Mexican homeowners pay an annual real estate tax, known as predial, to their local municipality. This tax is based on the assessed value of the property, which considers factors like location, size, and construction materials. While distinct from property taxes in other countries like the United States, it serves a similar function in funding local government services.
Municipal revenue derived from this tax is crucial for funding essential public services such as infrastructure maintenance, sanitation, public safety, and community development. The tax’s consistent collection ensures the financial stability and operational capacity of local governments to provide these vital services. Its historical context is deeply rooted in Mexico’s system of municipal governance, providing a stable revenue stream for local authorities.
