Municipal Tax

A congressman has proposed reducing the municipal tax on converting land titles from useful-domain to full-domain status from 10% to 3%, saying it would ease real-estate transactions and spur housing, industrial, and urban development, particularly in San Pedro Sula where about 80% of property titles operate under the useful-domain arrangement.

A Libre party congresswoman, Dunia Jiménez, has introduced legislation to permanently halve the Siglo XXI municipal vehicle tax in San Pedro Sula, arguing that rising living costs and multi-vehicle households — where families can pay up to L15,000 (about $600) a year — have overburdened working-class budgets.

Vehicle registration fees in the capital will increase 4.2% to match accumulated inflation, raising the tax from 1,600 lempiras to 1,668 lempiras, with Mayor Juan Diego Zelaya saying the municipal council did not approve a discretionary hike.

Tegucigalpa's mayor announced a 68-lempira (about $2.70) increase in the municipal vehicle tax, attributed to a 4.2% rise in operating costs.

The El Progreso municipal council reversed a roughly 300% vehicle-tax hike after four days of protests by transporters, businesses, and residents, restoring prior rates and offering tax credits to those who already paid the higher amount.

The city council of El Progreso revoked a municipal vehicle-tax increase that sparked protests and roadblocks, and ruled that residents who already paid will receive a credit toward other municipal fees.