On August 19, 2021, an Unconstitutionality Action was filed regarding articles 1675, 1682 and 1689 of the Código Municipal para el Distrito Metropolitano de Quito, statute that defines he extent of power exercised by the public authorities of Quito and other municipal matters, for contravening articles 226 and 301 of the Constitution. These articles of the Municipal Code establish that the toll rates for the north central access (Guayasamin tunnel), the Pintag-El Volcán road and the road leading to Lloa, will be set by the Metropolitan Mayor.
The claimers state that the articles of the Municipal Code enable a body other than the sole and exclusive body provided for in the applicable legal regime (Metropolitan Council) to establish the amount-rate of a tax (toll rate) and, consequently, they allege that the articles of the Municipal Code violate Articles 226 and 301 of the Constitution.
The Constitutional Court, in judgment number 61-21-IN/23, ruled that it is not possible to establish the rate or the way to establish it through an administrative resolution, even if that resolution it is issued by the mayor. Since it is an essential element of the taxation, the rate or the way to establish it must be found in an ordinance approved by the Metropolitan Council.
In other words, it is incompatible with the principle of legality in tax matters established in Article 301 of the Constitution for the Mayor of the Municipality to set the rates by means of an administrative resolution and not through an ordinance approved by the Metropolitan Council.
The declaration of unconstitutionality will take effect in six months from the date of notification of the judgment, that is, June 4, 2024.
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This publication contains information of general interest and does not constitute legal opinion on specific issues. Any analysis will require legal advice from the Firm.
