Property owners line up to pay taxes at a government office. Property owners line up to pay taxes at a government office.

Low property taxes might soon disappear

Finance Secretary sees them as 'a great opportunity'

Property owners in Mexico enjoy very low property taxes but that could soon change.

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Mexico’s Finance Secretary said on Tuesday during the 100th general assembly of the American Chamber of Commerce of Mexico that the tax, known as predial, represents “a great area of opportunity.”

José Antonio Meade said property taxes achieve two important objectives: as a revenue source for municipal governments and as a tool for urban development.

But the tax rate is low compared to other jurisdictions.

He said the tax generates the equivalent of just 0.2% of Mexico’s Gross Domestic Product while in Latin America as a whole it represents 1.7%.

For member countries of the Organization for Economic Cooperation and Development the percentage rises to 2.2% and in the United States it’s 3.2%.

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Given tight finances due to the economic situation it was time to take advantage of the municipal tax base, Meade said.

Ideally, he said, local governments could finance their requirements with their own income.

Source: CNN Expansión (sp)

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  • miabeach

    Great unrest will soon rip through Mexico and most of Latin America. For generations they were told the virtues of socialism and communism and then forced to sneak into a country whose language and culture they reject and a country that rejects socialism and communism to feed themselves. And now after socialism failed them and communism failed the United States is failing them and they need someone to blame.

    • Three score and ten

      HUH??

    • Beau

      Whatcha’talkingaboutwillis?

      • miabeach

        Latinos not being able to sneak into the USA for some fast money are good nag to become racist increasingly demanding of their own ruling class. Latin America can’t lie to them anymore and the people will demand a good life that has been denied to them by corrupt rulers. Big trouble coming. Vicente Fox types aren’t going to suddenly offer to pay taxes to help poor Mexicans. Think about it. Wealthy Mexicans despise the poor Mexican peasant class.

        • cris_37

          What?

          • J. M. Davis

            quote “Think about it. Wealthy Mexicans despise the poor Mexican peasant class.” The sad truth is that the wealthy, connnected, elite ruling class in the US despise the working middle class just as much. The ablility to escape north to the better conditions for workers in the USA has been encouraged and relied on by the ruling class as a safety valve to keep things from blowing up.

  • Mark Schneider

    Since I own a home in Mexico, I know the property taxes are very low. I also know that many of my neighbors (who also own their houses) are living hand-to-mouth and a property tax increase on them would be devastating.

    Perhaps Mexico could raise property taxes for (1) any home or condo that is rented out; and/or (2) any home or condo that is owned by a non-Mexican.

    • J. M. Davis

      Raising the tax on Non-citizen owners would never survive a challange with the Human Rights Comission of Mexico. Besides if they did the recipical tax in the USA would be awful. The US has already been discussing recipical taxing. Mexican citizens would throw anyone out of office who raised the Predial that much.

    • David Nichols

      One one problem with that concept is that a substantial number of non-Mexican owned homes are located within the exclusion zones and the actual “owners” are the banks that issue the fidecomisos to the non-Mexicans…
      They could, of course, just apply the tax to properties which are under fidecomisos, but it would only be a bandaid solution–to generate the income they want, they need the macro numbers…
      BTW, CFE and CAPDAM already charge much higher rates to properties designated as “tourist area”

    • Anthony Stein

      Great idea!..no more Bueno, Barata and Bonita for foreigners living off the goodwill of the Mexican people!…but here is a big but?….the extra tax money can’t just disappear in some politicians pocket!..no more stealing!…build a school!…do something good for the people!

      • Mark Schneider

        Many of the non-Mexican “owners” I have talked to agree that their property taxes could be raised … at lot … without harming them. And I agree with your concept of “earmarking” the extra monies for some specific purpose(s).

    • WestCoastHwy

      if you are a gringo in the Forbidden Zone, you do not own your home, the Mexican Proxy Bank owns your home, you just think you do. LMMFAO! Unless you have a Mexican Wife and Children.

      • Mark Schneider

        And if you have a “mortgage” in the USA or Canada, just WHO owns your home? Yep, the bank.

  • WestCoastHwy

    Crab Cocky, when Mexico lowers or removes other taxes, DON’T touch property tax. It would just be more monies available to leave town with in the Political Climate of Mexico.

  • SickofLiberalbs9999

    José Antonio Meade said “property taxes achieve two important objectives:
    as a revenue source for municipal governments and as a tool for urban
    development.”

    Every additional peso should go to pay for more police and security at the street level for average citizens.

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