**Burgueño Backs Down: Cuts Out Multi-Year Contracts from 2025 Revenue Law**
The mayor has decided to retract his initial intention to establish multi-year contracts aimed at ensuring financial sustainability for strategic projects and essential services. During a recent announcement, he informed legislators that this aspect will be removed from Article 11 of the 2025 Revenue Law, which is projected to amount to 12.5 billion pesos.
According to the municipal treasurer, 45% of taxpayers in Tijuana, particularly those with undeveloped land, fail to pay property taxes. Tijuana currently ranks second worst in per capita collection for this tax. To address this, the city plans to initiate a series of property seizures, focusing on medium and large-scale businesses while sparing smaller enterprises and residential properties.
For the upcoming year, the proposal entails charging the full value of constructions in property taxes to align with federal standards, thereby opening opportunities for more federal and state funding. Despite this approach, residential properties will be taxed at just 25% of their construction value from January to March, and 50% thereafter in 2025. Buildings with five or more floors will receive a fiscal incentive of 50% from January to March, increasing to 75% from April onwards.
The 2020 tax table will continue to be applied, believed not to negatively impact vulnerable sectors. Areas like La Morita will maintain their current rates, while industrial zones such as Otay and commercial areas like Zona Río will see moderate increases.
The proposed changes are expected to yield an increase of nearly 16% in property tax collection, amounting to 1.34 billion pesos. Even with these adjustments, some legislators, including those from the Green Party, are advocating for an additional surcharge dedicated to enhancing public safety, aiming to generate 120 million pesos to improve resources for police and firefighters.
**Secondary Article**
In a related development, the ongoing debate around property taxation in Tijuana has sparked discussion about broader fiscal strategies in Mexico. Across the country, municipalities are exploring alternative methods to bolster public funding without putting excessive strain on taxpayers. Recent initiatives include flexible payment plans, targeted surcharges for specific public services, and increased transparency to build public trust.
Moreover, the Mexican government is considering tax reforms aimed at ensuring more equitable distribution of tax burdens across income brackets. These efforts are part of a larger strategy to address issues of non-compliance and improve public service delivery. As cities like Tijuana explore these fiscal policies, they highlight a larger national conversation about sustainable economic management in the face of growing urban demands.
Stay tuned to TJGringo.com for updates on these stories and more as we continue to navigate the evolving landscape of fiscal policy in Mexico.