Bogotá council passes tax reform with a property surcharge to fund smart street lighting

Bogotá's city council approved Mayor Carlos Fernando Galán's tax reform in its second and final debate on 28 September 2026, sending it to the mayor for sanction. From 2027, a property-tax surcharge funds smart street lighting: 0.4 per thousand of taxable value on homes, and 1 per thousand on commercial, industrial and financial property. Homes in socio-economic strata 1 to 3 are exempt below a value threshold. Business-tax rates fall for 275 activities and rise for 169. Two taxes are abolished: on outdoor advertising, and the unified tax on poor relief, gambling and shows. Debtors who settle before 21 December 2026 get 60 percent off interest and penalties.

The package pairs a levy earmarked for one visible service with lower-strata exemptions and business-tax cuts that could reach more than half of the city's firms. Cities seeking public consent for local tax rises can study it. The open questions are whether the earmark holds as budgets tighten, and whether sector-specific rises push activity to neighbouring municipalities.