November 16th, 2012 (InsideCostaRica.com) The increase in the fiscal value of vehicles that the General Taxation Department (“Tributacion”) applied, and which has increased the cost of “Marchamo” (annual vehicle tax) on close to 1.2 million vehicles, violates citizen rights, according to the group, Consumers of Costa Rica.
The increase was applied after “Tributacion” conducted market research, with the purpose of updating the reference values used to calculate the property tax on vehicles, which constitutes the largest portion of the cost of “Marchamo.”
According to the tax administration, the reference values were outdated.
However, the president of Consumers of Costa Rica, Eric Ulate, stated that there is no information on how the study was conducted or what it was based on, nor were citizens notified in advance of the recalculations.
Law 7088 states in section 9: “if the taxation administration does not publish on January of each year, in La Gaceta, a list with the values of vehicles, the tax will be paid based upon the price base from the prior year.”
The Property Tax on Vehicles is composed of three variables: inflation, tax rate, and depreciation. According to the National Insurance Institute (INS), 75% of what is paid in the “Marchamo” goes to the Ministry of “Hacienda” (Tax Ministry). Though the Marchamo is paid to INS, it says that any challenge regarding the value adjustment to a vehicle would need to be directed to Hacienda.
In order to file a challenge, a vehicle owner must provide the vehicle registration, title, four studies that reflect the real cost of the vehicle in the market, a letter from the owner of the vehicle requesting a revision and six photographs of the vehicle.
Motorcyclists will also be marching towards the Inhabitants Rights department this morning, in order to protest the increase in the 2013 “Marchamo” and fiscal value adjustments for motorcycles.
Motorcyclists are particularly upset about the latest increases, some claiming the Marchamo payment is worth as much as, or more than the motorcycle itself.