In a breakthrough announcement, Loulé Council is to reduce property taxes in 2016, thus fulfilling an election promise from 2013.
According to today’s welcome news, "after two years in which the budget basically went through financial consolidation, the municipality is currently in a position to lower taxes, a situation now possible because the municipality of Loulé paid its 2012 Programme to Support Local Economy loan at the end of 2014.”
In order to relieve family finances, the council "will lower the general rate of council tax (IMI) and reduce, according to the maximum permitted by law, the IMI rate for families with children, a possibility afforded to councils in the 2015 State Budget."
Thus, the rates will be reduced "by more than 2.5% from the 2013 figure and 0.38% for urban buildings, thus achieving a 5% reduction in a two year period."
The council is reducing its rates demands by 10%, 15% and 20% for families with one, two and three children.
Good news for inland areas also, "In the wake of what has been approved in recent years, with a view to combating the desertification of inland areas, the parishes of Alte, Ameixial, Salir and Querença, Tôr and Benafim will have a 30% drop in IMI for residents."
The council also is chiselling away at income tax for its residents as it has control over part of the current austerity income tax surcharge which it is reducing by 20%.
The council’s 2016 budget states that "this will be the last year in which the municipality will collect all of one of its main sources of revenue – Property Transfer Tax (IMT) which from 2017 will start to be reduced by 1/3 in 2017, 2/3 in 2018, to zero in 2019.
Despite this severe reduction in council income from house sales, the council claims that as a result of the financial balance achieved in the last two years, "the Council of Loulé will have no financial problems."
"The efforts to restrain expenditure and the favourable changes in revenue have allowed a recovery to 'municipal autonomy' so we gradually can reduce council tax rates," said the Loulé executive, adding that it is "in support of individuals and families."
How Portimão’s councillors must weep when looking at their crooked past leadership, the €100+ million in municipal debt and their inability to function to the benefit of their residents.
