All procedures that have not acquired firmness, as a consequence of the transfer of a property, will be affected by this judgment, even those in which there is capital gain.
The Highest Court has annulled the municipal capital gains tax collected by the municipalities. The Constitutional Court considers that the calculation of the tax is unconstitutional since it understands that the objective calculation system does not correspond to reality, affecting the principle of economic capacity contained in article 31 of the Spanish Constitution.
This tax is currently an important source of financing for city councils throughout the country.
The High Court thus responds to a question of unconstitutionality raised by the Contentious-Administrative Chamber of the Superior Court of Justice of Andalusia on articles 107.1, 107.2 a) and 107.4 of Royal Legislative Decree 2/2004, which approved the consolidated text of the Regulatory Law of Local Treasuries.
The judgment considers that these articles are unconstitutional and void because it establishes an objective method of determining the tax base of the Tax on the Increase in the Value of Urban Land, which determines that there has always been an increase in the value of the land during the period. of the tax, regardless of whether there has been that increase and the actual amount of that increase.
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