23
May 2002
Euskadi
FIVE-YEAR QUOTA ACT 2002-2006
Chapter
I
Legal regime and validity of the method
Article 1.
Legal regime and validity of the method
The
quotas for the Basque Country for the fiscal years 2002 to 2006
inclusive will be determined by the method regulated by the following
articles. This method adheres to the regulatory scheme laid down
in Section 2, Chapter II of the Economic Agreement with the Autonomous
Community of the Basque Country approved by Law XX/2002.
Article
2. System
For
the purposes of the provisions of the previous article, the net
quota for the base year of the five year period shall be determined.
This figure shall be updated for the subsequent years.
Chapter II
Determination of the net quota for the base year
Article 3. Determination
of the net quota for the base year
The
net quota for the base year of the five year period from 2002
to 2006 shall be determined by applying the attribution rate to
the total amount of the charges not assumed by the Autonomous
Community and by making the relevant adjustments and compensations,
all as provided for in the terms of the following articles.
Article
4. Charges of the State not assumed by the Autonomous Community
One.
Charges of the State not assumed by the Autonomous Community are
those which correspond to competences which have not been actually
assumed by the latter.
Two.
To determine the total amount of said charges, the entire State
Budget allocation corresponding to the competences assumed by
the Autonomous Community as of the entry into effect of the transfers
established in the corresponding Royal Decrees shall be deducted
from the total State Budget expenditures.
Three.
Among others, the following shall be considered charges not assumed
by the Autonomous Community:
a)
The sums allocated in the General State Budget to the Inter-territorial
Compensation Fund.
b)
Transfers or subsidies granted by the State to public entities,
provided that the competences exercised thereby have not been
assumed by the Autonomous Community of the Basque Country.
c)
The interest payments and repayments of principal on all State
debts.
Four.
Attribution to the different Historical Territories of their share
of non-assumed charges shall be made by applying the attribution
rate referred to in Article 7 herebelow.
Article
5. Adjustments
One.
Without prejudice to the provisions of Articles 14 and 15 herebelow,
the figures resulting from the attribution referred to in point
four of the preceding article shall be adjusted to improve the
accuracy of the estimated income from direct tax attributable
to the Basque Country and to the rest of the State pursuant to
article 55 of the Economic Agreement.
Two.
The amounts resulting from application of the adjustment regulated
by point one above shall constitute the quota for each Historical
Territory.
Article
6. Compensations
One.
From the quota corresponding to each Historical Territory the
following items shall be subtracted for compensation purposes:
a)
The attributable portion of non-transferred taxes.
b)
The attributable portion of budgetary income not from taxes.
c)
The attributable portion of the deficit figuring in the General
State Budget.
Two.
Also subject to compensation of the quota corresponding to each
Historical Territory is the portion attributable to the Basque
Country for revenues utilised in the financing of Social Security
functions and services related to health and social services devolved
to the Basque Country which prior to the entering in effect of
this Act were paid to the Basque Country by transfers from the
Social Security General Treasury, as provided for in the budgetary
regime laid down in Royal Decrees 1.536/1987 of 6 November, 1.476/1987
of 2 October, 1.946/1996 of 23 August and 558/1998 of 2 April.
Three.
Attribution of the items stipulated in the points above shall
be made by applying the attribution rate referred to in article
7 herebelow.
Article
7. Attribution rate
The
attribution rate referred to in articles 4 and 6 hereabove, set
basically in accordance with the income of the Historical Territories
relative to that of the State, is 6.24 per cent for the current
five year period.
Article
8. Net quota
The
sum resulting from the adjustment performed as per article 5 and
the compensations stipulated in article 6 (One) hereabove shall
constitute the net quota for the Basque Country for tax year 2002,
which is the base year of the five year period.
After
the net quota is determined, the sum of compensations as per in
article 6 (Two) hereabove, and the amount resulting from the application
of the Fourth Transitional Provision of the Economic Agreement
shall be subtracted.
Chapter III
Determination of the Net Quota for the Subsequent Years of the
Five Year Period and Final Settlement of the Quotas
Article 9. Method of determination
The
net quota for the subsequent years after the base year of the
five year period shall be determined provisionally by applying
an updating index to the net quota.
In
the years following the base year compensation shall be performed
according to article 6 (Two) of this Act.
Article
10. Updating index
The
updating index is the quotient between expected revenues from
taxes covered by the Economic Agreement, excluding those that
may be transferred to the Autonomous Communities, as stated in
Chapters I and II of the State Budget for the tax year to which
the net quota refers and the duly adjusted revenues expected by
the State for the same tax items in the base year of the five
year period.
Article
11. Effects of variations in the competences assumed
One.
If during any of the years following the base year of the five
year period the Autonomous Community of the Basque Country assumes
further competences whose annual cost at State level had been
included in the charges of the State used as the basis for determining
the net Quota for the base year of the five year period as per
article 8, said annual cost at State level associated with the
transfer in the year in which the transfer takes place shall be
calculated as deduced from the General State Budget for the year
in question.
Should
the new transfer not take effect on January 1st, the total annual
cost at State level associated with the transfer for the year
in question shall be considered on a prorate basis in proportion
to the portion of the year during which the Basque Country has
enjoyed said competences, with effect exclusively for the determination
of the net Quota for the year in which the transfer takes place.
The
aforesaid proportional reduction shall take into account the actual
periodicity of operating costs, as well as the actual extent to
which the State’s investments have been undertaken.
Two.
If the circumstance indicated in the preceding paragraph arises,
the net quota for the base year of the five year period shall
be reduced by the amount resulting from the application of the
attribution rate regulated by article 7 to the total annual cost
at State level in the year of the transfer divided by the updating
index regulated by article 10.
The
net quota for the base year of the five year period thus revised
shall be used to determine the quota for the year in which the
transfer takes place and for the subsequent years.
Three.
The mechanism described above shall be applied inversely if the
Autonomous Community of the Basque Country ceases to exercise
competences which it had previously assumed.
Chapter
IV
Common Rules
Article 13. Payment of
the quota
The
sum to be paid by the Autonomous Community of the Basque Country
in each tax year shall be paid to the State Revenue Department.
in three equal instalments in the months of May, September and
December of the year in question.
Article
14. Adjustment for value added tax
One.
The following shall be added to the actual revenues of the Basque
Country from value added tax:
a)
6.875 per cent of the value added tax revenues from customs duties.
b)
1.110 per cent of the actual tax revenues of the common territory
divided by 94.235 per cent, or of the actual tax revenues of the
Basque Country divided by 5.765 per cent, according to whether
the percentage of tax revenues of the Basque Country, with respect
to the State total, minus the revenue obtained through customs,
is greater or less, respectively, than 5.765 per cent.
Two.
The provisional attribution of the aforesaid adjustment and the
definitive regularisation thereof in the immediately subsequent
year shall be carried out in accordance with the procedure in
force at the time and approved by the Joint Quota Committee.
Article
15. Adjustment for excise duties
One.
The following shall be added to the actual revenue of the Basque
Country from excise duties on alcohol and alcoholic beverages,
intermediate products, beer, mineral oils and manufactured tobacco:
a)
First. 7.130 per cent of the revenues from duties on alcohol and
alcoholic beverages, and on intermediate products from customs
duties.
Second.
5.198 per cent of the actual revenue from the duty on alcohol
and alcoholic beverages and on intermediate products of the common
territory divided by 98.068 per cent, or the actual revenue of
the Basque Country from the same excise duty divided by 1.932
per cent, according to whether the percentage of revenue of the
Basque Country with respect to the State total, less the amount
from customs duties, is greater or less, respectively, than 1.932
per cent.
b)
First. 7.130 per cent of the revenues from customs duty on beer.
Second.
5.399 per cent of the actual revenue from the excise duty on beer
of the common territory divided by 98.269 per cent, or the actual
revenue of the Basque Country from the same excise duty divided
by 1.731 per cent, according to whether the percentage of revenue
of the Basque Country with respect to the State total, less the
amount from customs duties, is greater or less, respectively,
than 1.731 per cent.
c)
First. 6.560 per cent of the revenues from customs duty on mineral
oils.
Second.
When negative, 1.700 per cent of the actual revenue from the excise
duty on mineral oils of the common territory divided by 91.740
per cent, or the actual revenue of the Basque Country from the
same Excise Duty divided by 8.260 per cent, according to whether
the percentage of revenue of the Basque Country with respect to
the State total, minus the revenue obtained by Customs, is greater
or less, respectively, than 8.260 per cent.
d)
The difference between the result of applying to the common territory’s
actual revenue from the excise duty on manufactured tobacco the
percentage corresponding annually to the value of the products
supplied to the tobacco and stamp outlets located in the Basque
Country with respect to the value of the products supplied to
said establishments in the territory where the excise duty is
applied, and the result of applying a supplement up to a hundred
of the percentage defined above to the actual revenue from the
same excise duty in the Basque Country.
Two.
Should the actual revenue obtained by the Basque Country differ
by more than 7 per cent for the excise duty on mineral oils, or
by more than 10 per cent for the excise duty on alcohol and alcoholic
beverages, intermediate products and beer from the figure resulting
from the application of the rates indicated in the last part of
sub-sections a)2, b)2 and c)2 of point one of this article, to
the actual revenue of the State as a whole for the said items,
those rates shall be corrected to carry out adjustments for the
year in which such differences arise.
This
correction shall be made by applying the percentage of variation,
be it positive or negative, above the limits set in the preceding
paragraph, to the corresponding rates referred to in the last
part of sub-sections a)2, b)2 and c)2 of point one above.
Three.
The provisional attribution of the aforesaid adjustment for each
of the excise duties and the definitive regularisation thereof
in the immediately subsequent year shall be carried out in accordance
with the procedure in force at the time and approved by the Joint
Quota Committee.
First
additional provision
Second
additional provision
The
provisional net quota for the Basque Country for 2002 indicated
in Appendix I to the present document is approved.
Third
additional provision
In
the event of a reform of the State tax legal system affecting
the taxes object of agreement, or an alteration in the distribution
of the regulatory competences affecting the scope of indirect
taxation, or new tax figures or payments on account, both Administrations
shall by mutual agreement, proceed to adapt the net quota for
the base year of the five year period and the updating index in
such a way and to such an amount as may be pertinent. Such adaptations
shall take effect as from the year in which the reform is made.
Both
Administrations shall, as the case may be, make the pertinent
adjustments or compensations, given the nature of the tax figure
object of the agreement.
Fourth
additional provision
In
the event of any modification in the present regime of manufacturing
and trading of tobacco products, both Administrations shall, by
mutual agreement, proceed to revise point d) of article 15, sub-section
One.
Fifth
additional provision
The
cost of the Autonomous Police Force included as an assumed charge
in the quota for the base year 2002 corresponds to the value attributed
to the service for 2002. Accordingly, from the time this Act enters
into force, it shall receive the same treatment as the rest of
the assumed charges.
The
cost for the Autonomous Police Force set forth in Appendix I reflects
the funding corresponding to the number of staff with active service
administrative status pursuant to the deployment agreements adopted
prior to January 1st 2002.
The
Joint Economic Agreement Committee shall agree on the funding
for any increase in the current staff of the Autonomous Police
Force.
Sixth
additional provision
For
the purposes of this Act the agreements adopted by the Joint Quota
Committee referred to in article 49 of the Economic Agreement
approved by Law No. 12 of 13 May 1981 shall be considered adopted
and ratified by the Joint Economic Agreement Committee referred
to in article 61 of the Economic Agreement approved by Act XX/2002
of ____ _____.
Seventh
additional provision
With
effect from the entry into force this Act the financing of Social
Security functions and services related to health and social services
devolved to the Basque Country shall receive the same treatment
as the rest of the assumed charges. Therefore, the budgetary regime
laid down in Royal Decrees 1.536/1987 of 6 November, 1.476/1987
of 2 October, 1.946/1996 of 23 August and 558/1998 of 2 April
shall be understood to be adapted to the stipulations laid down
in the present Act.
First
final provision
Exceptionally,
should the term of this Act elapse without a new law being enacted
to regulate the method for determining the quota for the following
years, the method laid down in this Act shall apply in all its
terms for the provisional determination of the net quotas and
the compensations referred to in article 6 (Two) of this Act and
in the Fourth Transitional Provision of the Economic Agreement
for the year 2007 and subsequent years.
The
quotas and compensations thus determined shall be replaced by
those applicable under the law indicated in the previous paragraph
once it is enacted.
Second
final provision
The
provisions of this document are understood to be without prejudice
to the regulations contained in the additional, transitional and
final provisions of the Economic Agreement with the Basque Country,
which remain in force insofar as they are applicable on their
own terms.
APPENDIX
I
Provisional
Quota for the Autonomous Community of the Basque Country
for
Base Year 2002
(Thousands of euros)
Application of the attribution rate to non
assumed charges:
Compensation and adjustments to be deducted
For taxes not covered by the Economic Agreement
For other non tax income
For budget deficit
For direct taxes covered by the Economic Agreement
-279,643.41
____________
Alava Compensations:
(1) This figure includes an assumed charge on
the State level for the Autonomous Police Force of 6,172,355.79
thousand euros.
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