Mexico’s low property taxes could soon be increasing
Property owners in Mexico enjoy very low property taxes but that could soon change.
José Antonio Meade said property taxes achieve two important objectives: as a revenue source for municipal governments and as a tool for urban development.
He said the tax generates the equivalent of just 0.2% of Mexico’s Gross Domestic Product while in Latin America as a whole it represents 1.7%.
For member countries of the Organization for Economic Cooperation and Development the percentage rises to 2.2% and in the United States it’s 3.2%.
Ideally, he said, local governments could finance their requirements with their own income.