal Entities, according to which municipalities are entitled, each year, to a variable participation (up to 5%) of the IRS of their citizens, and it is up to the Municipalities to fix the percentage. If the 4.5% fixation is confirmed by the municipality's deliberative body, an estimated revenue of approximately one million euros (€ 1,049,000.15) will be collected in 2019.
To criticism from the opposition, which pointed to the high tax burden to which companies and citizens will be subjected in 2019 through the State Budget, Maria Joaquina Matos, president of the municipality, responded by recalling the financial dimension of the projects that the Municipality has in portfolio and provided for in the 2019 Plan's Large Options, which represent a lot of investment, not allowing abdication of municipal tax revenues, such as the tax and other approved in this session. For the mayor, these are urgent works that will greatly benefit the lives of residents, but are not only feasible with the 3 million budget transferred from the State Budget, which represents only 5% of the Municipal Budget . However, it has left the promise that, as the strict management that has been pursued will allow to consolidate even more the financial situation of the Municipality, the intention will always be to reduce these rates.
In this session was also approved the proposal to set the Municipal Fee for Rights of Way (TMDP) at 0.25%. Under the Electronic Communications Law, it is applied to companies that occupy the public space to install networks and offer electronic communication services accessible to the public, and they can not impute the payment of the TMDP to the final customers.