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Predial increase of 300%


barrbower

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Sup. Const. is the size of ANY PERMANENTLY COVERED area on the property... doesn't matter if there are walls... if it's got a roof (like overhangs and porches) it's included in the size which is measured in square meters.

Area título (or Sup. Terr.) is the size of the LOT and is in square meters

Valor fiscal (appraised value of the property) is in pesos.

 

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Only a roof. I put a cute little 3 tile deep techo across the entire front of my property and also above the automatic garage door on the inside... just looks better but doesn't actually do boodiddlysquat.... that's why my "covered" area went up. Sigh.

A higher appraisal is actually beneficial for when you sell because the possible capital gains is based on the difference between sale price and appraised tax value.

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A dispute is really needed.  Why pay higher taxes when they probably won't have to pay capital gains as I would imagine they fall in this category:

 

Primary Residence Tax Exemption

There is a provision for foreign residents of Mexico to be excluded from capital gains tax for their primary residence.  The requirements to establish residence in Mexico can include:

Status of Residente Permanente

Longevity owning and residing at your property – including proof by having documents in your name (ie CFE Bills, Telmex Bills)

Mexican Bank Accounts

Mexican Drivers License and Mexican Registered Vehicles

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Great information Ferret and Ibarra, thanks!!

I though capital "gains" was based on the difference between purchase and selling price minus adjustments for inflation depending on how long one owns the property.  How would tax assessment feed into this?

We definitely meet the resident requirement, we both are permanentes, have documentation for ownership, Mexican bank account, Mexican DLs and registered car.

Been here going on 15 years.

 

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You're asking for logic Mainecoons and we live in Mexico. ;) That has been my experience, having sold two houses... one in the state of Guanajuato and the other in the state of Nayarit. You also are well aware that Jalisco makes its own rules on many things (especially with cars and licensing).

Anyway, the point is that newbies can learn from this forum as well and should look into these things and not assume that anything is the same as NOB... or even from one state to another in Mexico.

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Believe it or not, after living here for almost 15 years Ferret, we know all of that.  We sold another house we owned in Riberas and the capital gain was based on the difference between purchase and selling, less adjustments for major improvements/expansions and inflation over time.

I checked with our Notario and he confirmed this is how it is done and property tax assessment is irrelevant.

I'm coming to the conclusion the problem here is a gross area in the size of the improvements under roof which we did notice until they double the tax in one year.  It also appears the total property size is off by about 20 percent.

We'll be looking into having the place formally measured as Ibarra suggested and gave me a reference for.  I'll come back and post the results when I have them.

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6 hours ago, ibarra said:

A dispute is really needed.  Why pay higher taxes when they probably won't have to pay capital gains as I would imagine they fall in this category:

 

Primary Residence Tax Exemption

There is a provision for foreign residents of Mexico to be excluded from capital gains tax for their primary residence.  The requirements to establish residence in Mexico can include:

Status of Residente Permanente

Longevity owning and residing at your property – including proof by having documents in your name (ie CFE Bills, Telmex Bills)

Mexican Bank Accounts

Mexican Drivers License and Mexican Registered Vehicles

Yes and you might check with your Notario if thinking of selling. When we sold our property in PV in 2018 it was required that each of us have a bill in our own name since we were both listed on the deed. We had to go to CFE and have the account transferred into my wife's name and then wait the 60 days to receive that bill before proceeding with the closing, in order to qualify for capital gains favorable treatment. Maybe just in PV but better safe than sorry.

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7 hours ago, Mainecoons said:

Believe it or not, after living here for almost 15 years Ferret, we know all of that.  We sold another house we owned in Riberas and the capital gain was based on the difference between purchase and selling, less adjustments for major improvements/expansions and inflation over time.

I checked with our Notario and he confirmed this is how it is done and property tax assessment is irrelevant.

I'm coming to the conclusion the problem here is a gross area in the size of the improvements under roof which we did notice until they double the tax in one year.  It also appears the total property size is off by about 20 percent.

We'll be looking into having the place formally measured as Ibarra suggested and gave me a reference for.  I'll come back and post the results when I have them.

Be careful what you wish for. If you have made any significant improvements inside or outside without getting any prior "permission" you could be in for an increase over that new assessment!

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13 hours ago, lakeside7 said:

Be careful what you wish for. If you have made any significant improvements inside or outside without getting any prior "permission" you could be in for an increase over that new assessment!

Nope, the house is totally original with just maintenance.  First place I ever owned I didn't have to do a lot of upgrading on.  Even still using the same original baths with carefully maintained original tile and the same Price Pfister faucets for which parts are still readily available NOB.  They don't make stuff like that anymore.  

 

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This is the most up-to-date info that I could find on taxation when closing a real estate deal and it is dated Dec. 1st, 2022.

The Costs and Taxes of Selling Property in Mexico (mexperience.com)

It does NOT include THE FOLLOWING QUOTED statement which is included in the two other publications linked further down...

Quote

Historically, a property’s appraised value listed on the deed is far below its actual resale value, in an effort to save on property taxes and transfer taxes at the time of purchase. This low listed value benefits the seller allowing them to avoid paying capital gains on the sale. The problem comes when selling the property, as the value is listed low, causing a large gap between the deed price and the sale price, resulting in a higher Capital Gains tax. It’s recommended to ensure that the value declared on the deed is equal to the transaction price.

The above quote found here... CLOSING AND TAXES COSTS OF SELLING PROPERTY IN MEXICO - (silmexicooaxaca.com) and here... Expats and Capital Gains Tax on Mexican Real Estate - MexLaw Real Estate Law 

For MOST people selling their permanent full time residence, the above is not that important and will not come into play at all. You should still be aware of it just in case you have to sell in the less than three year time frame that is afforded most Permanentes to avoid capital gains on their permanent full time residence.

 

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  • 2 weeks later...

In the GDL Reporter:

https://m.facebook.com/story.php?story_fbid=pfbid022tjsGiKFgeoGEBHBNpMFWg8gACgM3zMSMUJdpVtKhJFPnDstbyY96EZY8iVXjgbel&id=100063694621430

Why this guy has a really big smile on his face:

Translated:  We can wring a lot more money out of Ajijic who already pays the majority of the property tax, but we still aren't really going to clean up the trashy streets or fix the potholes.  🤣

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