Increase in Property Tax: How Much More Will Superbonus 110% Users Pay?

“`html

Increase in Catastrophic Income for Properties Benefiting from Superbonus

Recently, the news has emerged that the cadastral income for properties that have benefited from the Superbonus and other construction bonuses is set to increase.
This announcement by the Minister of Economy, Giancarlo Giorgetti, has created quite a stir.
However, it’s important to note that this isn’t a new policy.
The Minister has merely reiterated a rule included in the 2024 Budget Law, which is not always adhered to.

The Unified Text of Construction requires that, at the end of any renovation, a proof must be filed with the Municipality indicating either the presentation of a cadastral variation or a declaration stating that no changes have been made to the classification of the property.
This must be done within 30 days after the completion of the works.

Mandatory Cadastre Income Adjustment: Who Is Affected?

It’s acknowledged that the required adjustments are often overlooked.
It should be clarified that the obligation to update the cadastral income exists in specific circumstances: when the number of rooms increases; when work increases the volume of the property; and when enhancements elevate the property’s value by at least 15%—a criterion often met due to thermal insulating interventions linked to the Superbonus.

Despite this, some property owners do not comply with these regulations.
The 2024 Budget Law permits the Revenue Agency to verify whether property owners who have benefited from Superbonus have submitted the necessary cadastral variations.
If breached, owners could receive a compliance letter indicating the irregularity.

Expected Increases in Cadastral Income

The adjustments in cadastral income due to the Superbonus may lead to increases ranging from 16% to 18% for jumping just one class.
In cases involving a two-class leap, the rise could exceed 30%.

For a property with an initial cadastral income of €400, for example, it could increase to:

• €464 to €472 if it moves up by one class (an increase of 16% to 18%)
• €520 to €544 if it jumps two classes (30% to 36% increase)

Impact of Cadastral Income Increase on Primary Residences

The effects of increased cadastral values vary significantly between primary residences and second homes.
For primary homes, no IMU is charged unless classified as luxury.
Still, adjustments will affect ISEE and IRPEF calculations.

The primary home’s income tax applies a 105% multiplier to the cadastre value, contributing to total income which is, in turn, neutralized by a deduction equal to the cadastral income of the main dwelling and its annexes.
However, luxury homes fall under IMU contributions and do not influence total IRPEF income.

When considering ISEE impacts, homes valued below €52,500 remain unaffected, with increments of €2,500 for each additional living child.
Homes above this threshold influence ISEE on a two-thirds basis of the exceeding value, complicating financial dynamics for many families.

Secondary Residences: More Significant Consequences

For second homes, increased cadastrals carry more weight as they are subject to IMU, which relies on these values.
Unless rented, these properties may also incur IRPEF on 50% of the cadastral income raised by one-third.

To illustrate, a second home with a cadastral value of €800 might incur an Irpef of €533 without adjustments.
However, with an increase of 18% or 36%, the Irpef would rise to approximately €629.33 and €725, respectively.

Negative Effects of Cadastral Income Increases

The consequences of rising cadastrals extend beyond IMU, IRPEF, and ISEE; the latter influences eligibility for various bonuses and assistance programs.
An uptick in ISEE could diminish entitlement to income supports or family aids, notably affecting benefits such as the universal allowance, where increments in ISEE lead to lower financial aid allocations.

In summary, while the intention behind these regulations is to reflect property enhancements, the financial impact on homeowners could be significant, requiring careful management and compliance from those utilizing renovation bonuses.

“`