The Budget Law opens up the amnesty of local debts. Discounts on penalties and interest, but not for everyone: each municipality decides whether to join. Who can benefit from it and how much you save
Imu and Tari not paid, kindergarten fees forgotten, traffic fines ended up in the drawer. Something new arrives with the Budget Law: the scrapping of municipal records. A measure that supports the scrapping of state documents, but which follows different and patchy rules, not everywhere and with the same timescales.
IMU, TARI and unpaid fines: scrapping yes, but only if the Municipality adheres
The first thing to clarify is that the scrapping of municipal records is not automatic. The Budget Law has opened the door to a facilitated definition also for taxes and revenues of local authorities, but the final decision is up to each Municipality. Each administration can choose whether to activate it or not, for which revenues, for which years and with which operating methods. This means that two taxpayers with the same debt, but residing in different municipalities, could find themselves in opposite situations: one with the possibility of scrapping it, the other not. The first step, therefore, is always to check whether your municipality has approved the regulation.
Which municipal records can be scrapped
Generally speaking, scrapping can concern the period of time which runs from 1 January 2000 to 31 December 2023. This perimeter may include not only the notices and injunctions already notified, but also pending matters still under investigation or even the subject of litigation. Be careful though: each Municipality can narrow the field, limiting scrapping only to certain years or specific types of income. This is why reading the municipal regulations is essential. Another key point concerns the person who collects. Municipal scrapping applies only to debts still in the hands of the Municipality or entrusted to private collection dealers. Debts already transferred to the Revenue-Collection Agency instead follow the rules of state amnesties and do not fall into this category.
Imu, Tari, fines and other debts: what really falls under the scrapping of Local Authorities
There are many types of debt that can be included. On the front of local taxes we talk about Imu and Tari, but also about taxes no longer in force today such as Ici, Tasi or Tarsu, if they refer to the periods allowed by the Municipality. Then there are the property income: school or kindergarten canteen fees, rent for public housing, cemetery fees, driveway fees, urbanization charges, fees for the water service. Finally, the traffic fines. Those issued by the municipal police can be included in the municipal scrapping, while those issued by the Prefecture instead follow the state quinquies scrapping.
How much you save with municipal scrapping
The real advantage of the facilitated definition lies in discount on penalties and interest. In practice, the taxpayer only pays the original amount of the tax or fine. The items that increase the debt over the years are cancelled. The notification costs remain due and, if already started, those for the executive or precautionary procedures. If payment is made in installments, legal interest may be applied, often increased by two percentage points.
Sums already paid in the past as penalties or interest are not refunded: the discount applies only to the residual debt.
How to find out if your municipality has joined the scrapping scheme
All answers are online. In fact, the law provides that the regulation on the scrapping of municipal records becomes effective only after the publication on the institutional website of the Municipality. The resolutions are also published on the portal of the Ministry of Economy and Finance. Without an approved and published resolution, scrapping does not exist and the taxpayer cannot claim any relief. If the local authority chooses not to join, there is no room for manoeuvre: the debt must be paid in full, including penalties and interest, and the Municipality continues with the normal forced collection activities. There are no alternative shortcuts.
How to submit the scrapping application to the Municipality
Once the regulation has been approved, the Municipality must make the forms available within 15 days. From that moment the deadline for submitting the application begins, which cannot be less than 60 days. In the request, the taxpayer indicates the debts he intends to scrap and, if applicable, the number of installments desired. The institution’s response will arrive within approximately 15 days with the list of definable sums; subsequently the amount to be paid and the deadline schedule are communicated. Payment can be made in a single solution or in installments, as established by the municipal regulation. In many cases there are up to 12 or 20 installments, depending on the total amount. But be careful: failure to pay, even for just one instalment, or late payment beyond the five-day grace period will invalidate the scrapping. The amount already paid remains acquired by the Municipality as an advance on the overall debt.
