Bill 292 of 2023, recently approved in its first debate by the Third Committee of the Colombian House of Representatives, aims to establish new limits on increases in the Unified Property Tax resulting from changes in the tax rate or updates to property valuation. The goal is to address evident legal ambiguities and contradictions in current regulations, implement the principle of proportionality, and strengthen territorial finances.

The new limits on the tax rate proposed vary from 50% to 200% of the tax paid in the previous year, depending on property valuation and the economic use of the property or land. Nevertheless, each municipality or district may establish lower limits based on their specific economic circumstances.

These proposed limits will not apply to properties newly added to the cadastral base, unbuilt urbanizable lots, urban unbuilt lots, and rural properties with subdivision permits that are undeveloped and without agricultural use. Likewise, Bogotá and departmental capital cities that adopt the special regime of the Capital District, in principle, will not be subject to these limits either.

Author: Aura Salamanca