Xàbia to lower IBI to compensate for compulsory rise in waste collection tax
In addition, a 60% reduction in the water connection fee and several discounts will be applied for low-income families.
On Tuesday, Xàbia Council will be considering for approval a proposal to modify the IBI (property tax) and water tariff rate in a bid to compensate for the council’s legal obligation to increase the waste tax.
The increases is a result of a change in the way that properties will be charged for waste collection, which would mean residents will contribute to the waste collection service according to the cadastral value of their property. Thus, the waste tax on homes will range from €125.44 to €273.36. As a reference, an average home, with a cadastral value of €57,379.94, will now pay approximately €134, which represents an increase of €9 compared to the previous year.
To mitigate this increase and alleviate the burden on the taxpayer, a 2.35% reduction in the Property Tax (IBI) has been proposed so that the average home that was paying approximately €487.63 in IBI would now pay €476.25, which represents a saving of €11.48.
In order to make this saving effective for the residents’ economy, the local council would apply an extra increase in the waste tax for tourist accommodation, as an economic activity, which would pay €20 per year per accommodation place.
This regulation responds to compliance with Ley Estatal 7/2022, where 100% of the cost of the waste collection service must be financed by taxpayers. Mayor Rosa Cardona explained that this measure comes from a law dictated by the central government: “It is important to highlight that Europe established guidelines in which it proposed more sustainable waste management. It was the central government that opted for the regulation of the municipal waste tax so that the collection of the tax covers the real cost of providing the waste collection service, which leads to applying the increase in the residents’ bill. There is no possibility of financing it through the municipal budget, which has forced us to propose this financial balance.”
In addition, with low-income families will benefit from the following proposed discounts: 50% for retirees and pensioners with low incomes (the previous discount will be increased by 10%), a new 50% discount for people at risk of social exclusion, and 50% for large families. It should be noted that these discounts will only apply to residents registered in Xàbia.
The local government will also agree to reduce the water supply connection fee by 60%, another commitment that it has been working on for some time.
