No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchiveLawmakers approve farmland tax reform in second vote

Lawmakers approve farmland tax reform in second vote

After months of negotiations between agricultural sector leaders, municipal officials and lawmakers from different parties, bill 18,070 passed a second and final debate in the Legislative Assembly on Thursday afternoon.

On July 31, more than 15,000 producers from across the country marched on the Costa Rican capital to pressure lawmakers to approve the bill, which initially proposed an 80 percent decrease in property taxes for farmers.

Small and medium-sized producers, who make up 90 percent of the sector, said a high tax rate on farmland was making it difficult to get by. As land value increased across the country, due to urban and tourist development, tax rates also increased, including on farmland.

On Aug. 20, legislators backed the farmers and approved in a first round of voting a bill to lower taxes on land used for agriculture, excluding big agro-businesses. The second and final vote was pushed through Congress on Thursday.

The new tax rate will be based on the historical value of farms, eliminating higher rates set by the Finance Ministry in 2008. Municipalities could then add a 20 percent “fee” to the final appraisal.

“We are very satisfied with the approval of this bill, because we demanded tax justice for a long time,” Guido Vargas, president of UPA Nacional, an organization of small- and medium-sized producers, said on Friday. “We are still waiting for the president to sign it into law.”

Responding to concerns that a tax exemption for farmers also would benefit large agricultural producers – including multinational companies – lawmakers called for a new standard that measures land use and production, among others parameters, to determine a producer’s size. 

The Agriculture and Livestock Ministry (MAG) will be tasked with creating the standard via a census that could take up to four years to complete.

Agriculture and Livestock Minister Gloria Abraham said on Thursday afternoon that she was pleased with the final approval of the bill and looks forward to the census, which her office had been requesting since 2010.

“In a city, both sectors need each other: Producers need municipalities to provide quality services, and municipalities are there to serve the community,” Abraham said.  “Both [sectors] have reached equilibrium.”

President Laura Chinchilla is expected to sign the bill into law in coming weeks.

Trending Now

Costa Rica Drills for Disaster Today While Its Quake Sensors Go Unfunded

Costa Rica evacuates at 10 a.m. today. The alarms are not real, you should go along with whoever asks you to leave the building,...

Costa Rica Targets Luxury Car Tax Evasion After Ferrari Case

A Ferrari declared for a fraction of its real value has become the poster case for a customs loophole that Costa Rica's vehicle importers...

Costa Rica Reports Renewed Increase in COVID-19 Cases

COVID-19 has once again become the most widely circulating respiratory virus detected in Costa Rica, as health officials urge residents to take basic precautions...

João Fonseca Builds Momentum Ahead of Cincinnati Open With Montreal Run

João Fonseca is beginning to find his form at exactly the right time. The 19-year-old Brazilian defeated former world No. 2 Casper Ruud 7-6(6),...

New Coral Species Found Off Costa Rica Gets a Name From Tolkien’s Elvish

A bright yellow coral found on seamounts off Costa Rica was so distinct that scientists created an entirely new family for it, then named it in Tolkien's Elvish.

Latin American Players Make Early Push at Cincinnati Open

Latin American players made an immediate impact as the Cincinnati Open main draw began Thursday, with Argentina’s Mariano Navone and Thiago Agustín Tirante advancing...

Playa Blanca Parking Lot Closes Amid Costa Rica Beach Access Dispute

Those heading to Playa Blanca at Punta Leona will face another change in how they reach one of Costa Rica's most popular Central Pacific...

Gunmen Storm Costa Rica Hospital and Kill Patient in Nicoya

Two masked gunmen forced their way into a public hospital in Guanacaste early Saturday and shot a patient to death as he lay on...

OIJ Seizes Axolotls in Costa Rica Exotic Wildlife Investigation

Costa Rican judicial agents arrested a 32-year-old man in Paso Ancho this week after raiding a home where investigators found several axolotls, turtles and...
Avatar
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel