Around 90,000 Valencians have the right to claim from their town councils the Capital Gains Tax they paid between 2013 and 2016, since they sold their homes below the price they bought and therefore didn’t record an increase in their private income.
A ruling of the Constitutional Court endorses this group of citizens for the local government to return the money if they made the transmissions 4 years ago. Since the ruling was heard in February of this year, dozens of lawsuits have proliferated to demand the return in court.
At the state level, the number of homes affected by having been transmitted for a value lower than the acquisition, would be around 550,000 properties, according to calculations made from statistics of evolution of the price of housing, data from the Ministry of Development and the College of Property Registrars.
The citizen has the right to demand the return of the Municipal Capital Gap Tax, including purchase and sale operations, as well as donations, swaps and inheritances, which are also taxed with the payment of this tax.
The central executive has to regularize those aspects of the Law of Local Taxes that aren’t constitutional, according to the TC, because the rest of the articles are correct. However, to date the state norm applied by the municipalities hasn’t been reformed. Therefore, everyone has acted according to their intuition or common sense.
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