The Veracruz government is preparing a strategy to increase property tax collection in the municipalities, a measure that involves strengthening the collection of the main municipal tax paid by owners of homes, land, businesses, and other properties.
The Secretary of Finance and Planning, Miguel Santiago Reyes Hernández, reported that, at the instruction of Governor Rocío Nahle García, the department will work with the Ministry of the Interior and the Cadastre offices of the municipalities to improve property tax collection, acknowledging that Veracruz ranks among the states with the lowest collection of this tax.
“Yes, we are going to work from the Ministry of Finance, at the Governor’s instruction, and look for ways to increase property tax collection in the municipalities, how we can strengthen it together with the Ministry of the Interior (…) so that the Cadastre offices work with all the municipalities on property tax issues, so that we can recover more resources, so that there is more income, and so that these savings that the municipalities will have today are used for the development of the people of Veracruz.”
The official explained that property tax represents the main source of revenue for municipalities, so improving its collection will allow them to have more resources to finance public services and infrastructure projects.
“Property tax is the most important source of income for municipalities. Veracruz has a significant opportunity because we rank among the lowest nationally in property tax collection.”
Reyes Hernández announced that, following a meeting with the Ministry of Finance and Public Credit and the country’s finance secretaries, the state government will develop a plan to support municipalities in strengthening their revenue streams.
Cadastral update, one of the mechanisms
The announcement comes after the Veracruz Congress authorized municipalities to sign collaboration agreements so that the Ministry of Finance and Planning (Sefiplan) can collect property tax.
Since Rocío Nahle took office, the State Government has implemented various initiatives to strengthen state revenue collection, including the vehicle registration renewal program, motorcycle regularization, and the vehicle inspection and license plate exchange process for public transportation.
Now, this strategy will be extended to the municipal level by strengthening local government revenues.
Source: lasillarota
