First house IMU: the Commune decides on an increase

 Varese will find the money to balance the State Solidarity Fund, by increasing the first house IMU from 0.45% to 0.58%.  A decision that only technically will not affect the taxpayers wallet, because the State should pay out-of-pocket, allowing, in this way, Palazzo Estense to break-even.

The decision to increase the tax on the first house will be made tomorrow evening, on Thursday, from the vote in balance commission, that later will be voted by the city council.

But why this increase, which results – if everything goes well – a clearing entry between the municipal and the Rome administration?

It is the fault of the council solidarity fund : a mechanism of public finances distribution between the State and the local authorities, through the creation of a council fund ( of solidarity) supported by a percentage of the council tax of the communes authority.

The State administration has asked Varese nearly 3 million more that the Commune has to find and for this reason they have decided to work on the house taxation to cover these sums.

The main problem is that  the Municipal tax on the second property has been abolished by the government: But this money, result of the rate rise, will be given by the State, because it is the duty of the Central Government to cover the lack of income by the tax.

The opposition do not like this issue. For the PD, according to the city councilman and member of the balance sheet committee, Luca Conte: "we are and we have always been firmly against every increase of the first house taxes and, therefore, on what they are proposing, too. This issue, except for the wished but not sure intervention of the Government about the Municipal tax on the second property that has been discussed during those days, will weigh on the people living in Varese  for 3 million Euros. To raise the tax hoping that the Government would abolish the second rate appears to be taking a risk with the citizens’ money. It also risks to be inefficient if all the municipalities would do the same. With the cuts of the State to the Solidarity fund, is the answer, quite easy end not very brave, of this administration to hang on to the tax incentive?"

On the discussion point in the balance sheet commission tomorrow has participated  the Free Movement spokesperson too. In a note Alessio Nicoletti explained: " the Government has made an effort  to return to the municipality the missing payment of the first house Municipal property tax. This is the first reason why Fontana has decided to bring in the city council the measure with which they intend to raise  the Municipal property tax on the first house from 0.45 to 0.58. A ‘blunder’, let me pass the term, that could guarantee a higher income of  approximately three millions of Euros, that is the exact amount that the municipality of Varese needs to close the balance sheet without weighing on the citizens of Varese because it would be the State to pay. A blunder that some Italian municipalities, not only Varese, are carrying on."