Published on June 16, 2026
Through Opinion No. 21721 dated March 11, 2026, the Fiscal Support Directorate of the Ministry of Finance and Public Credit (DAF) responded to a consultation submitted by the Department of Finance of the Municipality of Chinácota (Norte de Santander) regarding the legal limits applicable to increases in the Unified Property Tax (IPU). The opinion clarifies the scope of the applicable regulations and establishes an order of precedence for their application.
Limit established under Article 6 of Law 44 of 1990 (general limit). Once the cadastral formation process has been completed in accordance with Law 14 of 1983, the resulting Unified Property Tax may not exceed twice the amount assessed in the immediately preceding year. The DAF clarifies that this restriction applies regardless of the reason for the increase in the cadastral valuation, including cadastral conservation procedures. Excluded from this limit are properties incorporated into the cadastre for the first time, developable land that has not been urbanized or has been urbanized but remains undeveloped, and lots on which a new building has been constructed.
Limits established under Article 2 of Law 1995 of 2019 (special limits). This provision establishes three differentiated limits depending on the cadastral status of the property: (i) the Consumer Price Index (CPI) plus eight percentage points for properties that have undergone a cadastral update and have paid property tax based on such update; (ii) a maximum increase of 50% over the amount assessed in the previous year year for properties with outdated cadastral information; and (iii) the CPI for residential properties classified in socioeconomic strata 1 and 2 with a cadastral valuation of up to 135 Monthly Legal Minimum Wages (SMMLV). The DAF clarifies that, since Article 1 of the same law expressly refers to cadastral conservation procedures, these limits apply to all cadastral modalities, including cadastral formation, updating, and conservation.
Order of precedence between the two regulations. Municipal administrations must first determine whether a property falls within any of the three limits established by Law 1995 of 2019. Only when none of the limits set forth in that law applies—either because the property does not meet the required conditions or because it is expressly excluded under the sole paragraph of Article 2—may the administration apply the limit established in Article 6 of Law 44 of 1990, while also respecting the exclusions provided therein.
Reassessment of prior tax years Regarding the possibility of correcting prior assessments that may have disregarded the applicable legal limits, the DAF distinguishes between two scenarios. If the tax administration has determined the tax through a final administrative act constituting an enforceable title, revocation would only be possible with the taxpayer’s prior, express, and written consent (Article 97 of the Code of Administrative Procedure and Administrative Litigation – CPACA). If such consent is not obtained, the administration would be required to challenge the act before the administrative courts and request its provisional suspension. Conversely, if the taxpayer has requested a correction during the course of the administrative dispute process, the administration is authorized to review and adjust the assessment.
It is important to note that opinions issued by the DAF are advisory in nature and are not binding upon territorial administrations or taxpayers, pursuant to Articles 14-2 and 28 of the CPACA. Nevertheless, they constitute a relevant interpretative guideline that may support appeals, petitions, and administrative proceedings concerning property tax matters.
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