A very recent decision of the Dominican Supreme Court (Sept. 10, 2008) states that municipalities cannot create new taxes unless they have been approved by the National Development Council ("Consejo Nacional de Desarrollo") and the Executive, pursuant to Art. 85 of the Constitution and Law #180 of 1966.
Apparently, the new taxes enacted in Cabarete did not go through this procedure and therefore should be null and void. For more details and the full text of the decision, go to
Noticias
Disclosure: My firm Guzm?n Ariza may be involved in the suit to void the new taxes.