Threat to private property owners in CDMX: New tax reform

Attention to what is happening in CDMX, as a reform to the fiscal code of Mexico City raises alarms.

The reform to Article 132 of the Fiscal Code of Mexico City for the year 2025 represents a new threat to private property.

With the reform, the authority demands that owners report on their properties even though there are still no clear rules. It is not known what will be done with that information.

The drafting of this reform has caused legal uncertainty and concern among property owners in the capital.

The modification obliges property owners with a cadastral value exceeding 4 million 527 thousand pesos to submit an informational declaration on "the condition they are in" of the properties.

But it has not been defined what the order "the condition they are in" implies. For this reason, the reform has been criticized for its ambiguity and lack of clarity.

What worries property owners in CDMX the most

Property owners have doubts such as the lack of definition and clarity. That is, the reform doesn't specify what is meant by "the condition they are in" of the properties.

This is what leaves property owners without a clear guide on what information they must provide to the authorities.

There is also no official format, as the CDMX Finance Secretariat has not issued how this declaration should be submitted.

This only causes confusion and the possibility of misinterpretations.

The measure is also selective, as not everyone has this obligation. It only applies to properties with a cadastral value exceeding 4 million 527 thousand pesos.

This also raises questions about the equity of the provision, and there is even a possibility that it is a selective revenue measure.

What are the consequences of the reform against private property?

In the absence of rules, property owners point out that there is a risk of discretion. It means that, due to the ambiguity of the reform, a judge will be able to interpret the law in an 'arbitrary' manner.

The lack of clarity in the drafting of the reform could allow the fiscal authority to discretionarily interpret what it deems appropriate. This opens the door to arbitrary inspections and possible abuses.

There is also concern that this measure is the first step toward an increase in property tax or, perhaps, toward the establishment of new contributions for improvements and adjustments in homes.