Since the law was passed giving municipalities the right to collect property taxes, collection has increased by 2% annually.
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...
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."