Overview
- The Supreme Court, which voted 6–1 on Thursday, granted ISSSTE a legal reprieve that halts collection and sends the case back to a collegiate court to recalculate the debt.
- Ministers held that ISSSTE’s facilities are federal public-domain assets used for health services, so Mexico City cannot levy property tax on them under Article 122 of the Constitution.
- The Court said the city may only charge payroll tax for employees who work within Mexico City and it did not extend any exemption to fees for water supply rights.
- The ruling came on a project by Minister Lenia Batres, sister of ISSSTE’s director, after the Court’s president asked her to delay the vote, one minister recused over prior involvement, and Minister María Estela Ríos dissented on timeliness grounds.
- City officials had sought time to negotiate as the claim equaled more than 20% of projected 2026 property-tax revenue, and the outcome could pressure local finances and set guidance in federal–local tax fights that have produced mixed results in past cases.