The increases in Real Estate Taxes and the waste collection rate are increasingly being seen across municipalities of the province of Alicante. It doesn’t matter about pre-election pledges and promised tax cuts as we have already seen a number of local municipalities going back on their manifesto assurances.
Acronyms are not important, the increases are being applied across the board by PP, PSPV and CompromÃs, there is no distinction. To the north, Dénia, Ondara, Gata, Benissa, Altea, La NucÃa, l’Alfà s and Benidorm while in the south of the province, Pilar de la Horadada, Redován, Rojales, Guardamar del Segura, and this week Santa Pola and Rafal. The increases are being announced not so that they can come into force in the 2024 budget.
The increase in the IBI represents income so there is more room for manoeuvre in the 2024 accounts. Behind these decisions there are many arguments. For example, the councils have to meet the salary increases of civil servants, approved by the Congress of Deputies. There are increases to meet additional energy costs and the need to finance investments or maintain the supply and quality of municipal services. This is what the mayors who are promoting the measure are stating.
Perhaps the highest increase was in Benidorm, 23% although we understand that Santa Pola is finalizing a 28% increase, according to a report by the opposition reported on Monday.
If the Real Estate Tax and other taxes are increased to generate cash in municipal bank accounts, the waste rate has several derivatives. On the one hand, there are the increases that the municipalities of Marina Baixa and Alta have approved for the new rates charged by the regional landfill, located in El Campello, derived from the entry into force of a new law.
This new law establishes a new tax on the disposal of waste in landfills, incineration and co-incineration of waste. This tax is 30 euros per ton and must be assumed by the town councils themselves.
Almost all increases are around 20%, although some municipalities such as Benidorm, Altea and La NucÃa, far exceed this figure. In Novelda, the increase is 98%.
With the rate for the collection of household waste there is less flexibility. By 2025, the costs must be covered by the monies that are raised, without there being any contribution from municipal accounts.
The Torrevieja waste collection fee paid by residents only covers 25% of the cost of the service although the City Council rules out raising the rates, Currently it only collects 5.8 million euros per year of the 24.3 million it pays to Acciona. Quite how it is going to cover the 18.5 million euro deficit without raising taxes is anybody’s guess!
