However, the amount being collected for property taxes could grow substantially because their registered values are much lower than their real values.
In their analysis of the issue, Daniel Shea of the Costa Rican Tico Times, indicates that according to a recent study by the Technical Standardization Entity (ONT) of the Treasury Department, where they evaluate the value of properties in Costa Rica (the first one of this type in 10 years), 92% of properties have a value listing at $20,000 or less...
The bonanza the construction sector has enjoyed in recent years could be coming to an end.
The recession in the United States has caused many real estate projects to stall as a result of declining confidence among some foreign investors who now see an uncertain future.
Signs of this include the pessimism reflected in low North American consumer confidence and the loss of at least a quarter of a million employees so far this year there. Other factors include the sizable increases in oil prices and the fall in property values.
Centralization, lack of resources, poorly defined competitions, are some of the most serious problems faced by cities in Central America.
Despite being the main actor when it is time to provide the communities with the goods and services that they need, no country in the area stands out in giving local governments the tools they need to carry out their duties, according to the "Comparative Study on municipal finances for local development in Central America and the Dominican Republic."
Noting that the right to property was violated, the tax that the Mayoral Office of San Salvador charged private companies using a calculation based on their assets has been declared unconstitutional.
The ruling in question eliminates Article 1.021.1 from the rate of Excise Taxes set by the Municipality of San Salvador, San Salvador department, which stated that the municipal tax collection must be calculated based on the assets of companies.
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