Property tax is a mandatory municipal tax for owners and possessors of real estate, a tax that is currently included in the income of the different municipalities of the State of Aguascalientes. The purpose of this tax is to tax land tenure, and its taxable base is determined by the cadastral value assigned by the Cadastral Institute of the State of Aguascalientes. This tax is applicable to properties destined for residential, commercial and even industrial use. However, in many cases, these valuations contain errors or lack solid legal grounds, which opens the possibility of challenging them.
Property Tax Calculation and Possible Irregularities
As a result of certain practices that have been in place for some years now, property tax assessments usually present certain legal flaws, among which the lack of transparency in the valuation methodology and the absence of adequate notification to taxpayers stand out. This generates amounts to be paid that are higher than the fair amounts, and this justifies the possibility of filing a nullity lawsuit to correct these inconsistencies. The case of Aguascalientes is not very different, since sometimes it is possible to find these or other defects that make the determination and/or collection of such tax illegal.
It is important to consider that this lawsuit against the collection of property taxes is applicable not only within the payment periods established by the municipal Finance Departments, which are usually the first three months of each fiscal year, but the nullity lawsuit may, if applicable, be filed after these three months, and even for arrears in the payment of property taxes for previous years.
Property Tax Challenge in Aguascalientes
Individuals and companies may file a nullity action before the Administrative Justice Court of the State of Aguascalientes. This procedure allows requesting the review of the determination of the tax and, in case it is appropriate, it is determined that the tax is illegal, and the individual is not obligated to pay it, or, in case it has already been paid, the Ministry of Finance must return the amount paid plus the amount corresponding to the update of the amount paid until the month in which it is reimbursed.
The challenge process involves analyzing the cadastral value and the determination of the tax, filing a claim within 15 business days after the payment of the tax, followed by the response of the defendant authority. Then, the Administrative Justice Tribunal of the State of Aguascalientes evaluates the evidence and arguments in a hearing, to finally issue a ruling that, if favorable, orders the refund of the payment. In total, the process for the issuance of a judgment usually takes between 8 and 10 months; however, this period may be longer depending on the workload of the Court of Justice hearing the case.
Our Services
Vega, Guerrero & Asociados has a team with more than 10 years of experience in tax and administrative litigation, having consistently obtained favorable rulings against the collection of property taxes in several states of the Republic. If you or your company has been affected by an excessive property tax collection, contact us to analyze your case and determine the viability of a property tax lawsuit. Our team is ready to advise you before this tax and any other act of the fiscal or administrative authority.
