JUAN CARLOS I REY OF SPAIN

To all who present it and understand it.

Sabed: That the General Courts have approved and I come to sanction the following Law.

EXPLANATORY STATEMENT

I

The promulgation of Law 39/1988 of 28 December, the Regulatory of Local Government, was, in the words of his own explanatory statement, the incorporation into the positive right of a legislative reform, that of the Finance of local entities, whose need was, at the time, unquestioned and unanimously admitted. The publication of the aforementioned law basically allowed the long period of transition in which the local financial activity has been unravelled since, during the first half of the 19th century, the Local Finance Spain finally lost its patrimonialist character by acquiring an eminently fiscal character, until Law 7/1985, of April 2, Regulatory of the Bases of the Local Regime, which, although it embodied the model provided for in the Constitution to design the post-constitutional system of financing of local authorities, could not regulate its financial activity rather than some general aspects.

In the context of a global structure of the resources of local farms, and with the force that the application of its precepts provided or its consideration as basic norms dictated under the protection of article 149.1.18.a the Constitution, or its treatment of rules concerning the exclusive competence of the State, Law 39/1988 had an especially clear objective from the material point of view, which was the effective realization of the principles of autonomy and sufficiency financial enshrined in the Spanish Magna Carta.

Of course, if there is one aspect that in this framework had particular relevance, it was the rationalization of the local tax system, with the creation of three big tax figures: the Real Estate Tax, the Tax on Economic Activities and the Tax on Mechanical Traction Vehicles, and the correlative erasure of a very higher number of taxes which had an impact on the same taxable amount as new ones, such as Rustic Territorial Contributions and Livestock and Urban, the Municipal Tax on Solares, the Tax Licenses Commercial and Industrial and Professional and Artist Activities, Municipal Tax on Radication and Municipal Tax on Vehicle Circulation.

II

In order to analyse the basic lines of the new financing framework for local farms, the "Commission for the Study and Proposal of the European Commission for the Study and Proposal of the European Communities" was established by Resolution of the Secretariat of State of Finance of 11 July 2001. measures for the reform of the financing of local farms ", consisting of representatives of the General Administration of the State, the Local Administration, the Spanish Federation of Municipalities and Provinces and the academic field. The Commission gave its report on 3 July 2002.

Many of its proposals and initiatives have been included in the article of this Law, through which a partial modification of Law 39/1988, of December 28, is carried out, Regulatory of the Local Government, culminating in this way. the reform of the financing of local authorities, initiated in the first stage, with the amendments introduced in Law No 39/1988 by Law 50/1998 of 30 December 1998 on fiscal, administrative and social measures.

In this regard, this Law introduces important changes in the framework of local funding, both from the strictly tax point of view and from the financial perspective.

With regard to the regulation of local taxes, this Law amends the article of Law 39/1988 with respect to all the local taxes regulated in it, that is, the Tax on Real Estate, the Tax on Economic Activities, the Tax on Mechanical Traction Vehicles, the Tax on Constructions, Installations and Works and the Tax on the Increase in the Value of the Land of Urban Nature; likewise, the Law introduces some very specific change in the area of local fees, taking into account the current Regulation of the same in Law 39/1988 is due to Law 25/1998, of July 13, of Amendment of the Legal Regime of State and Local Rates and of reordering of the property of public character, through which it has been adapted that regulation to the criteria set out by the Constitutional Court in Case 185/1995 of 14 December 1995.

One of the fundamental facets of the law that is now approved is a new and complete regulation of the Real Estate Tax, which, however, extends to the strictly tax aspects, thus allowing the regulatory regulation of the cadastral institution of the necessary substance. The appropriate referrals between the precepts of both regulations allow, however, to articulate those common aspects that, like the identity value cadastral-tax base, need to be maintained.

The other two principles that can be highlighted as basic in this Law are, without a doubt, the development and enhancement of municipal autonomy and the special attention paid to the establishment of mechanisms that, both in the sphere of cadastral as in that of municipal taxes, facilitate the management and reduce the formal obligations of the stakeholders.

Especially noteworthy are the modifications introduced by this Law in the regulation of the Tax on Economic Activities, basically aimed at exempting from the payment of said tribute to most of the small and (a) medium-sized businesses, compatible with the objective of the tax to be taken into account, for those who continue to be subject to the payment of the tax, the specific economic circumstances of the obligation to pay.

In addition to the amendments relating to the Tax on Economic Activities, the Law contains several measures that affect the rest of the local taxes regulated in Law 39/1988, both those of mandatory requirement for the Municipalities (Tax on Property and Tax on Mechanical Traction Vehicles) as well as those of potential demand for them (Tax on Construction, Facilities and Works and Tax on the Increase in the Value of Land of Urban Nature).

As a financial instrument which, together with its own taxes, reinforces the materialization of the principle of financial sufficiency of local entities established in Article 142 of the Constitution, it is also the subject of reform the model of participation in state taxes.

While this reform will not take effect until January 1, 2004, it has been included in this legislative text for obvious reasons of legislative economics, in order to prevent the proliferation of reforms and revisions of the regulatory framework. the same material.

The set of tax and financial modifications, which this Law carries out in the articles of Law 39/1988, is essential, on the one hand, to maintain and strengthen the guarantee of the principle of financial sufficiency of the local authorities proclaimed in the Constitution and, on the other hand, increase the municipal autonomy in the field of local taxes, so that the Councils have greater capacity and margin of decision, within the legally defined limits, in matters such as the application of the tax rates or the tax incentives.

III

The Law is structured in a single Title, two chapters, forty-four articles, twelve additional provisions, twelve transitional, one repeal and two endings.

In the Single Title, the amendments made in Law 39/1988 introduce this Law in the field of taxation, relating, as has already been said, to all local taxes regulated at that and local taxes, as well as to the participation in State taxes.

With regard to the regulation of the Real Estate Tax, and still maintaining the general scheme of the previous regulations, the new developments, which basically affect the configuration of the property, are important. (a) the taxable amount and the non-subjection assumptions; the regulation of the exemptions; the taxable persons, the taxable and liquidable bases; the determination of the tax rate and the establishment of subsidies on the tax; and, finally, the formal obligations.

In relation to the taxable fact, its determination has been technically improved, making a block referral to the concept of real estate for cadastral purposes; particular relevance has, in this respect, the creation of a new category of buildings, the property of special characteristics. Also explicitly regulated are the assumptions of non-subjection, completing as provided for in Article 29 of Law 230/1963, of December 28, General Tax, the concrete determination of the taxable fact, and including among the same assumptions which were previously collected as exemptions. As for these, their configuration has been systematized, they have been distinguished according to whether or not they have been rogated, some assumptions have been restrictively profiled and granted to the Ayamese autonomy with respect to the establishment and concession of the the technical exemption of certain goods on the basis of efficiency and economic criteria in municipal revenue management.

In relation to the taxable person, his configuration has been significantly improved, the Law gives him the power to pass on the tax burden of the tax in accordance with the rules of common law. the principle of tax neutrality, the system is improved by the establishment of the mandatory impact on the Ayunes of the entire liquid tax quota on those who do not meet the condition of taxable persons, make use by way of consideration of their demanial or heritage assets.

In the area of guarantees, the Law expressly limits the liability for the condition of the real estate to the payment of the tax. It also strengthens the principle of legal certainty that the traffic will preside over Under the Law, the obligation of Notaries to report to the comparables, whether they are the same or the granting, of the debts arising from the tax on the Real Estate Tax to which the property may be affected the purpose of the act or business concerned. A special rule on joint and several liability is also established for entities without legal personality governed by Article 33 of Law 230/1963 of 28 December, General Tax.

The tax base continues to be the cadastral value, while the regulation of its determination, notification and challenge has been shifted, consequently, to which it is contained in the regulatory norms of the Real Estate Catstar.

As regards the reduction of the tax base for the determination of the liquidable base, the system established at the time in Law 53/1997 of 27 November, which is partially amended by Law 39/1988, is perfected. December 28, Regulatory of Local Government, and a reduction in the tax base of the Real Estate Tax is established, and certain aspects are collected, the need for which has been demanded, such as the simplification of cases. in the determination of the base value or the compatibility of the application of the reduction with the updating of cadastral values by coefficients established in the General Budget Laws of the State for each economic year. Its scope, as opposed to the above rules, extends to both urban and rustic buildings, although the goods classified as having special characteristics are excluded from it.

As for the quota, the main innovations affect the regulation of the tax rates and the establishment of new bonuses, all in the context of providing the Ayculos as the starting organs. and managers of the tax, a wide range of tools to combine its potential collection with the possibilities that the tribute offers as an instrument in the service of the municipal tax policy.

With regard to the former, specific rates of charge are established for the real estate of special characteristics, the assumptions of increase of rates are simplified according to the characteristics of the municipality and introduces the possibility of establishing differentiated rates according to the uses that the regulatory norms of the Real Estate Register for the constructions in the urban real estate, the groups of properties of special characteristics and the cadastral value. It also highlights the possibility of applying a surcharge to residential buildings that are unoccupied to facilitate the access of all citizens to the enjoyment of decent and adequate housing.

The regime of the bonuses is undoubtedly one of the aspects where the determined impulse that the Law gives to the principle of municipal autonomy is concretely concrete; in this sense it is referred in general to the municipal ordinances the specification of the main aspects of their regulation.

The introduction of new scenarios for the application of these benefits, such as those for large family holders or groups of special characteristics, should be highlighted.

Finally, in the field of management, the amendments that the Law incorporates are aimed, on the one hand, at reinforcing the principle of collaboration that must preside over the relations between public administrations in order to reduce indirect costs of taxation and to facilitate the management of the tax for the benefit of taxpayers, and, for this purpose, to simplify the management of the tax and to facilitate its understanding.

The first group of measures is the establishment of the municipal communication procedure, which exempts the taxable person from the obligation to declare when the constituent elements of the taxable event are in the a corresponding license or municipal authorization and be referred by the local entity to the General Directorate of the Catastro in the terms and conditions expressed in the Law. It also belongs to this group of measures the procedure for the exchange of information between the aforementioned Administrations, which allows to speed up the levy of the tax when the non-match between the cadastral holder and the taxable person is known by the organ of the tribute at the collection stage.

Within the second group of measures, it is worth mentioning the reference to the regulatory norms of the Catastro Inmobiliario in the field of declarations, the differentiation between the cadastral and collection list concepts and the faculty of In order to group together in a single charging document all the fees to be met by the same taxable person for holding the ownership of the rustic real estate referred to in this Law.

IV

As for the Economic Activities Tax, the main modifications are as follows:

It is exempt from the payment of the tax to all natural persons and, also, to other taxable persons of the same who have had a business figure of less than one million euros.

Tax payments are waived for taxable persons who start their business during the first two tax periods.

The exemption of the autonomous organizations is adapted to Law 6/1997, of April 14, of the Organization and the Functioning of the General Administration of the State.

A new coefficient is created, to be applied on rate quotas, determined according to the taxable person's business figure.

The current municipal coefficient and the current situation index are unified, in a single situation coefficient.

It is enabled for the Aycalcias to establish a bonus for job creation and a bonus in favor of the companies with losses or with benefits lower than the figure that determines the tax ordinance.

It is enabled to provide a bonus for the use or production of renewable energies, the realization of industrial activities outside the populated nuclei and the establishment of plans that encourage efficient and less polluting transport of workers.

The element "number of workers" is deleted as a determining factor for part of the tax quota.

A specific item is created for mobile operators.

The tax quota is mined on the basis of the areas that the taxable persons spend on sociocultural services and on childcare services.

In relation to the Tax on Mechanical Traction Vehicles, the following new features are highlighted:

The scope of the exemption of disabled vehicles is improved and extended, taking into account the recommendations of the Ombudsman, without linking the exemption or the tax power of the vehicle or its specific adaptation. for driving by the disabled person.

The differentiation of maximum coefficient of increase of quotas according to the population of the municipality is abolished, with the fixing of a single maximum coefficient for all the municipalities.

Increase the maximum allowable bonus cap to the Ayculos for low-polluting vehicles.

With regard to the Building, Facilities and Works Tax, the following news can be noted:

The determination of the taxable person of the tax is clarified, in line with the case law of the Supreme Court.

The tax base of the tax is clarified, according to the criteria of the Supreme Court.

The differentiation of maximum rates of taxation is abolished according to the population of the municipality, with the establishment of a single maximum rate for all municipalities.

It is enabled for the Councils to establish bonuses in favour of buildings, installations or works that contribute to or refer to the use of solar energy, to the plans for the promotion of private investment in infrastructure, housing for official protection and the conditions of access and habitability of the disabled.

Regarding the Tax on the Increase in the Value of Urban Nature, the following measures should be emphasized:

They become assumptions of non-subjection to the current exemption assumptions applicable to the contributions of the spouses to the spousal society and to the transmissions between spouses or in favour of the children for a declaration of invalidity, separation or divorce, to avoid situations of fraud.

The exemption of the autonomous organizations is adapted to Law 6/1997, of April 14, of the Organization and the Functioning of the General Administration of the State.

The precept of determining the tax base is simplified and systematized.

The current differences in the annual percentages of determination of the increase in value according to the population of each municipality are suppressed, with a single percentage being fixed for each generation period.

The different maximum rates of taxation are abolished according to the population of the municipality, with the establishment of a single maximum rate for all municipalities.

Finally, as far as local rates are concerned, the following measures are included:

The assumption of fees for the private use or special use of the local public domain in the case of installation of advertisements not located on land of local public domain, but only visible from the same.

The current "1.5 per 100 rate" (of gross billing income) is extended to entities that employ foreign networks to make their supplies, clarifying, expressly, that the services of non-profit are not included in this scheme. mobile telephony.

V

Since the entry into force of the Local Government Law Regulatory Law, according to its initial wording, models of participation of local entities have been defined in state taxes on horizons. temporary five-year periods, which had as their priority objectives to contribute to the financial sufficiency of those and to provide automatism with the fixing of the total amounts of that participation, applying previously objective criteria defined.

In this reform, also obeying these objectives, financing mechanisms with a vocation to remain in time, with the establishment of criteria similar to those already defined for the Communities, are proposed. Autonomous Common Regime and Cities with Autonomy Statute.

In addition, the achievement of the objective of sufficiency is deepened, with recognition of the increasingly palmarian reality of the character of the pole of attraction that the great cities have been showing. This situation leads to greater financial needs arising from the strong pressure of demand for basic and compulsory public services and greater economic activity, which allows for a higher return on state taxes than The different manifestations of the same are taxed.

For this reason, a dual structure of financing, of an analytical-synthetic nature, is configured in favor of the large municipalities and the capitals of the province of common regime. By way of analysis, a proportion of the income earned by the State's Treasury in the tax figures with the highest potential to be collected, partially transferred to the Autonomous Communities of the Member States, is channelled towards these entities. Common rules and cities with Autonomy Statute, as provided for in Law 21/2001 of 27 December 2001 regulating the tax and administrative measures of their new system of financing.

Of a synthetic nature, since large municipalities are set up to participate in state taxes that will evolve at the same rate as the state's tax revenues, with the determination of this rate in the municipalities. terms for the Autonomous Communities.

This participation component is configured as complementary to the resources that the municipalities obtain for the cession of the revenues collected in the state taxes cited.

On the other hand, for the rest of the municipalities a model of participation is established in taxes of the State defined by variables. The reform also meets the criteria that this model includes for determining the overall funding amount and for its distribution among the entities concerned.

With regard to the first set of criteria, the applicable rate of evolution is amended to fix the overall financing for years other than the base year, which will be determined by the rate of growth of the the tax revenues of the State, in the terms mentioned above.

Regarding the distribution criteria, the relative weights of some variables, the weighting coefficients applicable to the right population and the definition of the inverse of the tax capacity are modified, with erasure, likewise, of the number of school units as a distribution criterion.

As regards the participation in taxes of the State of the Provinces, Councils and Island Councils, Uniprovincial Autonomous Communities, of common regime, and Cities with Statute of Autonomy, is also configured a dual financing model similar to that defined for the large municipalities and provincial capitals. Similarly, the allocation that could correspond to each of those entities in the health care fund, which is being collected and developed in the annual State Budget Laws, is defined.

In no case do they give in to the local authorities, in relation to the state taxes in which they collect income, regulations, management, liquidation, collection and inspection, as well as the subject of review of acts which are to be carried out on the management of such taxes, with the sole responsibility of the State for its ownership and exercise.

Finally, the uniqueness of the local authorities would be recognized for the existence of their peculiar economic and fiscal regime derived from their ultraperipheral situation, which manifests, among others, in the lack of certain indirect state taxes such as VAT or the non-application or mitigation of certain special manufacturing taxes. Consequently, since the amount of the transfer of tax revenue is lower in the case of the local authorities in the Canary Islands to which that system applies, and thus the level of State funding of the the same must be the same as that of the correlative local entities of the Peninsula and of the Balearic Islands, the Supplementary Fund of Financing will be adapted to this circumstance.

SINGLE TITLE

Amendments to Law 39/1988, of December 28, Regulatory of Local Haciendas

CHAPTER I

Tax Matters

SECTION 1.a TASAS

Article first. Amendment of Article 9.

Article 9 (1) is amended, which shall be worded as follows:

" 1. Other tax benefits may not be recognised in local taxes which are expressly provided for in the rules of law or as a result of the application of the international treaties.

However, it will also be possible to recognize the tax benefits that local authorities establish in their tax ordinances in the cases expressly provided for by the Law. In particular, and under conditions which may provide for such ordinances, they may provide for a bonus of up to 5 per 100 of the share in favour of taxable persons residing in an institution's periodic maturity debts. financial, anticipate payments or perform actions that involve collaboration in revenue collection. "

Article 2. Amendment of Article 10.

Article 10 is amended, which shall be worded as follows:

" Article 10.

In the levy of local taxes and of the remaining public-law revenues of local authorities, the surcharges and interest on late payment will be required and determined in the same cases, form and amount as in the State taxes.

Where the tax ordinances so provide, no interest will be required to delay the payment deferral or fractionation agreements that would have been requested on a voluntary basis, under the terms and conditions provided for by the an ordinance, provided that they relate to debts of periodic maturity and collective notification and that the total payment of such debts occurs in the same financial year as that of their accrual. '

Article 3. Amendment of Article 20.

Article 20 (3) (s) is amended, which is worded as follows:

"s) Installation of ads occupying local public domain grounds."

Article 4. Amendment of Article 24.

Article 24 (1) is amended, which is worded as follows:

" 1. The amount of the fees provided for the private use or special use of the local public domain shall be determined in accordance with the following rules:

(a) As a general rule, taking as a reference the value that would have on the market the utility derived from such use or use, if the goods concerned were not in the public domain. To this end, the tax systems may, in each case, indicate the specific nature of the private use or the special use in question, the criteria and parameters for defining the market value of the derived utility.

(b) Where public tender procedures are used, the amount of the fee shall be determined by the economic value of the proposal on which the concession, authorisation or award is placed.

(c) In the case of fees for private use or special use made of the land, subsoil or flight of municipal public roads, in favour of companies operating supplies of supplies that result of general interest or affect the generality or an important part of the neighborhood, the amount of those shall consist, in any case and without any exception, in the 1.5 per 100 of the gross receipts from the billing that they obtain annually in each municipal term the companies concerned.

For these purposes, the distribution and marketing companies of those services shall be included among the operators of such services.

Mobile telephony services will not be included in this special rate quantification regime.

This special quantification regime shall apply to the undertakings referred to in this subparagraph (c), whether they are the holders of the corresponding networks through which the supplies are made or not, of such networks, are rights of use, access or interconnection to them.

For the purposes of this paragraph, gross income from billing shall be understood as those that, being imputable to each entity, have been obtained by the entity as a consideration for the services provided in each municipal term.

Not included in gross receipts, for this purpose, are indirect taxes on services rendered, or items or amounts charged on behalf of third parties that do not constitute an income of the entity to the This special rate of quantification of the rate is applied.

Companies that use foreign networks to supply the supplies will deduct from their gross billing revenue the amounts paid to other companies in terms of access or interconnection to their networks. The companies holding such networks shall compute the amounts received for such a concept from their gross billing revenue.

The amount resulting from the application of this special scheme may not be passed on to the users of the supply services referred to in this

.

The rates regulated in this paragraph (c) are compatible with other charges that may be established by the provision of services or the performance of local competition activities, of which the companies referred to in this paragraph they must be taxable persons in accordance with Article 23 (1) (b) of this Law, with the exception of the levy of other fees resulting from the use of private use or special use on the ground, for the payment of this fee; subsoil or flight of municipal public roads. '

SECTION 2.A LOCAL TAXES

Subsection 1.a Tax on Real Estate

Article 5. Amendment of Article 61.

Article 61 is amended, which is worded as follows:

" Article 61.

The Real Estate Tax is a direct, real-character tribute that taxes the value of real estate in the terms set forth in this Law. "

Article 6. Amendment of Rule 62.

Article 62 is amended, which is worded as follows:

" Article 62.

1. It is the taxable fact of the tax that the following rights are imposed on the real and urban real estate and on the properties of special characteristics:

(a) An administrative concession on the buildings themselves or on the public services to which they are affected.

b) A real surface right.

c) A real usufruct right.

d) The property right.

2. The conduct of the taxable event corresponding to those defined in the preceding paragraph by the order in which it is established shall determine the non-attachment of the building to the other arrangements provided for therein.

3. For the purposes of this tax, they will have the consideration of rustic real estate, urban real estate and real estate of special characteristics defined as such in the regulatory norms of the Real Estate.

4. In the event that the same property is located in different municipal terms, it will be understood, for the purposes of this tax, that it belongs to each of them for the area occupied in the respective municipal term.

5. They are not subject to this tax:

(a) Roads, roads, other land routes, and the goods of public and water-maritime public domain, provided that they are public and free of charge.

b) The following real estate owned by the municipalities in which they are located:

Public domain names affected by public use.

The public domain affects a public service managed directly by the City Council, except in the case of real estate transferred to third parties through consideration.

Property assets, except as well as transferred to third parties by way of consideration. "

Item seventh. Amendment of Article 63.

Article 63 is amended, which is worded as follows:

" Article 63.

1. The following properties shall be exempt:

(a) Those that are the property of the State, the Autonomous Communities or local entities that are directly affected by citizen security and educational and prison services, as well as those of the State affected by the National Defense.

b) communal goods and neighborhood mounts in common hand.

c) Those of the Catholic Church, in the terms provided for in the Agreement between the Spanish State and the Holy See on Economic Affairs, of 3 January 1979, and those of non-Catholic confessional associations legally recognised, in the terms set out in the respective cooperation agreements concluded under Article 16 of the Constitution.

d) The Spanish Red Cross.

e) The buildings to which the exemption applies under international conventions in force and, on the condition of reciprocity, those of foreign governments intended for their diplomatic, consular or their representation official bodies.

(f) The area of the populated mountains with specific, regulated, slow-growing species, the main use of which is wood or cork, provided that the density of the tree is the normal or normal of the species in question.

g) Land occupied by railway lines and buildings located on the same grounds, which are dedicated to stations, warehouses or any other service indispensable for the operation of such lines. The establishments of hotels, entertainment, commercial and leisure establishments, houses intended for employees ' housing, offices of management and manufacturing facilities are therefore not exempt.

2. They shall also be exempt on request:

(a) Real estate which is intended for teaching by educational institutions, which are wholly or partly covered by the educational concert scheme, in respect of the area affected by concerted education.

This exemption must be compensated by the competent Administration.

(b) The declared express and individualized monument or historical garden of cultural interest, by means of Royal Decree in the form established by article 9 of Law 16/1985, of 25 June, of the Spanish Historical Heritage, registered in the General Register referred to in Article 12 as members of the Spanish Historical Heritage, as well as those included in the first, second and fifth provisions of that Law.

This exemption will not reach any classes of urban goods located within the delimitation perimeter of the archaeological zones and historical sites and sets, globally integrated in them, but exclusively, to which meet the following conditions:

In archaeological areas, those included as the object of special protection in the instrument of urban planning referred to in article 20 of Law 16/1985, of 25 June, of the Spanish Historical Heritage.

In historical sites or sets, those with an age equal to or greater than fifty years and are included in the catalogue provided for in Royal Decree 2159/1978 of 23 June, approving the Regulation of Planning for the Development and Implementation of the Law on Soil and Urban Planning, as an object of integral protection in the terms provided for in Article 21 of Law 16/1985 of 25 June.

c) The surface of the mountains in which forest repopulations are carried out or regeneration of tree-lined masses subject to management projects or technical plans approved by the forest administration. This exemption shall be for a period of 15 years from the tax period following that in which the application is made.

3. Tax ordinances may regulate an exemption in favour of the goods from which the public health centres of public ownership are the holders, provided that they are directly affected to the fulfilment of the specific purposes of the aforementioned centres. Regulation of the remaining substantive and formal aspects of this exemption will be established in the tax ordinance.

4. The municipalities may, on the basis of efficiency and economic criteria in the management of the levy, provide for the exemption of rural and urban buildings whose liquid quota does not exceed the amount determined by means of an ordinance. (a) to which effect may be taken into consideration, for the former, the pooled quota resulting from the provisions of Article 78 (2) of this Law. "

Article 8. Amendment of Article 64.

Article 64 is amended, which is worded in the following terms.

" Article 64.

1. Taxable persons, natural and legal persons and entities referred to in Article 33 of Law 230/1963 of 28 December, General Tax, are taxable persons who hold the ownership of the right which, in each case, is constitutive of the taxable fact of this tax.

In the case of multiple dealers ' concurrence on a single special feature building, it will be a substitute for the taxpayer to satisfy the largest royalty.

2. The provisions of the preceding paragraph shall apply without prejudice to the right of the taxable person to pass on the tax burden borne in accordance with the rules of common law. The City Councils will have an impact on the entire tax on those who do not meet the condition of their taxable persons, and make use of their demanial or heritage assets.

In addition, the taxpayer's replacement may pass on to the other concessionaires the share of the liquid quota corresponding to them in proportion to the fees to be met by each of them. "

Article ninth. Amendment of Article 65.

Article 65 is amended, which is worded as follows:

" Article 65.

1. In the cases of change, for any reason, in the ownership of the rights that constitute the taxable fact of this tax, the real estate that is the object of those rights will be affected to the payment of the entire tax quota in the Article 41 of Law 230/1963 of 28 December, General Tax. For these purposes, the notaries will request information and warn the companies about the outstanding debts of the Real Estate Tax associated with the real estate that is transmitted.

2. They respond jointly and severally to the share of this tax, and in proportion to their respective shares, the co-members or co-holders of the entities referred to in Article 33 of Law 230/1963 of 28 December, General Tax, if are registered as such in the Real Estate Registry. If they are not registered, the liability will be required in equal parts in any case. "

Article 10. Amendment of Article 66.

Article 66 is amended, which is worded as follows:

" Article 66.

The tax base of this tax will be constituted by the cadastral value of the real estate, which will be determined, notified and will be susceptible of challenge according to the regulations of the Catastro Real estate. "

Item 11th. Amendment of Article 67.

Article 67 is amended, which is worded as follows:

" Article 67.

1. The liquidable basis of this tax shall be the result of the reduction to which the following Articles refer to the tax base.

2. The liquidable basis shall be notified in conjunction with the tax base in the collective valuation procedures. Such notification shall include the statement of reasons for the reduction applied by the indication of the base value corresponding to the building as well as the amounts of such reduction and the liquidable basis of the first year of validity of the new cadastral value. in this tax.

3. Where changes in municipal terms occur and as long as a new value is not approved, the real estate that becomes part of another municipality will have the same regime for the allocation of taxable and liquidable bases. that they have on the source.

4. In the collective valuation procedures, the determination of the liquidable base will be the responsibility of the General Directorate of the Catastro and can be used before the State-Administrative Courts of the State. "

Article twelfth. Amendment of Article 68.

Article 68 is amended, which is worded as follows:

" Article 68.

1. The reduction in the tax base will be applicable to those urban and rural real estate located in some of these two situations:

(a) Infurniture whose cadastral value is increased, as a result of collective valuation procedures of a general nature by virtue of:

1.o The application of the first total value of securities approved after 1 January 1997.

2.The application of successive total values of securities to be approved after the period of reduction set out in Article 69.1 of this Law has elapsed.

(b) Furniture located in municipalities for which a value-setting has been approved which has resulted in the application of the reduction provided for in paragraph (a) above and whose cadastral value is altered, before the end of the reduction period, for any of the following reasons:

1.o General collective valuation procedures.

2.o Partial-character collective valuation procedures.

3.o Simplified collective valuation procedures.

4 Registration procedures by means of declarations, communications, requests, sub-healing of discrepancies and cadastral inspection.

2. This reduction shall be applied ex officio without the need for prior application by the taxable persons of the tax and shall not give rise to the compensation provided for in Article 9 of this Law.

3. The reduction laid down in this Article shall not apply in respect of the increase in the taxable amount of the buildings resulting from the updating of their cadastral values by application of the coefficients laid down in the Budget Laws. State generals.

4. In no case shall this reduction be applicable to real estate classified as having special characteristics. '

Article 13th. Amendment of Article 69.

Article 69 is amended, which is worded as follows:

" Article 69.

1. The reduction shall apply for a period of nine years from the entry into force of the new cadastral values, without prejudice to the provisions of Article 71.

2. The amount of the reduction shall be the result of applying a reduction coefficient, unique to all the buildings concerned in the municipality, to an individual component of the reduction, calculated for each building.

3. The reduction coefficient shall be the value of 0,9 in the first year of application and shall be reduced by 0,1 annually until its disappearance.

4. The individual component of the reduction shall be, in each year, the positive difference between the new cadastral value corresponding to the building in the first year of its validity and its base value. This difference shall be divided by the last reduction coefficient applied when the cases referred to in Article 68 (1) (b) .2.o and (b) .3 are met. '

Article 14. Amendment of Article 70.

Article 70 is amended, which is worded as follows:

" Article 70.

The base value shall be the liquidable basis for the immediate financial year preceding the entry into force of the new cadastral value, except where the following circumstances are present:

(a) For those buildings in which, having produced alterations susceptible to cadastral registration prior to the modification of the planning or to 1 January of the year before the entry into force of the values The value of the value of the basic value shall be the amount of the liquidable basis which, in accordance with the above, the value of the basic value shall be the amount of the final value of the securities referred to in Article 68. changes corresponding to the immediate exercise prior to the entry into force of the new securities the application to the aforementioned goods of the value of the presentation of values prior to the last one approved.

(b) For the buildings referred to in Article 68 (1) (b) .4.o, the base value shall be the result of multiplying the new cadastral value by a quotient, determined by the General Directorate of the Catastro which, calculated with its first two decimal places, it is obtained to divide the mean cadastral value of all the buildings of the same class of the municipality included in the last register between the mean of the cadastral values resulting from the application of the new setting of values.

In the collective valuation procedures of a general nature, once the corresponding value presentation has been approved, the General Directorate of the Catastro will make public the average cadastral value of all the properties of the class of which is included in the last register of the municipality and the average cadastral value resulting from the application of the new paper, before the start of the notifications of the cadastral values. Notices of public exposure of these average values shall be published by edicts in the Official Gazette of the Province, indicating the place and time limit, which shall not be less than 15 days.

Also, this base value will be used for those properties that need to be again valued as different class goods than they had. "

Item 15th. Amendment of Article 71.

Article 71 is amended, which is worded as follows:

" Article 71.

1. In the cases referred to in Article 68 (1) (b) .1, the calculation of a new reduction period shall be initiated and the right to apply the remainder of the reduction to be applied shall be extinguished.

2. In the cases referred to in Article 68 (1) (b) .2.o, 3.o and 4.o the calculation of a new reduction period shall not be initiated and the reduction coefficient applied to the buildings concerned shall take the value corresponding to the rest of the buildings. of the municipality. '

Article sixteenth. Amendment of Article 72.

Article 72 is amended, which is worded as follows:

" Article 72.

1. The full quota of this tax shall be the result of applying to the liquidable basis the rate of charge referred to in the following Article.

2. The liquid quota will be obtained by minoring the full quota in the amount of the legally provided bonuses. "

Article seventeenth. Amendment of Article 73.

Article 73 is amended, which is worded as follows:

" Article 73.

1. The minimum and extra charge rate shall be 0,4 per 100 in the case of urban real estate and 0,3 per 100 in the case of rustic immovable property, and the maximum shall be 1,10 per 100 for the urban and 0,90 per 100 for the rustic property.

2. The rate of charge applicable to the real estate of special characteristics, which shall be of an additional nature, shall be 0,6 per 100. The municipalities may establish for each group of the same existing in the municipality a differentiated rate which, in no case, shall be less than 0,4 per 100 and not more than 1,3 per 100.

3. The respective municipalities may increase the rates set out in paragraph 1 with the percentage points which are indicated for each case, where one of the following conditions is present. In the case of several, you may choose to make use of the intended increase for a single one, some or all of them:

Percentage points

Urban Goods Real Estate

B) Municipalities in which the public transport service is provided for the public area ............................... 0,05 C) Municipalities whose councils provide more services for those to whom they are obliged Article 26 of Law 7/1985 of 2 April ............................ 0.06 0.06 D) Municipalities in which land of a rustic nature represents more than 80 per 100 of the total area of the term .................................. 0,00 0,15 Percentage points

Urban Goods Real Estate

A) Municipalities that are provincial capital or Autonomous Community ....... 0.07 0.06 4. Within the limits resulting from the provisions of the preceding paragraphs, the Councils may establish, for urban real estate, excluding those for residential use, differentiated rates in accordance with the uses laid down in the cadastral regulations for the valuation of buildings. Where the buildings are assigned several uses, the type corresponding to the use of the main building or dependency shall apply.

Such rates can only be applied, at most, to 10 per 100 of the urban real estate of the municipal term that, for each use, has higher cadastral value, to which effect the tax ordinance of the tax will point out the corresponding value threshold for each or all uses, from which the increased rates will apply.

In the case of residential buildings that are permanently unemployed, for complying with the conditions that are determined to be regulated, the Councils may require a surcharge of up to 50 per 100 of the Liquid tax quota. Such surcharge, which shall be required of the taxable persons of this tribute and which shall be applicable, as not provided for in this paragraph, the regulatory provisions thereof, shall be due on 31 December and shall be settled annually by the Councils, once the property has been removed, together with the administrative act for which it is declared.

5. By way of derogation, in the municipalities where new land and urban land registry values come into force, resulting from collective valuation procedures of a general nature, the Councils may, for a period of time, not more than six years, reduced rates of charge, which may not be less than 0,1 per 100 for urban real estate or 0,075 per 100 for rustic buildings.

6. The municipalities which agree on new rates of charge, due to the fact that the respective municipality is in general collective valuation procedures, will have to approve these rates provisionally prior to the start of the individual notifications of the new securities and, in any case, before 1 July of the year immediately preceding the year in which they are due to take effect. This agreement will be transferred to the General Directorate of the Catastro within that period.

7. In the cases referred to in Article 67 (3) of this Law, the City Council shall apply to the rural and urban real estate which becomes part of its municipal term the type of tax in force in the municipality of origin, unless you agree to set a different one. "

Article eighteenth. Amendment of Article 74.

Article 74 is amended, which is worded as follows:

" Article 74.

1. They shall be entitled to a bonus of between 50 and 90 per 100 in the full share of the tax, provided that this is requested by the persons concerned before the start of the works, the buildings constituting the object of the business of the undertakings concerned. development, construction and real estate promotion of both new and rehabilitated work, and do not appear among the assets of its fixed assets. In the absence of a municipal agreement, the maximum allowance provided for in this article shall apply to the real estate concerned.

The period of application of this allowance shall comprise from the tax period following that in which the works are initiated until after the completion of the works, provided that works are carried out during that period. urbanization or effective construction, and without, in any case, exceeding three tax periods.

2. They shall be entitled to an allowance of 50 per 100 in the full tax rate, for the three tax periods following that of the final qualification, the official protection housing and those which are comparable to that of the These are in accordance with the regulations of the respective Autonomous Community. Such bonus shall be granted at the request of the person concerned, which may be effected at any time before the end of the three tax periods of duration of the same and shall take effect, where appropriate, from the tax period next to the one on which it is requested.

The municipalities may provide a bonus of up to 50 per 100 in the full tax rate, applicable to these buildings after the deadline specified in the previous paragraph. The tax ordinance will determine the duration and the annual amount of this bonus.

3. They shall be entitled to a bonus of 95 per 100 of the full quota and, where appropriate, of the tax surcharge referred to in Article 134 of this Law, the rustic property of agricultural cooperatives and Community land exploitation, in the terms laid down in Law 20/1990 of 19 December on the Tax Regime of Cooperatives.

4. The tax ordinances shall specify the substantive and formal aspects of the allowances referred to in the preceding paragraphs, as well as the conditions of compatibility with other tax benefits. ' Article 19. Amendment of Article 75.

Article 75 is amended, which is worded as follows:

" Article 75.

1. The tax ordinances may regulate a bonus of up to 90 per 100 of the full tax in favour of urban real estate located in areas or areas of the municipality which, under the legislation and planning, correspond to population settlements singularized by their involvement or preeminence of primary activities of a agricultural, livestock, forestry, fishing or analogous nature and which have a level of municipal competition services, Infrastructure or collective equipment lower than existing in the consolidated areas or areas of the same, provided that its economic characteristics give special protection.

The peculiar characteristics and scope of the population centres, areas or areas, as well as the typologies of the buildings and land uses necessary for the application of this bonus and its duration, annual amount and other substantive and formal aspects will be specified in the tax ordinance.

2. The municipalities may agree, for each financial year, to apply to the real estate a bonus in the full tax equivalent to the positive difference between the full share of the financial year and the liquid share of the financial year the latter multiplied by the annual maximum increase coefficient of the liquid quota provided by the tax ordinance for each of the tranches of cadastral value and, where appropriate, for each of the various classes of crops or (a) the use of the buildings used in the construction of the building and the construction of the construction site; different real estate in the municipality.

Such a bonus, the maximum duration of which may not exceed three tax periods, shall be effective from the entry into force of new cadastral values of immovable property of the same kind, resulting from a the procedure for collective valuation of a general municipal nature. The ordinance shall also lay down the conditions for the compatibility of this bonus with the others benefiting the same buildings.

Subject to the provisions of the preceding paragraph, in the event that the application of another bonus is terminated in the period immediately preceding the period in which the bonus is applied to the same property. (a) the quota for which the annual maximum increase coefficient shall be applied, where appropriate, shall be the full quota for the preceding financial year.

When in any of the tax periods in which this allowance is applied, a change in the cadastral value of the buildings, resulting from alterations susceptible to cadastral registration, of the change of (a) class of the building or a change of use as determined by the modification of the urban planning, for the calculation of the allowance shall be considered as a liquid quota for the preceding financial year resulting from the application of the rate of that year to the base value determined in accordance with the provisions of Article 70 of this Law.

The tax settlements resulting from the application of this bonus will be governed by the provisions of article 124.3 of Law 230/1963 of 28 December, General Tax, without the need for notification of this. individual in cases of establishment, modification or deletion of the same as a result of the approval or modification of the tax ordinance.

3. The municipalities by means of ordinance may regulate a bonus of up to 90 per 100 of the full fee of the tax in favour of each group of real estate of special characteristics. The ordinance shall specify the duration, annual amount and other substantive and formal aspects relating to this allowance.

4. The tax systems may regulate a bonus of up to 90 per 100 of the full tax rate in favour of those taxable persons who have the status of large family holders. The ordinance shall specify the class and characteristics of the immovable property to which it affects, duration, annual amount and other substantive and formal aspects of this bonus, as well as the conditions of compatibility with other benefits "

Article 20. Amendment of Article 76.

Article 76 is amended, which is worded as follows:

" Article 76.

1. The tax shall be payable on the first day of the tax period.

2. The tax period coincides with the calendar year.

3. The facts, acts and businesses that must be the subject of a declaration or communication to the Real Estate Registry shall be effective in the accrual of this tax immediately after the time they produce cadastral effects. The effectiveness of the cadastral inscriptions resulting from the procedures of collective valuation and the determination of the cadastral value of the real estate of special characteristics will coincide with that previewed in the regulatory norms of the Real Catastro. "

Article twenty first. Amendment of Article 77.

Article 77 is amended, which is worded as follows:

" Article 77.

1. The alterations concerning the real estate susceptible of cadastral registration that are of importance for the purposes of this tax will determine the obligation of the taxable persons to formalize the declarations conducive to their registration in the Real Estate Registry, in accordance with its regulatory standards.

2. Without prejudice to the right of the General Directorate of the Catastro to require the data subject, in each case to be relevant, in the municipalities covered by the tax ordinance to the communication procedure provided for in the rules The statements referred to in this article shall be understood when the circumstances or alterations referred to in the corresponding license or municipal authorization, of course in which the the taxable person shall be exempt from the obligation to declare mentioned above. '

Article twenty-second. Amendment of Article 78.

Article 78 is amended, which is worded as follows:

" Article 78.

1. The liquidation and collection, as well as the review of the acts dictated by the tax administration of this tax, will be the exclusive competence of the Councils and will include the functions of recognition and denial of exemptions and -subsidies, implementation of the liquidations leading to the determination of the tax debts, the issuance of the recovery documents, the resolution of the cases of return of undue income, the resolution of the resources that are interposed against such acts and actions for assistance and information to the taxpayer referred to the matters covered by this paragraph.

2. The municipalities may group together in a single charging document all the quotas of this tax relating to the same taxable person in the case of rustic goods in the same municipality.

3. The City Councils shall determine the liquidable basis where the tax base results from the processing of the procedures for declaration, communication, application, sub-healing of discrepancies and cadastral inspection provided for in the regulatory standards of the Real Estate.

4. The individual notification of tax settlements shall not be required in cases where, in accordance with Articles 66 et seq. of this Law, notifications of the cadastral value and the liquidable basis have been previously carried out. provided for in the collective valuation procedures.

After the period of impeachment provided for in the above notifications has elapsed without the use of the relevant resources, the notified tax and liquidable bases shall be deemed to be consensual and firm, without any be the subject of a new challenge as the annual levy is charged.

5. The tax is managed on the basis of the information contained in the cadastral Padron and in the other expressive documents of its variations elaborated to the effect by the General Directorate of the Catastro, without prejudice to the municipal competence for the qualification of unoccupied residential buildings. This Register, which shall be formed annually for each municipal term, shall contain the information relating to the real estate, separately for each class and shall be sent to the tax authorities before 1 March of each year.

6. The data contained in the cadastral Register and in the other documents referred to in the preceding paragraph shall be included in the collection lists, income documents and supporting documents for the payment of the Property Tax.

7. In the cases where it is established, after the issuance of the documents referred to in the preceding paragraph, the non-coincidence of the taxable person with the holder

cadastral, the corrections to which the managing body can agree to the effects of the tax due for the corresponding financial year, must be immediately communicated to the Directorate General of the Cadastre in the manner in which it is determined. This settlement shall be provisional in the absence of a delegation of functions agreement between the Catastro and the relevant local authority or local authority.

In this case, in the light of the information submitted, the General Directorate of the Catastro will confirm or modify the cadastral holder by agreement that will inform the City Council or local entity to practice, if necessary, final settlement.

8. The competencies that are attributed to the Property Tax in this article will be exercised directly by those or through the agreements or other forms of collaboration that will be held with any of the Public administrations in the terms provided for in Law 7/1985, of April 2, Regulatory of the Bases of the Local Regime, with application of the provisions of Title I of Law 30/1992, of 26 November, of Regime Legal of Public Administrations and of the Common Administrative Procedure.

Without prejudice to the foregoing, the local authorities recognized by the laws and the uniprovincial Autonomous Communities in which the respective Councils are integrated shall take over the exercise of these powers when so request the City Council concerned, in the form and time limits to be established. "

Subsection 2.a Tax on Economic Activities

Article twenty-third. Amendment of Article 83.

Article 83 is amended, which is worded as follows:

" Article 83.

1. They are exempt from the tax:

(a) The State, the Autonomous Communities and the local authorities, as well as the Autonomous Bodies of the State and the public law entities of the same character as the Autonomous Communities and local entities.

(b) taxable persons who initiate the exercise of their activity in Spanish territory during the first two periods of tax of this tax in which the same is developed.

For these purposes, the commencement of the exercise of an activity shall not be deemed to have occurred where the activity has previously been developed under another ownership, which shall be understood to be, inter alia, assumptions, in cases of merger, division or contribution of branches of activity.

c) The following passive subjects:

The physical persons.

The taxable persons of the Corporate Tax, civil societies and entities of Article 33 of Law 230/1963 of 28 December, General Tax, which have a net amount of the business figure below 1,000,000 euros.

As for taxpayers for the Non-Resident Income Tax, the exemption will only reach those who operate in Spain by permanent establishment, provided they have a net amount of the business figure less than 1,000,000 euros.

For the purposes of applying the exemption provided for in this paragraph, the following rules will be taken into account:

1.a The net amount of the turnover shall be determined in accordance with the provisions of Article 191 of the consolidated text of the Law on Companies, approved by Royal Decree 1564/1989 of 22 December 1989.

2.a The net amount of the turnover shall be, in the case of the taxable persons of the Tax on Companies or the taxpayers for the Income Tax of non-residents, that of the tax period (a) presentation of statements by such taxes would have ended the year before that of the tax. In the case of civil societies and the entities referred to in Article 33 of Law 230/1963 of 28 December, General Tax, the net amount of the turnover shall be that corresponding to the penultimate year preceding that of the accrual of this tax. If the tax period has been shorter than the calendar year, the net amount of the turnover shall be raised per year.

3.a For the calculation of the amount of the business figure of the taxable person, account shall be taken of all economic activities carried out by the taxable person.

However, when the entity is part of a group of companies within the meaning of Article 42 of the Trade Code, the net amount of the business figure shall relate to the set of entities belonging to that group.

For the purposes of the foregoing paragraph, it shall be understood that the cases of Article 42 of the Trade Code are those listed in Section 1.a of Chapter I of the rules for the formulation of the annual accounts consolidated, approved by Royal Decree 1815/1991 of 20 December.

4.a In the case of taxpayers for the Non-Resident Income Tax, the net amount of the turnover attributable to all the permanent establishments located on Spanish territory will be considered.

(d) The Social Security Management Entities and the Social Welfare Mutuals governed by Law 30/1995, of 8 November, of the Management and Supervision of Private Insurance.

(e) Public research bodies, educational establishments in all their degrees, which are fully funded by State resources, Autonomous Communities or local authorities, or by established foundations In the case of a public service, the educational establishments in all their grades, which are not for profit, are in a system of educational concert, even if they provide their students with books or articles of work or the services of half board or boarding school and even if they are sold on the same establishment of the products of the workshops devoted to such education, provided that the amount of such sale, which is of no use to any individual or third person, is exclusively intended for the purchase of raw materials or for maintenance of the establishment.

(f) Associations and foundations for physical, mental and sensory handicapped, non-profit, for the educational, scientific, care and employment activities which for teaching, education, rehabilitation and the protection of disabled persons, even if they sell the products of the workshops devoted to such purposes, provided that the amount of such sale, which is of no use to any individual or third person, is exclusively intended for the acquisition of materials premiums or the maintenance of the establishment.

g) The Spanish Red Cross.

(h) The taxable persons to whom the exemption is applicable under international treaties or conventions.

2. The taxable persons referred to in paragraphs (a), (d), (g) and (h) of the preceding paragraph shall not be obliged to make a declaration of discharge in respect of the registration of the tax.

3. The Minister of Finance shall establish in which cases the application of the exemption provided for in paragraph 1 (c) above shall require the submission of a communication addressed to the State Tax Administration Agency in which it is made the requirements laid down in that paragraph for the application of the exemption are satisfied. Such an obligation shall in no case be required in the case of taxpayers for the Income Tax of the Physical Persons.

The taxable persons who have applied the exemption provided for in paragraph 1 (b) above shall submit the communication, where appropriate, the year following the year after the start of their business.

For these purposes, the Minister of Finance shall establish the content, the time limit and the form of presentation of such communication, as well as the assumptions in which it shall be submitted by means of telematics.

As to variations likely to affect the exemption provided for in paragraph 1 (c) above, the third subparagraph of Article 91 (2) of this Law shall be as provided for in the third subparagraph.

4. The exemptions provided for in paragraphs (b), (e) and (f) of this Article shall be rogated and shall be granted, where appropriate, at the request of a party. "

Article twenty-four. Amendment of Article 85.

Article 85 is amended, which is worded as follows:

" Article 85.

The tax rate will be the result of applying the tax rates, in accordance with the precepts contained in this Law and in the provisions that complement and develop it, and the coefficients and bonuses provided for by the Law and, if applicable, agreed by each City Council and regulated in the respective tax ordinances. "

Article twenty-fifth. Amendment of Article 86.

One. Article 86 (3), which is worded as follows, is amended as follows:

" 3. By way of derogation from Article 92.2 of this Law, the tax administration of the provincial and national quotas fixing the rates of the tax shall be the responsibility of the State's tax administration, without prejudice to the collaboration which, in relation to such management, can be established with other entities. The provincial and national quotas may not be established either by the provincial coefficient or by the provincial surcharge, respectively, in Articles 88 and 124 of this Law. '

Two. A new paragraph 5 is added to Article 86, which is worded as follows:

" 5. The General Budget Laws of the State may modify the rates of the tax, as well as the instruction for the application thereof, and update the quotas contained therein.

The Government is authorized to issue any provisions necessary for the development and application of the tax and tax instruction. "

Article twenty-sixth. Amendment of Article 87.

Article 87 is amended, which is worded as follows:

" Article 87.

The municipal, provincial or national quotas fixed in the tax rates shall in any case apply a weighting coefficient, determined on the basis of the net amount of the taxable person's turnover.

This coefficient shall be determined according to the following table:

Net amount of business figure (Euro) Coefficient

From 1,000,000.00 to 5,000,000.00 ....... 1.29 From 5,000,000.01 to 10,000,000.00 ....... 1.30 From 10,000,000.01 to 50,000,000.00 ....... 1.32 From 50,000,000.01 to 100,000,000.00 ....... 1.33 Over 100,000,000.00 ................................... 1.35 No net business figure .................................... 1.31

For the purposes of the application of the coefficient referred to in this Article, the net amount of the taxable person's business figure shall be that corresponding to the set of economic activities carried out by him and determine in accordance with the provisions of paragraph 1 (c) of Article 83 of this Law. "

Article twenty-seventh. Amendment of Article 88.

Article 88 is amended, which is worded as follows:

" Article 88.

1. On the quotas modified by the application of the weighting coefficient provided for in the previous article, the Councils may establish a scale of coefficients to weigh the physical situation of the local within each municipal term, taking into account the category of the street in which radique.

2. This coefficient shall not be less than 0,4 and not more than 3,8.

3. For the purposes of setting the situation coefficient, the number of street categories to be established by each municipality shall not be less than 2 and not more than 9.

4. In municipalities where it is not possible to distinguish more than one street category, the situation coefficient cannot be established.

5. The difference in the value of the coefficient attributed to a street with respect to that attributed to the upper or lower category may not be less than 0,10. '

Article twenty-eighth. Amendment of Article 89.

Article 89 is amended, which is worded as follows:

" Article 89.

1. The tax rate will, in any case, be applied as follows:

(a) The cooperatives, as well as the unions, federations and confederations of the same and the agricultural processing companies, will have the bonus provided for in Law 20/1990 of 19 December on the Tax Regime of the Cooperatives.

(b) A bonus of 50 per 100 of the corresponding fee, for those who initiate the exercise of any professional activity, during the five years of activity following the conclusion of the second tax period development of the same. The period of application of the allowance shall expire five years after the end of the exemption provided for in Article 83 (1) (b) of this Law.

2. Where the tax ordinances so establish, the following allowances shall apply:

(a) A bonus of up to 50 per 100 of the corresponding fee, for those who initiate the exercise of any business activity and are taxed for municipal shares, during the five years of activity following the conclusion of the second development tax period of the same.

The application of the bonus will require that the economic activity has not been previously exercised under another ownership. It is understood that the activity has been previously exercised under another ownership, among others, in the assumptions of merger, division or contribution of branches of activity.

The period of application of the allowance shall expire five years after the end of the exemption provided for in Article 83 (1) (b) of this Law.

The allowance shall be applied to the tax rate, consisting of the fee-weighted fee for the coefficient laid down in Article 87 and amended, where appropriate, by the coefficient laid down in Article 88 of this Law. If the allowance referred to in subparagraph (a) of paragraph 1 is applicable, the allowance provided for in this subparagraph shall apply to the quota resulting from the application of the allowance referred to in paragraph 1 (a).

(b) A bonus for job creation of up to 50 per 100 of the corresponding fee, for taxable persons who are taxed for municipal shares and who have increased the average of their workforce with contract indefinite during the immediate tax period prior to that of the application of the bonus, in relation to the period before that.

The tax ordinance may provide for different bonus percentages, without exceeding the ceiling set in the previous paragraph, depending on the average increase in the number of employees under contract. indefinite.

The allowance shall apply to the fee resulting from applying, where applicable, the allowances referred to in paragraph 1 of this Article and paragraph (a) above.

c) A bonus of up to 50 per 100 of the corresponding fee for taxable persons who are taxed for municipal share and which:

Use or produce energy from facilities for the use of renewable energy or cogeneration systems.

For these purposes, facilities for the use of renewable energy will be considered as those defined as such in the Renewable Energy Development Plan. Cogeneration systems shall be considered as equipment and facilities for the joint production of electricity and useful thermal energy.

Perform your industrial activities, from the start of your activity or by subsequent transfer, in premises or facilities away from the most populated areas of the municipal term.

Establish a transport plan for workers that aims to reduce energy consumption and emissions caused by displacement to the workplace and to promote the use of means of transport more efficient, such as collective or shared transport.

The allowance shall apply to the fee resulting from applying, where applicable, the allowances referred to in paragraph 1 of this Article and paragraphs (a) and (b) above.

(d) A bonus of up to 50 per 100 of the corresponding share for taxable persons who are taxed for municipal shares and have a net income or return on economic activity negative or less than the amount that determine the tax ordinance, which may set different rates of bonus and limits depending on the division, grouping or group of tax rates in which the economic activity is classified.

The bonus will apply to the fee resulting from applying, where applicable, the bonuses referred to in paragraph 1 of this article and the preceding paragraphs of this paragraph.

3. The relevant tax ordinance shall specify the other substantive and formal aspects referred to in the previous paragraph. Among other matters, the tax ordinance will determine whether all or some of the above bonuses are applicable at the same time. "

Article twenty-ninth. Amendment of Article 91.

Article 91 (2) is amended, which is worded as follows:

" 2. The taxable persons shall be obliged to submit the corresponding statements of discharge by stating all the elements necessary for their inclusion in the registration in the terms of Article 91.1 of this Law and within the time limit Regulation is established. The appropriate settlement shall then be carried out by the competent authority, which shall be notified to the taxable person, who shall make the entry as appropriate.

Likewise, taxable persons shall be obliged to communicate changes in physical, economic or legal order which occur in the exercise of the activities taxed and which are of importance for the purposes of this tax, and formalise within the timescales and regulentarily determined terms.

In particular, the taxable persons to whom the exemption provided for in paragraph 1 (c) of Article 83 of this Law does not apply, shall inform the State Agency of Tax Administration of the net amount of his business figure. In addition, the taxable person shall report any changes in the net amount of his business figure where such variation involves the modification of the application or not of the exemption provided for in paragraph 1 (c) of the Article 83 of this Law or a change in the tranche to be considered for the purposes of applying the weighting coefficient provided for in Article 87 of this Law. The Minister of Finance shall lay down the circumstances in which such communications shall be submitted, their content and time and form of presentation, as well as the cases in which they shall be submitted by telematic means. '

Subsection 3.a Mechanical Traction Vehicle Tax

Article 30. Amendment of Article 94.

Article 94 is amended, which is worded as follows:

" Article 94.

1. They will be exempt from tax:

(a) The official vehicles of the State, Autonomous Communities and local entities assigned to national defense or citizen security.

(b) The vehicles of diplomatic representations, consular posts, diplomatic agents and consular officers of career accredited in Spain, who are subjects of the respective countries, externally identified and condition of reciprocity in its extension and degree.

Likewise, vehicles of international organizations with headquarters or office in Spain and their officials or members with diplomatic status.

(c) Vehicles in respect of which this is derived from the provisions of international treaties or conventions.

(d) ambulances and other vehicles directly intended for health care or for the movement of injured or sick persons.

(e) Vehicles for persons with reduced mobility referred to in point A of Annex II to the General Regulation of Vehicles, approved by Royal Decree 2822/1998 of 23 December 1998.

Also, vehicles registered in the name of the disabled are exempt for exclusive use. This exemption shall apply as long as those circumstances are maintained, both for vehicles driven by persons with disabilities and for vehicles intended for transport.

The exemptions provided for in the previous two paragraphs shall not apply to taxable persons who are beneficiaries of the same by more than one vehicle at the same time.

For the purposes of this paragraph, persons with disabilities shall be deemed to have this legal status in grade equal to or greater than 33 per 100.

(f) Buses, minibuses and other vehicles intended or assigned to the urban public transport service, provided that they have a capacity exceeding nine seats, including that of the driver.

g) Tractors, trailers, semi-trailers and machinery provided with Agricultural Inspection Cart.

2. In order to be able to apply the exemptions referred to in paragraphs (e) and (g) of paragraph 1 of this Article, the persons concerned shall be required to grant their concession indicating the characteristics of the vehicle, their registration number and the cause of the benefit. Declared exemption by the municipal administration, a document shall be issued stating its concession.

In relation to the exemption provided for in the second subparagraph of paragraph 1 (e) above, the person concerned must provide the certificate of the disability issued by the competent body and justify the destination of the vehicle before the City Council of the imposition, in the terms that it establishes in the corresponding tax ordinance. "

Article thirty first. Amendment of Article 96.

One. Article 96 (4), which is worded as follows, is amended as follows:

" 4. The municipalities may increase the quotas set out in paragraph 1 of this Article by applying them to a coefficient, which may not exceed 2.

The municipalities may fix a coefficient for each of the classes of vehicles provided for in the table of rates set out in paragraph 1 of this Article, which may be, in turn, different for each of the sections fixed in each class of vehicle, without in any case exceeding the maximum limit set in the preceding paragraph. '

Two. Article 96 (6), which is worded as follows, is amended as follows:

" 6. The tax systems may regulate, on the fee of the tax, increased or not

by applying the coefficient, the following bonuses:

(a) A bonus of up to 75 per 100 depending on the class of fuel consumed by the vehicle, in view of the impact of the combustion of such fuel on the environment.

b) A bonus of up to 75 per 100 depending on the characteristics of the engines of the vehicles and their impact on the environment.

(c) A bonus of up to 100 per 100 for historical vehicles or those of a minimum age of 25 years, counted from the date of their manufacture or, if this is not known, taking as such the of its first registration or, failing that, the date on which the corresponding type or variant was ceased to be manufactured.

The regulation of the remaining substantive and formal aspects of the bonuses referred to in the preceding letters shall be established in the tax ordinance. "

Article thirty-second. Amendment of Article 100.

Article 100 (2) is amended, which is worded as follows:

" 2. The owners of the vehicles, when they communicate to the Provincial Traffic Headquarters the reform of the same, provided that they alter their classification for the purposes of this tax, as well as in the cases of transfer, of change of domicile that It shall be established on the vehicle's driving licence, or on the ground of such vehicles, that the payment of the last receipt submitted for payment of the tax shall be credited to the Provincial Head of State in advance, without prejudice to the fact that it is payable by way of management and inspection the payment of all debts for such a concept accrued, settled, presented to the collection and not prescribed. The assumption of the definitive losses of vehicles with 15 or more years of age is exempted from the said accreditation obligation. '

Subsection 4.a Tax on Constructions, Facilities and Works

Article thirty-third. Amendment of Article 102.

Article 102 is amended, which is worded as follows:

" Article 102.

1. Taxable persons, natural persons, legal persons or entities of Article 33 of Law 230/1963 of December 28, General Tax, who own the construction, installation or work, are taxable persons. whether or not they own the building on which the building is carried out.

For the purposes set out in the preceding paragraph, the owner of the construction, installation or work shall be considered to be responsible for the costs or costs incurred.

2. In the event that the construction, installation or work is not carried out by the taxable taxpayer, it shall be the condition of the taxable persons who request the corresponding licenses or perform the construction, installations or works.

The substitute may require the taxpayer to pay the amount of the tax paid. "

Article thirty-four. Amendment of Article 103.

One. Article 103 (1), which is worded as follows, is amended as follows:

" 1. The tax base of the tax is constituted by the actual and actual cost of the construction, installation or work, and is understood as such, to these effects, the cost of material execution of that.

The value added tax and other similar taxes of special schemes, fees, public prices and other related local public property benefits are not part of the tax base. where appropriate, with the construction, installation or work, neither the professional fees, the business benefit of the contractor nor any other concept that does not, strictly, integrate the material execution cost. "

Two. Article 103 (3), which is worded as follows, is amended as follows:

" 3. The rate of charge of the tax shall be that fixed by each City Council, without such a rate exceeding 4 per 100. "

Article thirty-fifth. Amendment of Article 104.

One. Article 104 (2), which is worded as follows, is amended as follows:

" 2. Tax ordinances may regulate the following bonuses on the tax rate:

(a) A bonus of up to 95 per 100 in favour of buildings, installations or works that are declared of special interest or municipal utility for the purpose of competing social, cultural, historical-artistic or promotion of employment to justify such a declaration. That declaration shall be the responsibility of the Corporation and shall be agreed upon, upon request of the taxable person, by a favourable vote of the simple majority of its members.

b) A bonus of up to 95 per 100 in favour of buildings, installations or works in which systems are incorporated for the thermal or electrical use of solar energy for self-consumption. The application of this bonus shall be conditional on the installation of heat production facilities including collectors having the corresponding approval of the competent authority.

The allowance provided for in this letter shall apply to the fee resulting from applying, where applicable, the allowance referred to in paragraph (a) above.

c) A bonus of up to 50 per 100 in favour of buildings, installations or works linked to plans to promote private investments in infrastructure.

The allowance provided for in this letter shall apply to the fee resulting from applying, where applicable, the allowances referred to in paragraphs (a) and (b) above.

d) A bonus of up to 50 per 100 in favour of buildings, installations or works relating to official protection housing.

The allowance provided for in this paragraph shall apply to the fee resulting from applying, where applicable, the bonuses referred to in the preceding paragraphs.

e) A bonus of up to 90 per 100 in favour of buildings, installations or works that favour the conditions of access and habitability of the disabled.

The allowance provided for in this paragraph shall apply to the fee resulting from applying, where applicable, the bonuses referred to in the preceding paragraphs.

The regulation of the remaining substantive and formal aspects of the bonuses referred to in this paragraph will be established in the tax ordinance. Among other matters, the tax ordinance will determine whether all or some of the above bonuses are applicable at the same time. "

Two. A new paragraph 5 is added to Article 104, which is worded as follows:

" 5. The City Councils may establish in their fiscal ordinances systems for joint and coordinated management of this tax and the rate corresponding to the granting of the license. "

Subsection 5.a Tax on the Increase in the Value of Urban Nature's Land

Article thirty-sixth. Amendment of Article 105.

One. Article 105 (2), which is worded as follows, is amended as follows:

" 2. This tax is not subject to the increase in value that the land that has the consideration of rustics for the purposes of the Real Estate Tax. As a result, the increase in value is subject to the use of the land to be taken into account for urban purposes, for the purposes of the Property Tax, irrespective of whether or not they are referred to as such in the Cadastro or in the Godfather of that. For the purposes of this tax, it shall also be subject to the increase in value which the land integrated in real estate classified as having special characteristics for the purposes of the Real Estate Tax. "

Two. A new paragraph 3 is added to Article 105, which shall be worded as follows:

" 3. The tax shall not be subject to tax in the case of contributions of property and rights made by the spouses to the spousal society, awards which are then verified and transferred to the spouses in their favour and in payment. in payment of their common assets.

Nor will the tax be subject to tax in the case of transfers of immovable property between spouses or in favour of children, as a result of the enforcement of judgments in cases of invalidity, separation or divorce. marriage, whatever the matrimonial property regime. " Article thirty-seventh. Amendment of Article 106.

Article 106 is amended, which is worded as follows:

" Article 106.

1. Value increases that are expressed as a result of the following acts shall be exempt from this tax:

a) The constitution and transmission of rights of servitude.

(b) The transmissions of goods within the perimeter defined as a Historical-Artistic Set, or have been declared individually of cultural interest, as laid down in Law 16/1985, of 25 June, of the Spanish Historical Heritage, when their owners or holders of real rights credit that they have carried out works of conservation, improvement or rehabilitation in these buildings. For these purposes, the tax ordinance shall establish the substantive and formal aspects of the exemption.

2. In addition, the corresponding value increases shall be exempt from this tax where the obligation to satisfy the requirement is borne by the following persons or entities:

(a) The State, the Autonomous Communities and the local authorities, to which the municipality belongs, as well as the autonomous bodies of the State and the public law entities of the same character as the Autonomous Communities and the those local entities.

(b) The municipality of the imposition and other integrated local entities or in which that municipality is integrated, as well as their respective entities governed by public law of similar character to the State Autonomous Bodies.

c) Institutions that have the qualification of charities or teachers.

(d) Social Security Management Entities and Social Welfare Mutuals governed by Law 30/1995 of 8 November 1995 on the Management and Supervision of Private Insurance.

e) The holders of administrative concessions that are likely to be subject to the land affected by them.

f) The Spanish Red Cross.

g) Persons or entities to whom the exemption has been recognised in international treaties or conventions. "

Article 388th. Amendment of Article 108.

Article 108 is amended, which is worded as follows:

" Article 108.

1. The tax base of this tax is constituted by the increase in the value of the land, as evidenced at the time of the accrual and experienced over a maximum period of twenty years.

For the purposes of determining the tax base, account shall be taken of the value of the land at the time of the accrual, in accordance with paragraphs 2 and 3 of this Article, and the corresponding percentage in function of the provisions of paragraph 4.

2. The value of the land at the time of the accrual will result from the following rules:

(a) In the case of land transmissions, the value of such land transfers shall be the value of the accrual at that time for the purposes of the Real Estate Tax.

However, where such value is the result of a stock paper that does not reflect planning modifications approved after the approval of the said paper, it may be provisionally liquidated this value. tax under the same. In such cases, the value of the land shall be applied in the final settlement once it has been obtained in accordance with the collective valuation procedures which are instructed, referred to as the date of the accrual. When this date does not coincide with the effectiveness of the new cadastral values, they will be corrected by applying the corresponding updating coefficients, established to the effect in the General Budget Laws of the State.

When the land, even being urban in nature or integrated into a real property of special characteristics, at the time of the tax accrual does not have a certain cadastral value at the time, the City Council may practice the settlement when the referenced cadastral value is determined, referring to such value at the time of the accrual.

(b) In the constitution and transmission of real rights of the domain, the annual percentages referred to in paragraph 4 of this Article shall be applied to the part of the value defined in the preceding letter represents, in respect of the same, the value of the related rights calculated by applying the rules set for the purposes of the Tax on Proprietary Transmissions and Documented Legal Acts.

(c) In the constitution or transmission of the right to raise one or more plants on a building or land, or the right to perform construction under ground without implying the existence of a real area right, the percentages the annual content of paragraph 4 of this Article shall apply to the part of the value defined in subparagraph (a) which represents, in respect of that part, the module of proportionality fixed in the writing of the transmission or, failing that, that which results in the to establish the ratio between the surface or the volume of the plants to be constructed in flight or subsoil; and the total built-up area or volume once built.

(d) In the case of forced expropriations, the annual percentages referred to in paragraph 4 of this Article shall be applied on the part of the Justiprice corresponding to the value of the land, unless the value defined in the (a) of the preceding paragraph 2 is lower, in which case the latter shall prevail over the price.

3. Where the cadastral values are modified as a result of a collective valuation procedure of a general nature, it shall be taken as the value of the land or of the part thereof corresponding to the rules set out in the preceding paragraph, the amount to be applied to the new cadastral values, the reduction in each case to be determined by the respective Councils.

This reduction will be applied in respect of each of the first five years of effectiveness of the new cadastral values.

The reduction will be at least 40 per 100 and as a maximum limit of 60 per 100, in any case, at its maximum limit in the municipalities whose Ayuntamas do not fix any reduction. Councils may set a different reduction rate for each of the five years of application of the reduction.

The reduction provided for in this paragraph shall not apply to cases where the cadastral values resulting from the collective valuation procedure to which it relates are lower than that until then in effect.

The reduced cadastral value in no case may be less than the land cadastral value prior to the collective valuation procedure.

4. On the value of the land at the time of the accrual, as referred to in paragraphs 2 and 3 above, the annual percentage determined by each City Council shall be applied without exceeding the following limits:

a) Period of one to five years: 3.7.

b) Period of up to ten years: 3.5.

c) Period of up to fifteen years: 3.2.

d) Period of up to twenty years: 3.

To determine the percentage, the following rules apply:

1.a The increase in the value of each operation taxed by the tax shall be determined in accordance with the annual percentage fixed by the City Council for the period covering the number of years for which it has been established manifest such an increase.

2.The percentage to be applied to the value of the land at the time of the accrual shall be that of multiplying the annual percentage applicable to each individual case for the number of years throughout which it has been established manifest the increment of the value.

3.a To determine the annual percentage applicable to each individual transaction under Rule 1.a and to determine the number of years for which the annual percentage rate is to be multiplied in accordance with Rule 2.a, only consider the full years of the period of the reporting period for the increase in value, without any such effects being considered as the fractions of years of that period.

The annual percentages set out in this paragraph may be amended by the General Budget Laws of the State. "

Article thirty-ninth. Amendment of Article 109.

Article 109 is amended, which is worded as follows:

" Article 109.

1. The rate of charge of the tax shall be that fixed by each City Council, without such a rate exceeding 30 per 100.

Within the limit set out in the preceding paragraph, the Councils may set a single rate of charge or one for each of the periods of generation of the value increase indicated in paragraph 4 of the previous article.

2. The full share of the tax will be the result of applying the tax rate to the tax base.

3. The liquid quota of the tax shall be the result of applying the allowance referred to in the following paragraph where appropriate.

4. The tax systems may regulate a bonus of up to 95 per 100 of the full share of the tax, in the transfer of land, and in the transmission or constitution of real rights of the domain, carried out in title For the sake of death in favor of the descendants and adoptees, the spouses and the ascendants and adopters.

The regulation of the remaining substantive and formal aspects of the bonus referred to in the preceding paragraph shall be established in the tax ordinance. "

Article 40th. Amendment of Article 111.

Article 111 (4) is amended, which is worded as follows:

" 4. The municipalities are empowered to establish the system of self-validation by the taxable person, which will take the revenue of the quota resulting from it within the time limits provided for in paragraph 2 of this Article. With regard to such self-measures, the City Council may only verify that they have been carried out by the correct application of the rules governing the tax, without the possibility of any different values, bases or quotas resulting from such rules.

In no case may the tax on self-settlement be required in the case of the assumption referred to in the third subparagraph of paragraph 2 (a) of Article 108 of this Law. "

CHAPTER II

Participation in State taxes

Article 41st. Participation of municipalities in state taxes.

New wording is given to Chapter III of Title II, which is worded as follows:

" TITLE II

Municipalities resources

CHAPTER III A)

Disposal of State Tax Collection

SECTION 1.A SCOPE AND GENERAL CONDITIONS OF DISPOSAL

Article 112. Subjective scope.

With the scope and conditions laid down in this chapter, the proportion laid down in Article 112a is given the yield obtained by the State in the taxes related thereto, in favour of the municipalities in the which is one of the following conditions:

(a) That are provincial capitals, or Autonomous Community, or (b) that have a population of equal or greater than 75,000 inhabitants. For this purpose, the population resulting from the update of the municipal Register of inhabitants shall be considered as valid for the entry into force of the model set out in this Section.

Article 112 bis. Purpose of the assignment.

1. Each of the municipalities included in the subjective field before fixed shall be given the following percentages of the yields which have not been transferred to the Autonomous Communities, obtained in the state taxes mentioned:

(a) The 1,6875 per 100 of the liquid income tax quota of the Physical Persons.

b) 1.7897 per 100 of the liquid collection for the Value Added Tax attributable to each municipality.

c) 2,0454 per 100 of the liquid collection attributable to each municipality for the Special Taxes on Beer, on Fermented Wine and Drinks, on Intermediate Products, on Alcohol and Derived Beverages, on Hydrocarbons and on Tobacco Labors.

2. The bases or yields on which the above percentages shall apply shall be determined in accordance with the following Article 112b.

3. In any event, the municipalities may not assume any regulatory, management, liquidation, collection and inspection powers for the taxes on which they are paid, nor for the review of the acts adopted on the basis of the management of the such taxes, the ownership and exercise of which shall be exclusively for the State.

Article 112 ter. Yields on which the percentages to be transferred shall apply.

1. For the purposes of paragraph 1 of the foregoing Article, the amount of the liquid quota in the Income Tax of the Physical Persons shall be understood as:

1.o The state share of the liquid quotas that residents in the territory of the municipality have entered in the Income Tax declaration of the Physical Persons filed and entered within the time limits established by the Tax Regulatory Law, which is based on the corresponding share of the double taxation of dividends and international double taxation.

2.o The state share of the liquid quotas of the taxpayers resident in the territory of the municipality that are not obliged to declare and request a refund, which is reduced in the corresponding part of the double deduction taxation of dividends.

3.o The result of applying the 67 per 100 on the withholding tax borne by the taxpayers resident in the territory of the municipality that are not obliged to declare, that they have not applied for refunds and that they obtain income above EUR 6,010,12.

4.o The part of the tax liability that, corresponding to the State, is entered by inspection records, liquidations practiced by the Administration and declarations submitted outside the deadlines established by the regulations Regulation of the tax. For these purposes, debt shall be understood.

tax constituted by the liquid quota plus the concepts referred to in Article 58 (2) of Law 230/1963 of 28 December, General Tax, with the exception of the surcharges provided for in paragraphs (a) and (d). This item shall be reduced in the amount of refunds for undue income to be charged to the State, including legal interest.

2. For the same purposes as in the preceding paragraph, the amount of the amount of the tax on the value added tax, in the tax on beer, on wine and fermented beverages, on intermediate products, on the Alcohol and Beverages Derived, on Hydrocarbons, and on Tobacco Labors, the percentage not given to the Autonomous Communities of the total liquid income of the State Treasury by the concepts that make up each of these taxes, with Box criterion, obtained once discounted from the gross collection the returns and the transfers or adjustments (positive or negative) established in the Concert and Convention with the Forales of the Basque Country and Navarre, respectively.

Article 112 quater. Review.

On a four-year basis, the set of municipalities to be included in the cession model described in this chapter shall be reviewed, taking into account compliance at the time of the review of the requirements laid down for the delimitation of the subjective scope of Article 112.

SECTION 2.A SCOPE AND SPECIFIC CONDITIONS OF DISPOSAL

Article 113. Scope of the assignment and connection points in the Income Tax of the Physical Persons.

1. Each of the municipalities included in the subjective area of Article 112 is transferred to the Autonomous Communities of the Income Tax on the Income of the Physical Persons produced in its territory, defined in the Article 112 (1) of the preceding

.

2. In the territory of a municipality, the yield of the Income Tax of the Physical Persons that corresponds to those taxable persons who have their habitual residence in the municipality is considered to be produced.

3. Where taxable persons integrated into a family unit have their habitual residence in different municipalities and opt for joint taxation, the yield to be transferred shall be understood as being in the territory of the municipality in which they are situated. habitual residence of the member of that unit with the largest liquidable base in accordance with the rules of individualisation of the tax.

4. For the purposes of this Chapter, natural persons resident in Spanish territory shall be deemed to be a municipality in the territory of a municipality where a greater number of days of the tax period remain on their territory. on the Income of Physical Persons.

To determine the length of stay, temporary absences will be computed.

Unless proof to the contrary, a natural person shall be deemed to remain in the territory of a municipality when in that territory the habitual dwelling, being defined in accordance with the provisions of the regulatory rules of the Income Tax of the Physical Persons.

5. Where it is not possible to determine the permanence referred to in the preceding paragraph, they shall be considered to be resident in the territory of the municipality in which they have their principal centre of interest, the territory where they obtain the largest Part of the tax base of the Income Tax of the Physical Persons, determined by the following income components:

a) Workups of the job, which will be understood to be obtained where the respective job center is located, if it exists.

(b) Real estate capital and property gains derived from real estate, which shall be understood to be derived from the place where they are located.

(c) Business or professional activities resulting from economic activities, which shall be understood as having been obtained where the management centre of each of them is located.

(d) Bases attributed to the professional transparency regime, which shall be understood as being obtained at the place where the professional activity is carried out.

6. Where the residence cannot be determined in accordance with the criteria laid down in the two preceding paragraphs, it shall be considered to be resident in the place of its last residence declared for the purposes of the Income Tax of the Physical Persons.

7. Natural persons resident in Spanish territory who do not remain in that territory more than one hundred and eighty-three days during the calendar year shall be considered to be resident in the territory of the municipality in which the main core or the base of their activities or of their economic interests.

8. Natural persons resident in Spanish territory by application of the presumption provided for in the second paragraph of Article 9 (1) (b) of Law 40/1998 of 9 December 1998 on the Income Tax of the Physical Persons shall be considered to be resident. in the territory of the municipality in which the non-legally separated spouse is habitually resident and the minor children who are dependent on them.

Article 113a. Scope of the assignment and connection point in the Value Added Tax.

1. Each of the municipalities included in the subjective area defined in Article 112 is given out on 1,7897 per 100 of the yield not given to the Autonomous Communities of the Value Added Tax which is charged on its territory.

2. This imputation shall be determined by the application of the rate of consumption of the Autonomous Community to which each municipality belongs to the collection of the liquid corresponding to the State, in accordance with the terms of Article 112b (2) above, weighting the result by the representativeness, in the field of the respective Autonomous Community, of the population of law of the municipality, in the following terms:

PIVAt m = 0.017897 ^ RLIVAt ^ ICT i ^ (Pt m/Pt i) Representing:

The term PIVAt m the amount of the Value Added Tax yield given to the municipality m in the year t.

The term RLIVAt is the collection of the tax on the Value Added Tax corresponding to the State in the year t, which has not been the object of cession to the Autonomous Communities.

The term ICT i, the territorial consumption index certified by the Instituto Nacional de Estadística and drawn up for the purposes of the allocation of value added tax by Autonomous Communities, determined for the Community Autonomous i to which the municipality belongs, for the year t.

The terms Pt m and Pt i the right populations of the municipality m and the Autonomous Community i, respectively, according to the update of the Municipal Register of inhabitants in force at 31 December of the year t.

Article 113 ter. Scope of the assignment and point of connection in the Special Taxes on manufacturing.

1. Each of the municipalities included in the subjective area defined in Article 112 is given out on 2,0454 per 100 of the income not transferred to the Autonomous Communities of the Taxes on Beer, on Fermented Wine and Drinks, on Intermediate products, on Alcohol and Derived Beverages.

2. With regard to the Excise on Beer, on Fermented Wine and Drinks, on Intermediate Products and on Alcohol and Beverages Derived, this imputation shall be determined by the application of the Community's index of territorial consumption Autonomous to which each municipality belongs to the liquid collection corresponding to the State, in the terms of Article 112b (2) above, for each of the Special Taxes cited, weighting the result by the representativeness, in the field of the respective Autonomous Community, of the population of law of the municipality.

With regard to the taxes referred to in the preceding paragraph, the calculation method will be determined by the following wording:

PIIEE (h) t m = 0.020454 ^ RLIEE (h) t ^ ICT i (h) ^ ^ (Pt m/Pt i)

Representing:

The term PIIEE (h) t m, the amount of yield transferred by Special Tax h to the municipality m in the year t. Corresponding to the taxes referred to in this paragraph.

The term RLIIEE (h) t, the liquid collection by the Special Tax h corresponding to the State in the year t, which has not been the object of cession to the Autonomous Communities.

The term ICT i (h) the index of territorial consumption, certified by the Instituto Nacional de Estadística, of the Autonomous Community i to which the municipality belongs, for the year t, and elaborated for the purpose of the allocation of the Special Tax h by Autonomous Communities.

The terms Pt m and Pt i, the communities of law of the municipality m and the Autonomous Community, respectively, according to the update of the Municipal Register of inhabitants in force at 31 December of the year t.

3. For the purposes of paragraph 1 above, the yield on the yield of the hydrocarbon tax corresponding to the rate of deliveries of gasolines, gasoils and fuel oils in the territory of a municipality shall be deemed to have been produced in the territory of a municipality. According to data from the Ministry of Economy, weighted by the corresponding tax rates.

In addition, the yield on the yield of the Tobacco Labors Tax corresponding to the sales index for tobacco durations in the respective municipal term will be considered to be produced in the territory of a municipality, according to Data from the Commissioner for the Tabacos Market, weighted by the corresponding tax rates.

CHAPTER III B)

Participation of municipalities in state taxes

SECTION 1.A SUPPLEMENTARY FUND FOR FUNDING

Article 114. Subjective scope.

They will participate in State taxes according to the model described in this section of the municipalities referred to in Article 112 of this Law.

Article 114 bis. General rule for determining participation in the Supplementary Financing Fund.

The participation in the Supplementary Financing Fund will be determined, for each financial year and for each municipality, applying an index of evolution to the participation that corresponds to it, for this concept, in the base year of the new model, based on this general formula:

PFCt m = PFC2004 m ^ IEt/2004 Being:

PFCt m and PFC2004 m, the participation in the Complementary Fund of Financing of the municipality m in the year t and in the year 2004, respectively.

IEt/2004 the evolution index between the base year and the year t.

For these purposes, the first application of this model, i.e. 2004, shall be understood as the base year.

Article 114 ter. Rule to determine participation in the Financing Supplementary Fund of the base year.

1. The participation in the Supplementary Financing Fund for the base year shall be calculated by deducting the amount corresponding to the transfer of the yield on state taxes, as provided for in Chapter III (A) of this Regulation. Title, of the total participation that would result from increasing the participation in State taxes of the year 2003 in the rate of evolution established in accordance with the provisions of Article 114 c:

PIE2004 m = PIE2003 m x IE2004/2003 PFC2004 m = PIE2004 m PIRPF2004 m-PIVA2004 m -- R PIIEE (h) 2004 m

Representing:

PIE2003 m and PIE2004 m the total participation in the revenue of the State corresponding to the municipality m in the last year of application of the previous model, year 2003, and in the base year of the new model, year 2004, respectively.

IE2004/2003 the evolution index between 2003 and 2004.

PFC2004 m the participation of the municipality m in the Supplementary Fund of Financing in the year 2004.

PIRPF2004 m, PIVA2004 m and R PIIEE (h) 2004 m amounts of the returns transferred to the municipality m in relation to the Taxes on the Income of the Physical Persons, on the Value Added and with the set of Excise manufacture for the year 2004 and determined in accordance with Articles 113, 113 a and 113 b.

2. The participation in taxes of the State of 2003, these effects will be understood in gross terms, including, in relation to each of these municipalities, all the elements and considering the particularities referred to in the Article 65 (2), (3), (4) and (5) and Article 72 (3) of Law 52/2002 of 30 December 2002 on the General Budget of the State for 2003.

Article 114 quater. Index of evolution.

The rate of evolution will be determined, in any case, by the increase in the tax revenue of the State (ITE) between the year to which the participation corresponds and the base year, in the following terms:

IE t/2004 = ITEt/ITE2004

The State Tax Revenue (ITE) is constituted by the state collection, excluding the one that can be transferred to the Autonomous Communities, by the Income Tax of the Physical Persons, the Tax on the Value Added and Excise on the Beer, on the Wine and Fermented Drinks, on Intermediate Products, on Alcohol and Derived Beverages, on Hydrocarbons and on Tobacco Labors. It will be in line with the provisions of Law 21/2001 of 27 December 2001 regulating the fiscal and administrative measures of the new system of financing of the Autonomous Communities of the common system and cities with a status of Autonomy.

SECTION 2.A PARTICIPATION OF OTHER MUNICIPALITIES

Article 115. Subjective scope.

They will participate in state taxes according to the model described in this section of the municipalities not included in Article 112 of this Law.

Article 115 bis. Determination of the total amount of participation.

1. The total participation for each financial year shall be determined by applying an evolution rate to that corresponding to the base year, in the following terms:

PIEt * = PIE2004 * x IEt/2004

Being:

PIEt * and PIE2004 * the total revenue share of the State in the year t and in 2004, respectively, corresponding to the municipalities to which this model applies.

IEt/2004 the evolution index between the base year and the year t.

2. For these purposes, the rate of evolution shall be determined by the increase in the tax revenue of the State between the year to which the participation corresponds and the base year, in the terms of the previous Article 114 c

IE t/2004 = ITEt/ITE2004

3. The total participation corresponding to the base year shall be determined by increasing the participation in State taxes resulting in 2003 for the set of municipalities mentioned in the previous article.

PIE2004 * = PIE2003 * x D ITE2004/2003

4. The participation in taxes of the State of 2003, these effects will be understood in gross terms, including, in relation to the aforementioned group of municipalities, all the elements and considering the particularities referred to in the paragraphs two, three, four and five of Article 65 of Law 52/2002 of 30 December 2002 on the General Budget of the State for 2003.

Article 115 ter. Distribution of the total amount of participation.

1. The total participation determined in accordance with the provisions of the previous Article shall be distributed among the municipalities included in this financing model according to the following criteria:

(a) 75 per 100 depending on the number of inhabitants of each municipality, according to the population figures approved by the Government, which appear in the last municipal Register in force, weighted by the following coefficients multipliers:

Issue Number of Coefficient Inhabitants

1 Of more than 50,000. ... ... 1,40 2 From 20,001 to 50,000 ... ... 1.30 3 From 5,001 to 20,000 .. .. ... 1.17 4 Up to 5,000 .. .. .. .. ... ............................ 1.00

(b) 12,5 per 100 depending on the average tax effort of each municipality obtained in the second financial year preceding that of the corresponding State General Budget Law, weighted by the number of inhabitants of the right.

For these purposes, the average fiscal effort of each municipality shall mean that for each financial year, the General Budget Laws of the State shall be determined according to the implementation of the taxes by the municipalities. contained in this Law.

c) 12,5 per 100 depending on the inverse of the tax capacity in terms of the General Budget Laws of the State.

2. In no case, the financing of any municipality, determined in accordance with the provisions of this Section, may be lower than that resulting, in gross terms, from the final settlement of the participation in State taxes of the year 2003, being understood in the same terms as the last paragraph of the previous article. The application of this rule shall not result in a total amount exceeding that resulting from the provisions of Article 115a of this Law for each financial year.

Article 115 quater. Tourist municipalities.

1. For the purposes of this Article, tourist municipalities shall be considered as tourist municipalities, which, in the subjective field defined in Article 115, also fulfil two conditions:

a) Have a population of more than 20,000 people.

b) That the number of second-residence dwellings exceeds the number of main dwellings, according to the official data of the last Census of Buildings and Housing.

2. The participation of the tourist municipalities in the State taxes will be divided into two parts:

(a) Tax collection of the Tax on Hydrocarbons and on the Labors of Tobacco, in the form set out in the following paragraph.

(b) Participation in State taxes, in the form set out in paragraph 4 below.

3. Each of the tourist municipalities will be given 2.0454 per 100 of the yields that have not been the subject of cession to the Autonomous Communities for the Taxes on Hydrocarbons and on the Labors of Tobacco.

For these purposes, the yield shall be understood as yield on the basis of the liquid collection attributable to each municipality for the taxes on hydrocarbons and on the Labors of Tobacco which have not been transferred to the Communities. Stand-alone.

The bases or yields on which the percentage will be applied, as well as the scope and specific conditions of the transfer, shall be determined in accordance with the provisions of Article 112b (2) and Article 113b, respectively. The tourist municipalities shall be subject to the provisions of Article 112a (3).

4. Once the distribution of the participation in the State taxes in the form laid down in Article 115 (1) is effected, the individual participation of each tourist municipality shall be reduced by the amount resulting from the development, with the Index defined in Article 115a (2), the amount of the disposal of the tax collection on Hydrocarbons and on the Tobacco Labours calculated in the base year 2004 for that municipality.

The participation in State taxes, reduced in the form described in the previous paragraph, will be increased by the calculated amount of the cession of the tax collection on Hydrocarbons and on the Labors of the Tobacco corresponding to the year in question.

SECTION 3.A REVISION OF THE MODEL DESCRIBED IN THIS CHAPTER Article 116. Review.

On a four-year basis, the set of municipalities to be included in each of the models regulated in the previous two sections will be reviewed, taking into account compliance at the time of the review of the requirements. established for the delimitation of the subjective areas covered by Articles 114 and 115. '

Article forty-second. Surcharges from the provinces.

Article 124 (2) of Law 39/1988 of 28 December 1988 on the Regulatory of Local Haciendas is amended to read as follows:

" 2. Such a surcharge will be required for the same taxable persons and in the same cases covered by the tax rules and will consist of a single percentage which will fall on the municipal quotas modified by the application of the the weighting provided for in Article 87 of this Law and its rate may not exceed 40 per 100. '

Article forty-third. Participation of the provinces in state taxes.

New wording is given to Chapter III of Title III, which will be worded as follows:

" TITLE III

Province resources

CHAPTER III A)

Disposal of State Tax Collection

SECTION 1.A SCOPE AND GENERAL CONDITIONS OF DISPOSAL

Article 125. Subjective scope.

With the scope and conditions laid down in this chapter, the proportion established in Article 125a of this Law is given the yield obtained by the State in the taxes related thereto, in favour of the the provinces as well as the Autonomous Communities of the Autonomous Communities which, at the entry into force of this Law, have not integrated their participation in State taxes as an entity analogous to the provinces in which they are entitled to the institutional nature of the Autonomous Community.

Article 125a. Purpose of the assignment.

1. For each of the provinces and entities treated as such, the following percentages of yields which have not been transferred to the Autonomous Communities, obtained from taxes, shall be given to each of the provinces and entities concerned State that are cited:

a) The 0.9936 per 100 of the liquid income tax share of the Physical Persons.

b) 1.0538 per 100 of the liquid collection for the Value Added Tax attributable to each province or entity assimilated.

c) 1,2044 per 100 of the liquid collection attributable to each province or entity assimilated by the Excise on the Beer, on the Wine and Fermented Drinks, on Intermediate Products, on Alcohol and Drinks Derivatives, on Hydrocarbons and on Tobacco Labors.

2. The bases or yields on which the above percentages shall be applied shall be determined in accordance with Article 112b for the municipalities and the provinces shall be given the reference to the references made to them by the municipalities.

3. In any event, the provinces and entities in the same way may not assume, in any event, regulatory powers, management, liquidation, collection and inspection of taxes which are given to them, nor in the case of revision of the acts in question. the management of such taxes, the ownership and exercise of which is exclusively the State's responsibility.

SECTION 2.A SCOPE AND SPECIFIC CONDITIONS OF DISPOSAL

Article 125 ter. Scope of the assignment and connection points in the Income Tax of the Physical Persons.

1. Each of the provinces and similar entities included in the subjective area of Article 125 is transferred to 0,9936 per 100 of the yield not transferred to the Autonomous Communities of the Income Tax of the Physical Persons produced in its territory, as defined in Article 112b (1) of this Law. The statements made in this last article to the municipalities shall be construed as references to the provinces and entities assimilated.

2. The yield on the yield of the Income Tax of the Physical Persons corresponding to those taxable persons who have their habitual residence in the province is considered to be produced in the territory of a province or entity.

3. As regards the general rule of determination of the habitual residence of natural persons, presumptions and rules applicable in specific cases, the provisions of Article 113 (3) to (8) of this Law shall apply.

The references that these paragraphs include to the municipalities shall be understood to be made to the provinces and entities assimilated.

Article 125c. Scope of the assignment and connection point in the Value Added Tax.

1. Each of the provinces and entities treated in the same way as in the subjective area of Article 125 is given a yield of 1,0538 per 100 of the yield not granted to the Autonomous Communities of the Value Added Tax which is charged against the territory.

2. This allocation shall be determined by the application of the territorial consumption index of the Autonomous Community to which each province belongs and which is treated as a liquid collection corresponding to the State, in accordance with the terms of paragraph 2 of the Article 112 ter of this Law, weighting the result by the representativeness, in the field of the respective Autonomous Community, of the population of law of the province and entity assimilated, in the following terms:

PIVAt p = 0.010538 ^ RLIVAt ^ ICT i ^ (Pt p/Pt i)

Representing:

The term PIVAt p the amount of the Value Added Tax yield given to the province p in the year t.

The term RLIVAt is the collection of the tax on the Value Added Tax corresponding to the State in the year t, which has not been the object of cession to the Autonomous Communities.

The term ICT i the index of territorial consumption certified by the Instituto Nacional de Estadística and elaborated for the purpose of the allocation of the value added tax by Autonomous Communities, determined for the Community Autonomous i to which the province belongs p, for year t.

3. The terms Pt p and Pt i the right populations of the province p and the Autonomous Community, respectively, according to the update of the municipal register of inhabitants in force at 31 December of the year t.

Article 125 quinquies. Scope of the assignment and connection point in the Special Taxes on Manufacturing.

1. Each of the provinces and similar entities included in the subjective area of Article 125 is hereby given to the Autonomous Communities of the Beer, Wine and Fermented Beverages, which are not ceded to the Autonomous Communities of the Taxes on Beer. on Intermediate Products, on Alcohol and Derived Beverages, on Hydrocarbons and on Tobacco Labors that are imputed on their territory.

2. With regard to the Excise on Beer, on Fermented Wine and Drinks, on Intermediate Products and on Alcohol and Beverages Derived, this imputation shall be determined by the application of the Community's index of territorial consumption Autonomous to which each province belongs to the liquid collection corresponding to the State, in the terms of Article 112b (2) of this Law, for each of the Special Taxes cited, weighting the result by the representativeness, in the field of the respective Autonomous Community, of the population of law of the province. The calculation method will be determined by the following formulation:

PIIEE (h) t p = 0,012044 ^ RL IIEE (h) t ^ ICT i (h) ^ ^ (Pt p/Pt i)

Representing:

The term PIIEE (h) t p the amount of yield ceded by Special Tax h to the province p in the year t. Corresponding to the taxes referred to in this paragraph.

The term RL IIEE (h) t the liquid collection by the Special Tax h corresponding to the State in the year t, which has not been the object of cession to the Autonomous Communities.

The term ICT i (h) the index of territorial consumption, certified by the National Institute of Statistics, of the Autonomous Community I to which the province belongs p, for the year t, and elaborated for the purposes of the allocation of the Special Tax h by Autonomous Communities.

The terms Pt p and Pt i the right populations of the province p and the Autonomous Community, respectively, according to the update of the municipal register of inhabitants in force at 31 December of the year t.

3. The yield on the yield from the hydrocarbon tax corresponding to the rate of deliveries of gasolines, gasoils and fuel oils in that territory shall be deemed to be produced in the territory of a province or equivalent, according to the Ministry of Economy, weighted by the corresponding tax rates.

In addition, the yield on the yield of the Tobacco Labors Tax corresponding to the sales rate for tobacco durations in that territory shall be deemed to be produced in the territory of a province or entity. according to data from the Commissioner for the Market in Tabacos, weighted by the corresponding tax rates.

CHAPTER III.B)

Participation of the provinces in state taxes

SECTION 1.A PARTICIPATION IN THE SUPPLEMENTARY FUND

Article 126. Subjective scope.

Participate in the model regulated in this section of the provinces, as well as the Autonomous Autonomous Communities, which, at the entry into force of this Law, would not have integrated their participation in state taxes such as an entity analogous to the provinces in which it may correspond according to its institutional nature as an Autonomous Community, to which reference has been made in Article 125 of this Law.

Article 126 bis. General rule for determining participation in the Supplementary Financing Fund.

The participation in the Supplementary Financing Fund will be determined, for each financial year and for each province, applying an index of evolution to the participation that corresponds to it, for this concept, in the base year of the new model, in the same terms established for the municipalities in Article 114 bis of this Law.

For these purposes, the first application of this model, that is, the year 2004, shall be understood as the base year.

Article 126 ter. Rule for determining participation in the Supplementary Financing Fund for the base year.

1. The participation in the Supplementary Financing Fund for the base year shall be calculated by deducting the amount resulting from the participation block defined in the previous paragraph of the total participation resulting from the increase of the participation in State taxes of the year 2003 in the rate of evolution established for the municipalities, all in the same terms as in Article 114 (1) of this Law.

2. The participation in taxes of the State of the year 2003 shall be understood in gross terms, including, in relation to each of the entities referred to in this Section, all the elements and considering the particularities of the referred to in paragraphs 4 and 6 of Article 66 of the General State Budget Law for 2003.

Article 126 c. Index of evolution.

The rate of evolution will be determined, in any case, by the increase in the tax revenues of the State (ITE) between the year to which the participation corresponds and the base year, in identical terms to those defined for the municipalities, in Article 114 c of this Law.

SECTION 2.A FUNDING FOR HEALTHCARE

Article 126 quinque. Funding of healthcare.

1. The General Budget of the State shall include a credit to cover the allocations to the entities referred to in Article 126 above for the maintenance of their non-psychiatric healthcare facilities.

2. These amounts shall be determined for each financial year and for each entity applying the rate of evolution defined in Article 126 c of this Act to the financing which, for this purpose, corresponds to them in the base year.

3. The participation of the specified entities, corresponding to the base year, will be determined by increasing the participation in taxes of the State that is in its favor in 2003 by this same concept, determined according to the provisions of Article 66 (3) of Law 52/2002 of 30 December 2002 on the General Budget of the State for 2003.

SECTION 3.A PARTICIPATION OF OTHER PROVINCES AND SIMILAR ENTITIES

Article 127. Subjective scope.

They will participate in State taxes according to the model described in this section by entities not included in Article 125 of this Law.

Article 127a. Determination of the amount of participation.

1. The participation of each of the entities referred to in the preceding article, for each financial year, shall be determined by applying an evolution rate to that corresponding to the base year.

For these purposes, the rate of evolution shall be determined by the increase in the tax revenue of the State between the year to which the participation corresponds and the base year, in the terms of Article 114 this Act.

2. The participation of the specified entities, corresponding to the base year, will be determined by increasing the participation in taxes of the State that corresponds to them in 2003 in terms of unconditional financing, calculated in accordance with paragraphs 4, 5 and 7 of Article 66 of Law 52/2002 of 30 December 2002 on the General Budget of the State for 2003. '

Article 44th. Special provisions in relation to local Canary Islands entities.

Chapter II of Title V of Law 39/1988 of 28 December, Regulatory of Local Government, is worded as follows:

" CHAPTER II

Canary Islands

Article 139.

Local banks will have the resources regulated in this Law without prejudice to the specific features of the legislation of the Canary Islands ' economic and fiscal regime.

In particular, to the municipalities of the Canary Islands referred to in Article 112 of this Law, as well as to the Island Cabildos, only the percentage corresponding to the Income Tax of the Natural persons and Special Taxes on Beer, on Intermediate Products and on Alcohol and Derived Beverages, and consequently these amounts are the only ones to be deducted for the purposes of the provisions of Articles 114 ter and 126 ter of this Law. "

Additional disposition first. Tax effort.

The taxable bases of the Real Estate Tax to be considered in the calculation of the tax effort, for the purpose of distributing the financing by percentage of participation in the taxes of the State in favor of the Councils, shall correspond to the amount of the cadastral values which have been reduced in the amount of the reduction laid down in this Law, which, where appropriate, corresponds to the buildings of the municipality in each financial year.

Additional provision second. References in the Tax on Economic Activities.

All the statutory references to the coefficient and the situation index regulated by the previous wording of Articles 88 and 89 of Law 39/1988 of 28 December 1988 on the Regulatory of Local Government (a) shall be construed as applying to the coefficient referred to in Article 88 of that Law 39/1988, in the wording given to it by this Law.

Additional provision third. Tax benefits.

For the purposes of this Law, the provisions of the first paragraph of Article 9 (2) of Law 39/1988, of December 28, Regulatory of Local Haciendas, shall not apply.

The provisions of the previous paragraph will not extend to those alleged tax benefits in relation to which the current regulations do provide for the realization of economic compensations by the Status.

Additional provision fourth. Rates and Instruction of the Tax on Economic Activities.

The rates for the Instruction of the Tax on Economic Activities, approved by the Royal Legislative Decree 1175/1990 of 28 September, and the Royal Decree of Law 1259/1991, of 2 August, will continue to apply, without prejudice to paragraphs (b) and (c) of paragraph 1 of the repeal of this Act, with the following amendments:

(a) In those cases in which the tariff quota provided for in Royal Decree 1175/1990 is determined, among others, by the tax element "number of workers", as a fixed amount to satisfy for each worker, the portion of the quota corresponding to that tax element shall not apply.

(b) Group 069 of the first section of the rates approved by Royal Decree 1175/1990, which is drawn up in the following terms, is amended:

" Group 069. Other livestock holdings.

Fee of 66.95 euros.

Note: this group comprises the livestock holdings not specified in this division, such as sericulture, breeding of animals for fur, breeding of captive game, breeding of laboratory animals, snails, etc. "

(c) Group 761 of the first section of the rates approved by the Royal Legislative Decree 1175/1990 is amended, which shall be worded as follows:

" Group 761. Telephone services.

Heading 761.1. Fixed telephony service.

Fee:

Municipal minimum quota of:

For every 1,000 subscribers or fraction: 62.20 euros.

Provincial quota of:

For every 1,000 subscribers or fraction: 137.48 euros.

National quota of:

For every 1,000 subscribers or fraction: 137.48 euros.

Heading 761.2. Mobile telephony service.

National quota of:

For every 1,000 subscribers or fraction: 632.11 euros.

For each antenna: 649.16 euros.

Notes:

1.a) For the purpose of calculating the number of subscribers, all customers of each mobile operator shall be considered.

2.a) Mobile telephony antenna, the set of radio equipment and systems (including the necessary infrastructure elements for their support and accommodation), members of a mobile telephone system, shall be understood in each one of its modalities, which allows the subscribers of that service to access the operator's network and the services supported by it. For this purpose, mobile telephone antennas with apparent radiated power exceeding 10 watts shall be considered to be exclusively. '

(d) The title and note of group 912 of the first section of the rates approved by the Royal Legislative Decree 1175/1990 are amended as follows:

" Group 912. Forest services and services related to fisheries and aquaculture.

Note: this group includes forest services provided by persons or entities other than the holders of the holdings and which are normally carried out on the same holding, such as pest control, defence fire, etc., as well as services related to fisheries and aquaculture provided by persons or entities other than holdings of holdings. '

e) Group 913, "Services related to fisheries and aquaculture", is deleted from the first section of the rates approved by the Royal Legislative Decree 1175/1990.

(f) For the purposes of determining the "area of the premises" tax element, not only shall not be computed, but shall be specifically deducted from the area corresponding to the elements directly affected by the activity taxed:

The area for child care or childcare of the taxable person's staff or clients.

The surface for sociocultural activities of the taxable person's staff.

The provisions of this paragraph shall also apply for the purposes of determining those quotas for which the duties of the tax expressly take into account, as a tax element, the area of the premises, -computed in square meters, in which the corresponding activities are carried out.

The area to be deducted pursuant to this letter may not exceed 10 per 100 of the computable surface corresponding to the elements directly affected by the taxed activity.

(g) Any taxable persons whose status in respect of the Economic Activities Tax is affected by the changes laid down in paragraphs (c), (d) and (e) above shall submit the corresponding statement in the terms provided for in Articles 5, 6 or 7, as the case may be, of Royal Decree 243/1995 of 17 February 1995 laying down rules for the management of the tax on economic activities and regulating the delegation of powers in the field of census management of such tax.

(h) Paragraph 3 of Rule 17.a of the Economic Activities Tax Instruction, approved by Royal Legislative Decree 1175/1990 of 28 September 1990, shall be amended as follows:

" Three. Levy and distribution of national quotas.

1. The levy of national quotas shall be carried out by the Provincial Delegation of the State Agency for Tax Administration in whose territory the taxable person is domiciled.

2. The amount of national quotas shall be distributed among all the municipalities and the Provincial Diputations of common territory in the following terms:

A) Out of this amount, excluding the amount corresponding to the mobile telephone services, 80 per 100 shall be the responsibility of the municipalities and the remaining 20 per 100 to the Provincial Diputations.

B) 20 per 100 of the collection referred to in the preceding paragraph shall be distributed among the Provincial Diputations according to the following criteria:

(a) A third party to the population of the province's law, understood as the sum of the population of law of all the municipalities integrated in the provincial demarcation, according to the definition referred to in the (a) point (B) of the preceding paragraph 2.

(b) A third party on the basis of the number of taxable persons per municipal quota resulting from the sum of all those found in the registration plates of the municipalities of the province concerned for the year in question.

(c) A third party on the basis of the total amount of the municipal tariff quotas entered in the plates of the municipalities of the province concerned for the year in question.

Consequently, the amount which, if any, is to be applied, is not to be taken into account in the application of the provincial coefficient or surcharge, which are regulated respectively in Articles 88 and 124 of Law 39/1988 of 28 December 1988. Local Farms.

C) 80 per 100 of the collection referred to in point (A) above of this paragraph shall be distributed among the municipalities according to the same criteria and terms as those laid down in paragraphs (a), (b) and (c) of the Letter B) of the previous dos.2 of this rule.

(D) The fees for mobile telephony services shall be distributed according to the following criteria:

(a) 20 per 100 of the collection shall be distributed among the Provincial Diputations according to the following criteria:

The share of the national share corresponding to the element of the masts, depending on the number of these with apparent power exceeding 10 watts (PAR T 10 w) installed in the municipalities integrated in each demarcation provincial and have the corresponding municipal license.

The share of the national share corresponding to the tax element paid, according to the population of the province's law, is understood as the sum of the population of law of all the municipalities integrated in the (a) provincial demarcation, in accordance with the definition referred to in subparagraph (a) of point (b) of the preceding paragraph 2.

(b) The remaining 80 per 100 shall be distributed among the municipalities according to the following criteria:

The share of the national share corresponding to the element of the masts, depending on the number of those with an apparent radiated power exceeding 10 watts (PAR T 10 w) installed in the respective municipal terms and counting with the corresponding municipal license.

The share of the national share corresponding to the tax element paid, according to the population of law of the municipality, is understood in the terms set out in Rule 14.1.D) of this Instruction.

E) The distribution of quotas referred to in this paragraph shall be carried out by agreement of the Director-General of Community Funds and Territorial Financing of the Ministry of Finance, within the time limits and terms provided for in the letter (c) of the previous section 2. 2 of this rule. "

(i) Paragraphs 6 and 7 of Rule 17.a of the Economic Activities Tax Instruction, adopted by Royal Legislative Decree 1175/1990 of 28 September 1990, shall be amended as follows: terms:

" Six. The basis of the provincial quota distribution agreements.

The quota distribution agreements to be adopted by the provincial delegates of the State Tax Administration Agency, in accordance with the provisions of point (C) of paragraph 2 of this Rule, shall be based on the information to be provided by the Ministry of Finance's Directorate-General for Community Funds and Territorial Financing.

Seven. Execution of the quota distribution agreements.

The distribution agreements for provincial and national quotas, as referred to in paragraphs 2 and 2 of this Rule, once adopted within the time limits laid down in those provisions, shall be implemented by the Directorate-General for Community Funds and Territorial Financing. "

Additional provision fifth. Amendment of Law 21/2001 of 27 December 2001 regulating the fiscal and administrative measures of the new system of financing of the Autonomous Communities of the common system and cities with a Statute of Autonomy in respect of ITE national.

Article 15 (3) of Law 21/2001 of 27 December 2001 regulating the tax and administrative measures of the new system for the financing of the Autonomous Communities of the common system and cities with a Statute of Autonomy, it is worded as follows:

" 3. To these effects, the national ITE (ITEn) is constituted by the state collection, excluding the susceptible of cession to the Autonomous Communities, by IRPF, VAT and the Excise of Manufacture on the Beer, on the Wine and Drinks Fermentadas, on Intermediate Products, on Alcohol and Derived Beverages, on Hydrocarbons and on Tobacco Labors.

On the other hand, the regional ITE (ITEr) is constituted by the collection in the territory of the Autonomous Community, without exercise of normative competences, by IRPF, VAT and the Excise of Manufacture on the Beer, on Fermented Wine and Drinks, on Intermediate Products, on Alcohol and Derived Beverages, on Hydrocarbons and on Tobacco Labors, ceded and susceptible to cession. "

Additional provision sixth. Chambers of Commerce, Industry and Navigation.

The following amendments are introduced in Law 3/1993, of March 22, Basic of the Official Chambers of Commerce, Industry and Navigation:

1. Article 12 (1) (a) is read as follows:

" (a) A levy of 2 per 100 which will be required for the payment of the Cameral Resource which are subject to and not exempt from the Economic Activities Tax and which will be rotated on each of the municipal, provincial or national of this tax that those must satisfy.

The Autonomous Communities with regulatory competence in this field may raise the appropriate chamber referred to in this paragraph until the latter reaches 9 per 100 of the base set out in the preceding paragraph. The collection resulting from this increase shall be attributed exclusively to the chambers of the respective Autonomous Community in the form that it determines.

Except as provided for in the following paragraph, the minimum standard quota to be paid by this levy shall be EUR 60 for each national, provincial and municipal quota of the Tax on the Economic activities to which they are required. This amount shall be updated annually in accordance with the consumer price index.

When a company is required to pay 26 or more fees for this levy from the Cameral Resource to the same chamber, the amount to be settled for each of the minimum quotas shall be that resulting from the application of the following scale:

Number

minimum

quotas

10

Amount by each quota minimum - Euros
1 to 25
From 26 to 100	30
More than 101	10

The amounts fixed for each tranche shall be applied to the number of quotas included in the tranche, irrespective of the amount to be paid by the quotas for the other tranches. "

2. Article 14 (2) is worded as follows:

" 2. The liquidations of the permanent actions referred to in paragraphs (a), (b) and (c) of Article 12 (1) of this Law shall be notified by the entities entrusted with their management within the financial year following that of the entry or presentation of the corresponding tax return and those required for payment must be made in the form and time limits laid down for the tax settlements which are the subject of individual notification.

After the voluntary payment period, the collection of unpaid fees will be processed in accordance with the award procedure. "

3. Article 15 (b) and (c) shall be worded as follows:

" (b) The remaining portion of the dues relating to the Company Tax and the Income of the Physical Persons shall be distributed among the Chambers in whose demarcation there are establishments, delegations or agencies of the natural or legal person in accordance with the criteria to be established, by Order of the Ministry of Economic Affairs, on a proposal from the Chamber of the Superior Council of Chambers, but the portion corresponding to the Chamber of the registered office of the social entrepreneur or individual may not be less than 30 per 100 of the total quota of the concept of the field of use permanent in question.

(c) The proceeds of the levy on the tax on economic activities shall be entered, within the maximum period of one month from the date on which they are collected, in an exchange for the allocation to each of the chambers according to the percentage representing the number of persons, natural and legal, engaged in commercial, industrial or shipping activities and having their registered office in each of the territorial constituencies of each chamber in respect of the total number of persons carrying out these activities. The plenary of the Council of Chambers shall adopt the rules of operation of this fund. "

4. Article 16 (3) is worded as follows:

" The Autonomous Communities with jurisdiction in the matter may, in whole or in part, affect the performance of the functions of the administrative public nature of the chambers, the collection of the concept of the Resource Permanent chamber rotated on the quotas of the Economic Activities Tax, which proceeds from the elevation of the corresponding aliquots, above the general rate. "

5. Article 17 (1) is worded as follows:

" 1. The tax authorities shall be obliged to provide the Superior Council and the Official Chambers of Commerce, at their request, with the necessary tax information necessary for the management of the levies in the Permanent Cameral Resource.

This information may only be used for the purpose provided for in the preceding paragraph and shall only be accessible to the employees of each corporation determined by the Plenary.

Likewise, the tax administrations are obliged to submit to the chambers and to their Superior Council the data for the Economic Activities Tax of the constituents of each chamber that are necessary for the preparation of the of the census accessible to the public referred to in Article 2 (1) and Article 18 (2) (d) of this Law.

This staff will have, with reference to the data indicated, the same duty of secrecy as the officials of the tax administration. Failure to comply with this duty will, in any event, constitute a very serious infringement. "

Additional provision seventh. Local Canary Islands.

The participation in the taxes of the State of the local Canary Islands regulated in Chapter II of this Law will be determined in accordance with its peculiar economic and fiscal regime.

Additional disposition octave. Temporary application in the Tax on Economic Activities of the Potestative Allowances and the exemption provided for in Article 83.1 (b) of Law 39/1988, of December 28, Regulatory of Local Farms.

1. The potential bonuses provided for in the Economic Activities Tax in Law 39/1988 of 28 December 1988 on the Local Government will apply from 1 January 2004.

2. Without prejudice to the provisions of the seventh transitional provision of this Law, the exemption provided for in Article 83 (1) (b) of Law No 39/88 of 28 December 1988 on the Regulation of Local Authorities shall apply only to the taxable persons who initiate the exercise of their business as from 1 January 2003.

If the activity had been initiated in the 2002 tax period, the weighting coefficient applicable in 2003 will be the least of those provided for in the table set out in Article 87 of Law 39/88 of 28 December 1988. December, Regulatory of Local Haciendas.

Additional provision ninth. Special regime of Ceuta and Melilla.

Article 140 (3) of the Local Government Law Regulatory Law is amended, which will be worded as follows:

" 3. The participation of Ceuta and Melilla in the State taxes will be determined by applying the rules contained in Section 2.a of Chapter III B) of Title II of this Law with regard to the municipalities. For these purposes, the tax effort referred to in Article 115 (1) (b) of this Law shall be calculated by taking into account the total shares of the municipal taxes determined before the allowance provided for in paragraph 1 is applied. previous. This participation shall also be determined by applying the rules set out in Section 3.a of Chapter III (B) of Title III of this Law with regard to the provinces. "

Additional provision 10th. Compensation in favour of local entities for loss of income arising from the reform of the Economic Activities Tax.

1. In order to preserve the principle of financial sufficiency of local entities and to provide cover for the possible loss of income that they may experience as a result of the reform of the Tax on Activities Economic, the State will compensate the Local Entities for the loss of collection of this tax in the year of its entry into force.

2. The compensable loss will be the expression of the difference between the liquid collection of the year 2003 and the liquid collection of the year 2000, with the collection of the collection of both the current and the closed exercises. For the calculation of the liquid collection the following adjustments shall be made:

In liquid collection, the derivative of the modifications included in tax ordinances that have entered into force after 1 January 1999 affecting the regulated coefficients, indices and surcharges shall not be included. in Articles 88, 89 and 124 of Law 39/1998 of 28 December 1998 on the Regulatory of Local Authorities, in the wording preceding the entry into force of this Law, or establishing, in accordance with the provisions of that Article 88 according to the the wording of Article 25 of this Law, a coefficient lower than that resulting from multiplying, in each case, the coefficient and the index in force before 1 January 1999 to be replaced.

Also, the liquid collection of the year 2003 will not include the derivative of the distribution of the national quota set under the heading 761.2 "Mobile phone service" for the additional provision fourth " Rates and Instruction of the Tax on Economic Activities " of this Law.

3. The amount of such compensation, which is mined in the liquid collection under the heading 761.2 'Mobile telephony service', according to the distribution of the national quota to be made between the local authorities, shall be consolidated in the model for the participation of the the same in State taxes as defined in Articles 39 and 40 of this Law, according to the following rules:

Those local entities to which a percentage of the performance of certain state taxes are given will be increased by their participation in the Supplementary Financing Fund for the year 2004, as defined in Articles 114 bis and 126 bis of Law 39/1998, of 28 December, Regulatory of Local Government, according to the wording given by Articles 39 and 40 of this Law, in the amount of the compensation to be recognized to each entity.

The total participation in the base year of the municipalities to which a percentage of the yield of certain state taxes is not given, as defined in Article 115 bis of Law 39/1998 of 28 December, Regulation No Local estates, in accordance with the wording of Article 39 of this Law, shall be increased by the amount of the sum of the compensation.

to be recognized in these municipalities. In accordance with the conditions of Article 115 b, in no case shall the financing of each municipality in the future be lower than that resulting, in gross terms, from the final liquidation of the year 2003 increased by the compensation to be recognized for the application of this additional disposition.

4. Advances will be made in the last quarter of 2003 for the foreseeable recovery. The Ministry of Finance shall calculate these amounts on the basis of the year 2000's tax registration and an advance of the year 2003, considering the taxpayers eligible to be declared exempt, the coefficients, indices and charges applicable to the minimum fees for the tax rate and the adjustments referred to in paragraph 2 of this additional provision.

5. During the year 2004, the Ministry of Finance, on the basis of the amounts certified by the local financial controller or, where appropriate, by the competent authority responsible for collecting this tax, adjusted according to the criteria of the Paragraph 2 of this Additional Disposition, shall calculate the amount of the final compensation of each local entity and shall carry out the settlement of the advances on account.

For these purposes, the Ministry of Finance may set deadlines for the reference of the information required for the calculation of the deliveries to account and for the final settlement. Local entities that do not meet this deadline shall be deemed to waive the payment of the advance on account or of the compensation itself.

6. The General Budget Law of the State for the year 2004 will determine the cancellation procedure, with the participation of the local authorities in the State Taxation, of the debtor balances resulting from the liquidation of the deliveries to account.

7. The Ministry of Finance, through the Directorate-General of Community Funds and Territorial Financing, may carry out the necessary actions and checks for the management and payment of these compensations, and may issue the instructions. (a) the effect and the fixing of standard procedures for the transmission of tax and budgetary information relating to the tax on economic activities.

Additional provision eleventh. Amendment of Law 19/1991 of 6 June of the Tax on Heritage.

With effect from 1 January 2003, paragraph two of Article 4 (8) of Law 19/1991, of 6 June, of the Tax on Heritage is amended, which shall be worded as follows:

" Two. Holdings in institutions, with or without listing on organised markets, provided that the following conditions are met:

(a) That the entity does not have the principal activity of managing a property or property. It is understood that an entity does not manage a property or property and that it therefore carries out a business activity when, by application of the provisions of Article 75 of Law 43/1995 of 27 December 1995, the tax on Companies, that entity does not meet the conditions to consider that more than half of its asset is constituted by securities or is a mere holding of assets.

b) That, when the entity reviews the corporate form, the assumptions set out in Article 75 of Law 43/1995, of December 27, of the Company Tax are not met.

(c) that the share of the taxable person in the capital of the institution is at least 5 per 100, computed individually, or 20 per 100 jointly with his or her spouse, ascendants, descendants or second-degree collateral; the parentage in the consanguinity, in the affinity or in the adoption, has its origin.

(d) The taxable person effectively exercises management functions in the institution, thereby perceiving a remuneration representing more than 50 per 100 of all business, professional and labour income personnel.

For the purposes of the above calculation, the business, professional and personal income returns shall not be calculated as the income of the business activity referred to in paragraph 1 of this paragraph.

Where the participation in the institution is joint with some or some of the persons referred to in the preceding point, the management functions and the remuneration derived therefrom shall be at least one of the following: of the persons in the parentage group, without prejudice to the right of all parties to the exemption.

The exemption will only reach the value of the units, determined in accordance with the rules set out in Article 16.1 of this Law, in the part corresponding to the ratio existing among the assets required for the exercise of business or professional activity, which is based on the amount of the debts arising therefrom, and the value of the entity's net worth. '

Additional disposition twelfth. Amendment of fiscal aspects of the Canary Islands ' Fiscal Economic Regime.

The number 2 of article 67 of Law 20/1991, of 7 June, of Amendment of the Fiscal Aspects of the Fiscal Economic Regime of the Canary Islands, will be amended, which will be worded as follows:

" For the purposes of the Arbitrio on Imports and Deliveries of Goods in the Canary Islands, the following is understood:

1.o Delivery of goods, the transmission of the power of disposal on movable property.

Body furniture is considered to be gas, electricity, heat and other forms of energy. They do not have the condition of the supply of goods for the execution of works that are intended to construct or rehabilitate movable property.

2.o Businessman, the person or entity who habitually performs business activities. It is business activities that involve the own account of material or human factors of production, or of one of them, in order to intervene in the production or distribution of goods or services. Commercial companies shall in any case be deemed to be business owners.

3.o Business production of goods, the carrying out of extractive, agricultural, livestock, forestry, fishing, industrial and other similar activities.

4.Import, the permanent or temporary entry of the movable property in the territorial area of the Canary Islands, whatever their origin, the purpose for which they are intended or the condition of the importer.

Without prejudice to the previous number, import is also considered:

(a) The authorisation for consumption in the Canary Islands of the goods which are regulated in any of the special schemes referred to in Article 10 of this Law, as well as in areas and warehouses francs. The taxable amount of goods shall also be produced in the case of non-compliance with the requirements laid down for the granting of the schemes referred to in the preceding paragraph.

(b) Disaffectation of the objects incorporated in the vessels and aircraft referred to in Article 71 (2) and (4) of this Law, where the production of such objects has been exempt from the Arbitration in accordance with the provided in numbers 3 and 5 of the same article.

(c) acquisitions made in the Canary Islands of goods whose previous production or import would have benefited from exemptions relating to diplomatic, consular or international bodies. The provisions of subparagraphs (b) and (c) above shall not apply after 15 years after the import or production of the exempted goods referred to in those letters has been carried out. "

First transient disposition. Taxation of real estate of special characteristics.

The real estate of special characteristics which, at the entry into force of this Law, are registered in the Real Estate Registry in accordance with its previous nature, will maintain until 31 December 2005 the reduction in the tax base that they have in accordance with the previous rules, and the tax rates of the Real Estate Tax provided for these goods in this Law will apply to them. The remaining property of special characteristics will start to be taxed in the Property Tax on one of January of the year immediately after that of its registration in the Real Estate.

Second transient disposition. The liquidable base of the rustic real estate.

What is established in this Law regarding the fixing of the liquidable basis of the Property Tax is suspended in respect of the rustic real estate until the date of its law is established by law application.

Transitional provision third. Tax benefits on the Real Estate Tax.

1. The tax benefits in the Real Estate Tax recognised at the entry into force of this Law, the alleged enjoyment of which are collected therein, shall be maintained without, in the event that they are of a rogated nature, request. Until the date of their extinction, those tax benefits recognised in that tax whose alleged enjoyment are not covered by this Law, with the exception of the exemption provided for in Article 64 (k) of the Law, shall be maintained until the date of their extinction. Regulatory of Local Government, in its wording prior to this Law, which is extinguished upon its entry into force.

2. The municipalities that at the entry into force of this Law came applying the bonus established in article 74.5 of the Law 39/1988, of December 28, Regulatory of the Local Government, in the wording that provided the Law 14/2000, of 29 December, of fiscal, administrative and social order measures, may continue to apply such a bonus to the date determined by the respective tax ordinance.

3. Until such time as the cadastral values determined by the application of the Ponences of total or special values approved in accordance with the provisions of the regulatory norms of the Real Estate, the second, third, fourth, fifth and sixth articles of Law 53/1997 of 27 November 1997, which partially amend Law No 39/1988 of 28 December on the Regulatory of Local Government, and which provides for a reduction in the in the tax base of the Property Tax, as well as Article 69.3 of the aforementioned Law Regulatory of Local Haciendas, in its wording prior to this Law, in respect of the rustic, urban and special properties located in municipalities where the reduction was applied.

Transitional disposition fourth. Procedures in processing.

The procedures initiated prior to the entry into force of this Law shall not apply to them, and shall be governed by the above rules.

Transient disposition fifth. Tax ordinances and time limits for the approval of the tax rate on the Real Estate Tax and on the Ponences of Securities, the notification of cadastral values and the delivery of the cadastral Padrones.

1. With exclusive effects for the financial year 2003, the Councils which decide to apply, in use of their regulatory capacity, the amendments laid down in this Law in the periodic tax levies on 1 January of that year shall approve the final text of the new tax systems and publish them in the Official Gazette concerned, all in accordance with the provisions of Article 17 of Law 39/1988 of 28 December 1988 on the Regulatory of Local Government of 2003.

In the case that for the Real Estate Tax no use is made of the authorization contained in the preceding paragraph, the rate applicable to the real estate of special characteristics will be the for urban real estate.

2. With exclusive effect for the financial year 2003, the general period laid down in this Law to approve the rates of tax on immovable property is extended until 31 October 2003 in those municipalities affected by the tax. collective valuation procedures to be carried out on 1 January 2004. The corresponding agreements will be transferred to the General Directorate of the Catastro within that period.

Also, and in relation to the indicated municipalities, the deadline for the publication of the stock papers is extended until 31 October 2003 and until 1 March 2004 the deadline for the individual notification of the resulting cadastral values, without prejudice to their effectiveness in the year 2004.

In these municipalities the delivery of the corresponding cadastral Padron may be deferred until 1 May 2004.

Transitional disposition sixth. Determination of the liquidable property tax base.

During the financial years 2003 and 2004, the determination of the liquidable basis of the Real Estate Tax, attributed to the Ayuntamas in Article 78 (3) of Law 39/1988, of 28 December, Regulatory of the Local estates will be carried out by the General Directorate of the Catastro, unless the City Council informs the management center that the indicated competition will be exercised by the latter. This communication must be made before the end of the month of February for each of the indicated years.

Transitional disposition seventh. Bonuses for the start of activity in the Tax on Economic Activities.

In relation to the taxable persons of the Tax on Economic Activities in respect of which, at the entry into force of this Law, not being exempt from the payment of the tax according to the provisions in the same, they were by applying the premiums in the above-mentioned starting-up quota in the common note 2 to the first section and in common note 1.a to the second section of the rates approved by the Royal Decree No 1175/1990 of 28 May 1990. September, the said bonuses will continue to be applied, in the terms set out in the abovementioned notes common, until the end of the corresponding bonus application period.

Transient disposition octave. Exemptions in the Tax on Mechanical Traction Vehicles derived from article 94 of Law 39/1988, of 28 December, in its previous wording.

The vehicles that prior to the entry into force of this Law, being exempt from the Tax on Vehicles of Mechanical Traction by application of the previous wording of article 94.1 (d) of Law 39/1988, of 28 of December, Regulatory of Local Government, do not meet the requirements set for exemption in the new wording given by this Law to this precept, will continue to be entitled to the application of the exemption provided in the previous wording of the As long as the vehicle maintains the requirements laid down therein for such an exemption.

transient disposition ninth. Chambers of Commerce, Industry and Navigation.

The payment of the Cameral Resource which is subject and not exempt from the Tax on Economic Activities shall be settled, in the financial year 2003, the levy of paragraph 1 (a) of Article 12 of Law 3/1993, of 22 March, referred to in the sixth provision of this Law, on the basis of the Tax on Economic Activities accrued in the previous year corresponding to the tariff quota without including the surface element.

Those who are obliged to pay the Facility that are exempt from the said tax will not be required to pay the fees for this levy which were due in 2002 in accordance with the previous regulations.

The amendments introduced by this Law in the first paragraph of Article 12 (1) of Law 3/1993, of March 22, will not affect the right of the Chambers to continue to require, in accordance with the legislation previously in force, the unprescribed quotas for this levy, which have been liquidated or which had to be settled on the Economic Activities Tax quotas for the years 2001 and before.

Transient disposition tenth. Tax rates of the Real Estate Tax.

As long as the new regulatory norms regarding cadastral valuation are not approved, the differentiation of tax rates for uses in the Real Estate Tax provided for in this Law will be carried out on the basis of the set out in the table of coefficients of the value of the buildings set out in Standard 20 of the Annex to Royal Decree 1020/1993 of 25 June 1993 laying down the technical valuation standards and the framework table for land and land values constructions to determine the cadastral value of the real estate of urban nature, having for the following specialties:

1. Where the buildings are assigned several uses, the rules for the identification of the use of the main building or dependency shall be as follows:

(a) buildings not subject to the horizontal property regime that are integrated by several buildings or dependencies shall be assigned residential use when the sum of the surfaces of this use represents at least 20 100 of the total area constructed of the building, once it has been discounted for parking spaces; in another case, the use of the largest area shall be allocated, as well as the use for parking spaces. In the latter case, if several uses are matched with the same surface, the following prevalence order shall be observed:

residential, offices, commercial, entertainment, entertainment and hospitality, industrial, storage-parking, health and charity, sports, cultural and religious and singular building.

(b) In buildings subject to horizontal ownership, where several private elements form part of a single immovable property, the principal dependency shall be that for residential use. If none of them have such use, the prevalence referred to in subparagraph (a) shall be observed.

2. The following rules shall be followed for the identification of the use of buildings or dependencies that have the consideration of immovable property:

(a) Garages and storerooms that are located in residential buildings, as well as buildings intended exclusively for garages and parking lots, shall be assigned the storage-parking use.

b) Music bars, party halls, discos, cinemas, theatres, restaurants, bars and cafes located in commercial premises in buildings for other uses, as well as commercial premises in structure, will have assigned the commercial use.

c) "Camping" shall be allocated for leisure and hospitality.

d) Golf courses will be assigned to sport use.

e) Ssilos and deposits for solids, liquids and gases shall be assigned industrial use.

f) monumental and environmental buildings or buildings shall be classified in the use corresponding to the activity in which they are developed.

g) Urbanization works and gardening works will not be considered, for these purposes, constructions.

Transient disposition eleventh. Notifications.

With exclusive effects for the year 2003, alterations that experience the determining elements of the periodic collection tax debts by receipt, as a consequence of the modifications introduced by this Law or by the tax ordinances, they shall be notified collectively by edict, their individual notification not being necessary.

Transient Disposition twelfth. Census management and inspection of the Economic Activities Tax.

1. The entities which, in accordance with Article 22 of Royal Decree 243/1995, of 17 February, for which rules for the management of the Tax on Economic Activities are dictated and the delegation of powers in matters of census management of that tax, be able to request the delegation of powers in terms of censal management and that they wish to assume such competence in 2003, they must adopt the appropriate agreement and submit the corresponding application to the Department of Management Tax Office of the State Administration of Tax Administration before 15 April 2003.

The application must be submitted even in cases where the entity has assumed the jurisdiction cited in 2002, in other cases, it being understood that, with effect from 1 July 2003, the exercise by delegation of the said competence. Institutions may request the delegation of the census management even if they have not taken over the inspection of the tax by delegation in previous years, provided that the delegation of the inspection is also requested for 2003.

The Order of the Minister of Finance to grant the delegation of the census management for 2003 will be published in the "Official State Gazette" before 1 July 2003. As long as the order is not published, the census management of the tax will continue to be exercised by the entity that effectively exercised that jurisdiction in 2002.

2. The delegation of the inspection for 2003 will be requested within the time limit set in the previous section to the Department of Financial and Tax Inspection of the State Administration of Tax Administration, without in this case it is necessary to present a new application where the competition was already exercised by delegation in 2002. The same period shall apply if the exercise of the competition by delegation in 2003 is to be waived.

The Order of the Minister of Finance to grant the delegation of the inspection will be published in the "Official State Gazette" before 1 July 2003.

Single repeal provision. Regulatory repeal.

1. As of the date of entry into force of this Law, the following rules are repealed:

(a) Additional second and fourth provisions and second transitional provisions, paragraphs 2, 3, 4 and 5, and eleventh, as regards the application of the Property Tax Act, of Law 39/1988 of 28 December 1988, Regulatory for Local Haciendas.

(b) Common Note 2 (a) to the first section of the rates of the Tax on Economic Activities, approved by Royal Legislative Decree 1175/1990 of 28 September 1990, for which the rates and the Instruction of the Tax are approved on Economic Activities.

(c) Common note 1.a to the second section of the rates of the Tax on Economic Activities, approved by the Royal Legislative Decree 1175/1990 of 28 September, approving the tariffs and the Instruction of the Tax on Economic Activities.

Likewise, any other rules are repealed, contradicted or inconsistent with the provisions of this Law.

2. The provisions of paragraph (a) of the above paragraph are without prejudice to the provisions of the transitional provisions of this Law.

Final disposition first. Development of the Law.

1. The Government is empowered to dictate how many provisions are necessary for the development and implementation of this Act.

2. In particular, the Government is empowered to dictate how many provisions are necessary for the development and implementation of the tariffs and the Instruction of the Tax on Economic Activities.

3. The Minister of Finance is empowered to approve the communication models for the purposes of the application of the exemption in the tax on economic activities determined on the basis of the net amount of the turnover of the taxable person and the application of the weighting coefficient of the same, as well as to determine the time limits and the manner of presentation of the communications and the assumptions in which such presentation is not necessary.

Final disposition second. Entry into force.

1. This Law shall enter into force on 1 January 2003.

2. The financing model for the local authorities described in the 41st and 43rd articles of this Law shall enter into force on 1 January 2004 and shall be the subject of annual development by the General Budget Laws. of the State, in accordance with the guidelines set out in this Law.

Therefore, I command all Spaniards, individuals and authorities, to keep and keep this Law.

Madrid, December 27, 2002.

JOHN CARLOS R.

The President of the Government,

JOSÉ MARÍA AZNAR LÓPEZ