BajaNomad

Rosarito Beach - The Tax man cometh...

Woooosh - 3-21-2010 at 03:34 PM

http://rosaritoenlanoticia.blogspot.com/2010/03/proyecta-adm...

I found this interesting:

"From 2009 we proposed and we did in 2010, implementing a single rate of 1.59 per thousand for the construction and properties with vacant lots"

80% of the 25,000 vacant lots in Rosarito are owned by Americans and "others" whoever they are...

[Edited on 3-21-2010 by Woooosh]

Bajahowodd - 3-21-2010 at 03:39 PM

Those numbers are an eye opener. It would be nice if the local authorities had the ability and the gumption to seize the lots for which no taxes were paid. After all, the likelihood is that most of the lots owned by foreigners were purchased using ephemeral equity. Don't kn ow if you or I will be around when the majority of those folks have the jack to build.

Woooosh - 3-21-2010 at 04:09 PM

Quote:
Originally posted by Bajahowodd
Those numbers are an eye opener. It would be nice if the local authorities had the ability and the gumption to seize the lots for which no taxes were paid. After all, the likelihood is that most of the lots owned by foreigners were purchased using ephemeral equity. Don't kn ow if you or I will be around when the majority of those folks have the jack to build.


Had lunch with my Rosarito real estate guy yesterday. People are bailing out at a 50% loss- if they are lucky enough to find a buyer at all.

There is a system in Mexico which allows for people to scoop-up vacant land when the taxes have not been paid- by paying the back taxes and transferring the title. Not sure how many years it has to be in arrears. Not sure if it being held in a bank trust changes how that works. I would presume most of these vacant properties are in a bank trust because of the coastal ownership restrictions on Americans.

[Edited on 3-21-2010 by Woooosh]

Russ - 3-21-2010 at 06:13 PM

Mulege is so desperate to get their taxes they have some how gotten Immigration and the banks to require an up to date tax receipt to do any business. My taxes since '08 more than doubled on the vacant piece I have. They are suppose to have some revised numbers for me next week. I think they need some money though because their offices don't have a roof.

Woooosh - 3-21-2010 at 06:27 PM

Quote:
Originally posted by Russ
Mulege is so desperate to get their taxes they have some how gotten Immigration and the banks to require an up to date tax receipt to do any business. My taxes since '08 more than doubled on the vacant piece I have. They are suppose to have some revised numbers for me next week. I think they need some money though because their offices don't have a roof.

I should think the financial needs is the same in every tourist and expat-dependent location. They need the money to replace the lost tourist sales and hotel taxes. But biting the only hand that still feeds you is an interesting approach.

How does Rosarito's new (2009) 1.59% per mil sales tax compare to others? (California is locked at 1% as a comparison) What is the rate for Mexican owned properties?

An aside: I was told once the reason many Mexican houses leave the roof rebar rods untrimmed is so the building is not considered complete and therefor not taxable as such. true?

CaboRon - 3-21-2010 at 07:03 PM

Quote:
Originally posted by Woooosh
Quote:
Originally posted by Russ
Mulege is so desperate to get their taxes they have some how gotten Immigration and the banks to require an up to date tax receipt to do any business. My taxes since '08 more than doubled on the vacant piece I have. They are suppose to have some revised numbers for me next week. I think they need some money though because their offices don't have a roof.

I should think the financial needs is the same in every tourist and expat-dependent location. They need the money to replace the lost tourist sales and hotel taxes. But biting the only hand that still feeds you is an interesting approach.

How does Rosarito's new (2009) 1.59% per mil sales tax compare to others? (California is locked at 1% as a comparison) What is the rate for Mexican owned properties?

An aside: I was told once the reason many Mexican houses leave the roof rebar rods untrimmed is so the building is not considered complete and therefor not taxable as such. true?


Not True .... it is an old wives tale :lol:

Old wives tale?

tehag - 3-21-2010 at 10:26 PM

Do you have a source? That tale has been around for a very long time and is repeated by people who should know.

Gaucho - 3-22-2010 at 11:12 AM

What is the rate for Mexican owned properties?

They go by where the property is located, not who holds title. We hold title in an escritura but I would bet 90% of our little enclave holds title in a fideicomiso. When the tax man commeth to raise our taxes we'll be paying more just like all the others.

Woooosh - 3-22-2010 at 11:19 AM

Quote:
Originally posted by Gaucho
What is the rate for Mexican owned properties?

They go by where the property is located, not who holds title. We hold title in an escritura but I would bet 90% of our little enclave holds title in a fideicomiso. When the tax man commeth to raise our taxes we'll be paying more just like all the others.


I read the article to say they were specifically taxing American-owned properties differently at the higher rate. At least in Rosarito anyway.

Dave - 3-22-2010 at 11:48 AM

Quote:
Originally posted by Woooosh
I read the article to say they were specifically taxing American-owned properties differently at the higher rate. At least in Rosarito anyway.


Doubt that. What I do believe is they are valuing the properties higher. Coupled with the fact that most gringos aren't aware that there are discounts for early payments makes for higher effective rates.

Gaucho - 3-22-2010 at 11:49 AM

Quote:
Originally posted by Woooosh
Quote:
Originally posted by Gaucho
What is the rate for Mexican owned properties?

They go by where the property is located, not who holds title. We hold title in an escritura but I would bet 90% of our little enclave holds title in a fideicomiso. When the tax man commeth to raise our taxes we'll be paying more just like all the others.


I read the article to say they were specifically taxing American-owned properties differently at the higher rate. At least in Rosarito anyway.


I spoke to my rep at the Settlement Co. in San Jose and she said alot of the American owned communities are being affected by this up tick in rates but she insists it's based purely on geography and not demographics. I wonder how this is affecting Mr. Torres (if at all)?

arrowhead - 3-22-2010 at 11:50 AM

I don't think they are bailing because of the property taxes. 1.59 per 1,000 works out to a tax rate of 0.159% of assessed value. California's basic property tax rate is 1.2% of assessed value...7.5 times higher. Of, course the services you get for that 1.2% are probably more than 7.5 times what you get in Mexico.

Woooosh - 3-22-2010 at 12:04 PM

Quote:
Originally posted by arrowhead
I don't think they are bailing because of the property taxes. 1.59 per 1,000 works out to a tax rate of 0.159% of assessed value. California's basic property tax rate is 1.2% of assessed value...7.5 times higher. Of, course the services you get for that 1.2% are probably more than 7.5 times what you get in Mexico.


Question: The article was talking dollars I thought. So isn't 1.59% still 1.59%? (Before any early payment discounts which are indeed substantial)

k-rico - 3-22-2010 at 12:13 PM

For the bill I paid in TJ in January 2010,

(impuesto predial / valor fiscal * 100) = 0.291

January 2009 it was 0.270

the valor fiscal is the same for both years so the rate increased 0.021 or 7.8% from 2009 to 2010.

Think I got that right.



[Edited on 3-22-2010 by k-rico]