Mayors divide over property tax exemption for seniors and begin Senate lobbying

A cross-party group of mayors will arrive at Congress on Monday to meet Senator María José Gatica and discuss the property tax exemption included in the megareform.

Finance Minister Jorge Quiroz ended negotiations with municipal leaders without granting all their demands for compensation over reduced municipal revenues.

The mayors arrive divided to the talks. Ruling coalition mayors such as José Manuel Palacios, Felipe Alessandri and Catalina San Martín support a full exemption for those over 65, arguing it is unfair to charge the property tax for life.

Opposition mayors such as Karina Delfino and Tomás Vodanovic reject exempting seniors with sufficient resources and had proposed targeting the measure at monthly incomes above three million pesos or properties valued over 250 million.

The meeting with Gatica will take place at 15:00 and follows prior encounters with Senate President Paulina Núñez. The deadline for submitting amendments was extended until Friday.

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Chilean government officials meeting to discuss property tax exemptions in a reconstruction megareforma.
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Government closes door to targeting property tax exemptions in Megareforma

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Representatives of the Chilean Association of Municipalities met on Thursday with Finance Minister Jorge Quiroz and other Executive members to discuss the national reconstruction Megareforma.

Huechuraba mayor Maximiliano Luksic backed the property tax exemption for first homes of those over 65, while calling for a Senate amendment so those with means still pay.

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Chile's Reconstruction National bill proposes a full property tax exemption for people over 65 on their primary home, sparking alarm among mayors over municipal funding and the Common Municipal Fund. The government projects a US$200 million revenue drop, with compensation details unresolved. Several mayors decry the impact on basic services.

The Finance Committee of the Chamber of Deputies approved on Thursday the idea of legislating the national reconstruction megareform project. The initiative advanced with eight votes in favor from ruling party lawmakers, four against and one abstention from the PDG.

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The Partido de la Gente announced on Wednesday that its agreement with the government to back the megareform bill has collapsed, accusing the administration of failing to include middle-class benefits such as VAT refunds on medicines and diapers. The decision marks a sharp turn after weeks of talks and internal divisions within the party.

Finance Minister Jorge Quiroz tempered statements by his colleague José García Ruminot on possible adjustments to the National Reconstruction Plan, amid internal tensions in the ruling coalition.

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The Chamber of Deputies' Finance Committee approved the core tax measures of the megareform promoted by President José Antonio Kast's government in the early hours of Thursday.

 

 

 

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