Italian towns tighten IMU exemption rules as low utility use reveals tax abuse

Italian municipalities may cancel the IMU exemption on a primary residence when the household's electricity and water consumption falls below the ISTAT average. The rule, grounded in Law 160/2019 and related jurisprudence, allows local tax offices to cross‑check utility data with residency registers and recover unpaid taxes.

A recent UIL study of Molise shows that, although the IMU amount on second homes and luxury first homes in Campobasso and Isernia is among the lowest in the country, the region's high regional IRPEF surcharge and the lowest average wages in Italy combine to create a disproportionate fiscal burden on residents. The analysis calls for structural tax reforms to improve progressivity and address the fiscal fragility of the region.