The tax that must be paid when there is an increase in the value of one's property due to the development of a public work is called a contribution.
Contribution is the action and effect of contributing (paying a tax , voluntarily contributing an amount for a certain purpose, helping others). The term has its origin in the Latin word contributĭo .
A contribution, therefore, can be a tribute that a taxpayer must pay for obtaining a benefit or for the increase in the value of their assets from the completion of public works. For example: "Sir, we have detected that you are not up to date with contributions" , "Last month I had to pay a contribution of 200 pesos for the subway works" , "The candidate promised a reduction in contributions" .
Types of contribution
As the State benefits certain citizens with each public work (and not the entire population), the administration establishes contributions for the direct beneficiaries, who must finance, either totally or partially, the works.
There are different types of contribution. The direct contribution (which weighs on people or goods), the indirect contribution (which taxes specific acts of production, consumption or commerce), the territorial tax (on goods of a rural or urban nature) and the war contribution (imposed by the armies to the populations they occupy) are some of them.
A contribution can be a voluntary contribution of money.
Real Estate Tax in Spain
In the case of Spain, it is common to use the term contribution to refer to the so-called Real Estate Tax (IBI). That is, it is the amount that every owner of a piece of land, whether rural or urban, must pay annually for it to the corresponding town hall of the municipal area where it is located.
To establish the amount that must be paid at the beginning of the year, factors such as the taxpayer, the type of tax , the tax base or the tax rate are taken into account. However, it must be taken into account that there are a series of exemptions from payment of the contribution receipt:
• Real estate that belongs to the Catholic Church.
• Land routes that are free and in the public domain.
• Assets belonging to entities such as the Red Cross.
• Assets that are property of the State, the City Councils or the Autonomous Communities as well as the consulates of foreign countries, those that are occupied by railway tracks or those that are classified as historic and of Cultural Interest.
Special contribution and voluntary contribution
We must not forget other uses that are also given to the term that concerns us now. Specifically, among the most interesting in this regard, it should be noted that we speak of a special contribution to refer to the mandatory payment that all those people who, for the implementation of public services or the performance of a series of public works, are benefited.
At a general level, a contribution is a contribution, whether to a person, a campaign , an organization , etc.: "The bishop asked people to make an effort to contribute in solidarity with those most in need" , "My contribution to this company It has been very big: I do not deserve to be treated this way .