In order to have greater budgetary amounts, the Union of Mayors of Mexico City (UNACDMX) reported that it seeks to generate a new redistribution of the resources collected by the property tax, that these are assigned in a proportional way to what is generated by each demarcation.
The spokesperson for the UNACDMX, Mauricio Tabe Echartea, explained that they are working to convene a council session and that, from there, adjustments can be made so that the mayors have these revenues.
“The council has the power to determine the city’s income and expenditure policy (…) The council is a constitutional body and the Constitution of Mexico City has the purpose of strengthening the autonomy of the city and also strengthening the autonomy of local governments, that was the purpose of the Constituent Assembly ”, he pointed out.
The mayor of Miguel Hidalgo also assured that this change could be made from a modification of the budget formulas of the entity.
With this, he deepened, it would also be clear the criteria that have been implemented in recent years to redistribute local resources.
“Let’s try to find what the formula is: population, conservation land, marginality. We are not going to find a criterion in the formula of how local resources are distributed ”, he added.
Tabe Echartea stressed that it is important that mayors are already treated as municipalities, since this way they can have greater powers to collect and dispose of local revenues; the Property enters into the collection of the municipal estates.
For example, he stated that according to the Secretariat of Administration and Finance of the capital, in 2020, 17,449 million pesos were collected from the property tax in the city, of this amount, 84% was generated by the mayors of the UNACDMX. However, as a budget amount only 3,534 million were returned to them.
If the mayors in Mexico City had a municipality treatment, they should have received 11,000 million pesos more for this concept.
“In any city in the world, in any city in the country, the Property is a local tax that remains in the mayor’s office or in the government where it was collected, it represents only 7% of all the city’s income, that is, the fair is that the Property is returned to each of the mayors, because that’s the way it happens all over the world “, he stressed.
Derived from this request, the Head of Government of Mexico City, Claudia Sheinbaum, announced that she disagrees with this proposal, since it affects the formulas for the distribution of current resources, as well as that it is not within what the local Constitution indicates.
“This is a retrograde proposal, outside the Constitution of the Republic and outside the Constitution of Mexico City; but, in addition, it affects their own populations (…) It does not go with a vision of equity, equality, reduction of inequalities, ”he explained.
“It is absolutely conservative, to propose that the mayor Álvaro Obregón give its entire budget to Pedregal de San Ángel or Chimalistac because there, Lomas de la Era and all that, there is no collection of Property; or that in Coyoacán everything is concentrated in the center of Coyoacán because there, in Santo Domingo there is a lower payment of Property, “he added.
According to the National Institute for Federalism and Municipal Development (INAFED), mayors, or territorial demarcations, and municipalities are different ways in which a state is politically and administratively organized to exercise its government.
Among the differences is that the territorial demarcation is not recognized as a government order and the municipality itself.
At the same time, the territorial demarcation does not have concurrent powers in the General Laws and the municipality does.
The municipality is made up of councilors, trustees and municipal president and the territorial demarcations are made up of councilors, who represent a neighborhood or district of the mayor’s office and the mayor.
“The municipality receives federal contributions, the territorial demarcation receives its budget from the local legislature. The municipality receives contributions on its real estate property, the territorial demarcation of the public finances of Mexico City, ”the INAFED remarked.
According to the UNACDMX, the Mayor Álvaro Obregón collects 2,267 million pesos for the Property Tax, but 456 million pesos are assigned to him for tax revenues.
Meanwhile, Azcapotzalco also collects 745 million pesos for this local tax, but they are given 71 million, Benito Juárez with 1,837 million and 217 million are returned, Coyoacán with 1,240 million and receives 831 million.
The Cuajimalpa mayor’s office collects 1,673 million pesos and is assigned 630 million, Cuauhtémoc with 2, 299 million and 273 million is given, Magdalena Contreras with 252 million and 662 million is assigned. Miguel Hidalgo with 3, 404 million and receives 98 million, while Tlalpan contributes 997 million and 293 million are returned.
They will deliver an Economic Package
The head of Government reported that this Tuesday, November 30, the 2022 Economic Package of the city will be delivered, where it is proposed that the collection of local taxes is similar to the year 2019.
At the same time, the priority axes are safety, health, mobility and education.
“Education, Health, Public Investment, the Mexico City Metro are being strengthened, and the mayors’ offices are being given a little more than the percentage established in the Constitution and with a distribution similar to that of 2019, where all parties politicians approved it unanimously, ”he said.