Original article: «Son el sustento del Fondo Común Municipal»: Alcalde de Renca pide al Gobierno escuchar a los municipios antes de eliminar las contribuciones

Renca Mayor Urges Government to Consult Municipalities Before Scrapping Contributions Law

Claudio Castro Salas, the mayor of Renca, has called on President Kast’s Government and Congress not to proceed with eliminating property contributions «without consulting municipalities,» responding to the President’s comments at the Archi forum regarding the issue.

«We are moving forward with what we promised: no property contributions for the primary residence of senior citizens. This is a clear indication that we are concerned about the most vulnerable group, which are the elderly who are paying contributions, almost like a rent, for a home they have already bought,» Kast stated.

In light of this, Mayor Castro urged the Government and Congress to «not move forward with eliminating contributions without listening to municipalities,» reminding that these contributions «are the lifeblood of the Municipal Common Fund and public services throughout Chile.»

«Deciding without dialogue directly harms our neighbors,» the Renca mayor added, reaffirming the concerns many mayors across the country have regarding this measure announced by Kast.

Meanwhile, in La Moneda, there are hopes that the elimination of contributions for the primary residence of senior citizens will be approved by Congress in the first half of 2026, so it can take effect in the second half of that year.

Most Homes in Chile Are Exempt from Contributions

During his presidential campaign, Kast had already announced his intentions to end the territorial tax (property contributions) for primary residences, immediately raising alarms about the complex scenario this measure could create for municipalities, especially those with lower incomes.

This topic was thoroughly addressed in a column by Verónica Aravena Vega published in El Ciudadano, which points out that the majority of homes in Chile already do not pay contributions.

«Less than 25% of residential properties are subject to this tax, meaning only about 1.3 million homes out of more than 8 million. Those that do pay are concentrated in high-value municipalities: Providencia, Las Condes, Vitacura, Ñuñoa, Lo Barnechea, and certain neighborhoods in Viña del Mar, La Serena, or Puerto Varas,» the column by Verónica Aravena highlights.

The columnist then questions: who is Kast really ‘freeing’ with this measure? «Property owners who are already among the highest tiers of urban wealth. Not the woman in the alley who is still paying off her mortgage, nor the relative living with their family in a 60-square-meter house. The project is cloaked in social justice, but its fabric is privilege.«

The column, published in November 2025 just days before the presidential election, warns that the territorial tax «is not a whim: it is the main redistributive tool between municipalities that the Chilean State possesses.»

«Of the over 2.5 trillion pesos collected annually from contributions, nearly 60% goes directly to the Municipal Common Fund (FCM). This fund—though imperfect—allows a portion of the money collected in wealthier municipalities to finance services in poorer municipalities,» the author adds.

Read the full column below:

Why José Antonio Kast’s Promise is a Bombshell Against Territorial Justice

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