The Municipal goodwill always pay, although the property is sold cheaper than when we bought it.
Despite some statements that question the payment of Tax Increment Value of Urban Land, known as goodwill, in the event that a property is sold for a lower price than it was purchased and, therefore, without any gain, Hacienda has clear. ()This tax is always paid.
Treasury said that in establishing this tax, You can choose among various formulas to determine the increase in value of the land, has opted for in Article 107 the Consolidated Text of the Law Regulating Local Tax (TRLRHL), and have set by law all elements of the tax according to the method of quantitation. In colloquial say that the tax is calculated based on the value of the property at the time of paying the tax effects of IBI. Further, Law only considers the assessed value at the time of transmission, not considering other values, as may be the price of the transmission, the market value at that time, what the assessed value when the soil or acquisition value is acquired.
And this is done so that the end of this tax is not tax increases “real” caused by the owner of the land as the difference between sales prices and buy, but seeks to tax the increase in land value as a result of urban action of the municipality is located. With this tax, therefore, it is intended that the taxpayer return to the community of the benefit obtained by it. The community involvement in urban capital gains has its support in the Spanish Constitution. His article 47 provides that “community share in the benefits generated by urban activities of public entities.”.
It falls within the field of undeserved or unearned gains on immovable nature, namely, those gains on land not due to the activity of individual, causes strange but at the same, such as the simple growth of urban centers. This justification has been traditionally recognized by doctrine and jurisprudence.