City councils raise taxes due to increased expenses

If you are one of those citizens whose taxes will be raised by your City Council next year, do not feel alone.

Oliver Thansan
Oliver Thansan
29 October 2023 Sunday 10:23
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City councils raise taxes due to increased expenses

If you are one of those citizens whose taxes will be raised by your City Council next year, do not feel alone. The same thing will happen to many residents of other towns. Although with different intensity, a good part of the Catalan councils are approving ordinances for 2024 with an increase in tax pressure. A fact that is explained by different causes: from the general increase in prices that also affects municipal administrations to their historical lack of financing and adaptation to higher-ranking regulations. A tax increase that occurs when neighbors also suffer the effects of inflation. And, it is not trivial to remember, it coincides with the first year of the mandate. Or what is the same, it occurs just after the municipal elections in May.

While in Barcelona there has been no agreement to approve the new tax ordinances and as of January 1 the current ones will remain in force, in the metropolitan area l'Hospitalet gave the green light to an increase in the IBI – the highest tax of the councils – of 3% . In Castelldefels and Gavà the increase will be 9%, while in Cornellà and Sant Boi it will be 7% and in El Prat it will be 10%. To the north of the capital there is some contention. Badalona decided to freeze the IBI although the rest of the rates will grow by 2.5%. In Santa Coloma de Gramenet the increase in the IBI, which can be paid in three installments, and the rest of the taxes will be around 5%. Already in Vallès, in Rubí the IBI will rise by 12% and in Cerdanyola by 11.6%. In the capital of Maresme, Mataró, the increase will be 3.5% and in Alt Maresme, mayors of ten municipalities agreed to show their concern about the forced increase in municipal finances of between 5% and 7% because, They assured, of the “economic imbalance” of the municipalities.

The situation is similar if one moves away from Barcelona. The tax increase will be widespread next year in Camp de Tarragona, in municipalities on the Costa Daurada and also in Terres de l'Ebre. The mayor of Tarragona, Rubén Viñuales, announced that the council he presides was practically in a “bankruptcy” situation. There the IBI will rise by 7.5% and the terraces by 20%. In Reus, the IBI increase will be 12.5% ​​and in Cambrils 9.5%.

In Girona the IBI will grow by 3.6%. In this part of the Catalan territory, Lloret de Mar, with an increase of 11.5%, and Platja d'Aro, with 13%, are some of the municipalities where this tax will increase the most.

Lleida is the exception and there the IBI will drop by 2%, although fifteen rates will grow by 5.8%. There are many capitals in the Ponent region that have not yet approved the ordinances. Tàrrega, which has done so, froze most of its rates and La Seu d'Urgell raised the IBI by 3.5%. The Vielha e Mijaran City Council approved a general update of 14.9%.

Why is this general increase occurring? “The financial structure of the town councils is not well resolved and they have suffered a structural deficit for many years,” responds Meritxell Budó, president of the Association of Municipalities of Catalonia (ACM) and mayor of La Garriga (Vallès Oriental). “The State takes the majority of income, the rest goes to the autonomous communities and the councils are the last,” she laments.

Eduard Rivas, president of the Catalan Federation of Municipalities (FMC), also believes that local financing is an unresolved issue. In fact, they have been calling for an improvement for a long time. “The city councils take charge of underfunded powers that belong to the Generalitat,” says the also mayor of Esparreguera (Baix Llobregat).

But why this rise now? “In addition to the structural one, there are temporary reasons,” says Rivas. “The price of living has increased, also for the municipalities, which also buy. It is very difficult to maintain services at the same price. In addition, the capital gains ruling also affects,” he says.

Last year the inflationary clouds were already tormenting, but the municipal elections were just around the corner. “Perhaps some city council thought it was not the best time. It is also true that the first year of the legislature is key to planning,” considers Rivas. But for the president of the FMC twelve months ago, a “perfect storm” occurred on the calendar unrelated to the elections: the rise in prices. “Many governments acted with extreme caution, it seemed that the world would end,” argues Rivas. Thus, he preferred to freeze, waiting to see what would happen.

In a context where families suffer from inflation, "neighbors can end up getting angry," says Jordi Giró, president of the Confederació d'Associacions Veïnals de Catalunya (Confavc), who warns that differences between municipalities can create "comparative grievances." He does have “a certain impression” that the electoral calendar has something to do with it, although he guarantees that the councils need “more resources.” “Where there is a synchrony is in waste collection,” says Giró.

Certainly, waste collection rates deserve a separate chapter with large increases like that of Sabadell (see attached information). But these increases are the common denominator in the vast majority of Girona town councils. For example, in Roses it will increase by 50% and in Girona, Salt, Lloret or Sant Feliu de Guíxols, 25%. Although it is not the only one, one of the reasons for this growth is to adapt to the new supra-municipal regulations that dictate that, starting in 2025, municipalities must cover the costs of waste collection, transportation and management.

However, the rate of rubbish will rise abruptly by 12% in Tarragona, 14% in Reus, 14% in Tàrrega, 19% in La Seu d'Urgell, 33% in Rubí or 30% in Gavà.