Playa del Carmen Mayor Defends Property Tax Proposal Amid Business Backlash

Playa del Carmen, Quintana Roo — Facing intense public debate over proposed increases to property tax assessments, Mayor Estefanía Mercado has sought to clarify the intent of her administration’s reforms. In a video message released on social media, she stated that the aim is not a blanket tax hike, but rather a long-overdue correction of deep-rooted inequalities in Playa del Carmen’s cadastral system.

“An Inherited Injustice”

Mayor Mercado pointed to stark disparities in current valuations. “A luxury beachfront hotel pays just 50 pesos per square meter, while a modest home in Villas del Sol pays up to 1,200 pesos,” she said. “This is a historic injustice.” According to the mayor, the new valuation tables are designed to bring fairness to the system by aligning tax contributions with actual property value and usage.

She assured residents that the updated assessments would not affect affordable housing or working-class neighborhoods—and, in some cases, values could even decrease. The reforms, she emphasized, are primarily aimed at large hotels and high-value commercial properties that have long paid disproportionately low rates.

“With this measure, we achieve fiscal justice and secure resources to improve services and infrastructure for all Playa del Carmen residents,” Mercado said, referencing road maintenance, trash collection, and public safety as areas that could benefit from the additional revenue.

Business Groups Push Back

Despite the reassurances, the proposal has drawn sharp criticism from business leaders who say the increases are excessive and poorly justified. The Mexican Caribbean Hotel Association (Asociación de Hoteles de la Riviera Maya) issued a public statement warning that the new cadastral values could raise hotel tax burdens by up to 600%, severely affecting profitability and deterring future investment. The association has called for a technical roundtable to analyze the methodology used and assess the broader impact on the local economy.

The Quintana Roo chapter of CANIRAC, the national restaurant chamber, also voiced concern. In an open letter, they argued that the hospitality and restaurant sectors—already struggling to recover from pandemic losses—would be disproportionately affected by steep tax hikes. The group stressed that the reforms, if implemented without input from affected stakeholders, could lead to business closures and job losses.

Business leaders have also raised alarm over the timing and transparency of the process. Many claimed they were not properly consulted and questioned how the new unit values were calculated. Some described the increase as arbitrary and warned it could erode Playa del Carmen’s competitiveness compared to other beach destinations in Mexico.

Public Consultation Ongoing

Mayor Mercado insisted that the process remains in the public consultation phase and encouraged all sectors to participate constructively. No implementation date has been announced.

The reform comes amid broader efforts by the Mercado administration to reshape Playa del Carmen’s growth trajectory. Other initiatives include crackdowns on illegal development, protection of green areas, and infrastructure upgrades—all underpinned by a push for a more equitable tax base.

With tensions mounting, the property tax issue is set to remain a central topic in Playa del Carmen’s political and economic discourse through the end of the year. The outcome could shape not only the city’s budget but also its relationships with the private sector and residents alike.