I'm sorry, but I'm unfamiliar with this concept. Are you saying that all the citizens in some municipalities pay municipal taxes and then might get a full refund on those taxes? Is this because the municipality doesn't need the revenue to pay for services and municipal workers? If so, why would the municipality levy the taxes in the first place? I'm confused.
Hi, sorry if i didn't make this clear. Let's see if this time I can make a better job. So, first things first: this is not about municipal taxes. It's about the personal income tax (IRS) that every citizen must pay to the central state. the state then devolves 5% of that tax to the municipalities (i guess it's a main way of the state financing local government, which is a constitutional precept). what's happening here is that, since 2008, some municipalities can give back a total or partial part of those 5% to the taxpayers that live within their confines (i.e., if you live in Lisbon, which is one of the municipalities that will pay a full refund, you give those 5% from your IRS back). This happens because: 1. it's an election year and mayors want to please voters; 2. they don't need the central state's revenue to pay for workers and service, as you mentioned, because, i suspect, they've also profited from rising property rises and, indeed, municipal taxes, which they levy directly; 3. and they want to attract people to live in their municipality. I hope this helps to clarify your questions!
*correction: (i.e., if you live in Lisbon, one of the municipalities that will give its inhabitants a full refund, you will get those 5% from your IRS back).
I'm sorry, but I'm unfamiliar with this concept. Are you saying that all the citizens in some municipalities pay municipal taxes and then might get a full refund on those taxes? Is this because the municipality doesn't need the revenue to pay for services and municipal workers? If so, why would the municipality levy the taxes in the first place? I'm confused.
Hi, sorry if i didn't make this clear. Let's see if this time I can make a better job. So, first things first: this is not about municipal taxes. It's about the personal income tax (IRS) that every citizen must pay to the central state. the state then devolves 5% of that tax to the municipalities (i guess it's a main way of the state financing local government, which is a constitutional precept). what's happening here is that, since 2008, some municipalities can give back a total or partial part of those 5% to the taxpayers that live within their confines (i.e., if you live in Lisbon, which is one of the municipalities that will pay a full refund, you give those 5% from your IRS back). This happens because: 1. it's an election year and mayors want to please voters; 2. they don't need the central state's revenue to pay for workers and service, as you mentioned, because, i suspect, they've also profited from rising property rises and, indeed, municipal taxes, which they levy directly; 3. and they want to attract people to live in their municipality. I hope this helps to clarify your questions!
*correction: (i.e., if you live in Lisbon, one of the municipalities that will give its inhabitants a full refund, you will get those 5% from your IRS back).
No need to apologize, this is complicated information in any language let alone translated. Obrigado!