Do you know how IPTU collection works?

The beginning of the year comes with taxes. Find out all about the IPTU (Urban Property and Land Tax) charged on your home or commercial property.

The time has come when city governments start charging the famous IPTU, Tax on urban and territorial property. The tax is collected annually by most Brazilian municipalities on urban properties and plays a crucial role in raising resources for essential services for the population and urban development.

A The expiry date of the IPTU can be set freely by each municipality. Therefore, it is important that taxpayers follow the portal of the corresponding municipality to avoid missing the deadlines.

“In practice, most municipalities charge the tax at the beginning of the year, giving the taxpayer the option of paying in cash or in installments. The amount is calculated based on the market value of the property, defined by the municipality itself, and may or may not correspond to the market value of the asset, although the most common thing is that the arbitrated amount is not up to date,” explains tax lawyer Moema Debs.

In general, municipal governments offer two payment methods for taxpayers: single payment, which has the advantage of a discount; or payment in installments, according to the previously published calendar. Additionally, some locations provide special discounts for retirees, retirees, people with disabilities and other specific categories.

“Municipalities have discretion in regulating the IPTU and, although this is not the case in all, the the intended use of the property can influence its market value assigned to him and the rate used to calculate the tax to be collected. As a rule, commercial IPTU ends up being higher than residential. Furthermore, it is important to point out that many municipalities offer exemptions or reduced rates for properties with low market value, sparsely built-up areas or, in some cases, using solar energy or other sustainable technologies. These benefits are used to relieve low-income homeowners and encourage the adoption of green and sustainable practices,” he adds.

When deemed necessary, the taxpayer can request a review of the IPTU, if you understand that the market value attributed to the property is far from ideal. “To do this he needs the support of specialized professionals, such as lawyers, engineers, architects or real estate agents, who will prepare a dispute to the market value, based on technical and marketing assessments. The taxpayer can also request a review if he understands that does not exist satisfy the requirements for the collection of the progressive IPTU, applied to the owners of numerous unoccupied properties and large unused areas in the Urban Area”.

OR The IPTU value may undergo annual adjustments, often linked to changes in inflation. It is important for taxpayers to be aware of these updates to prepare financially. According to Moema, the tax reform has made the way in which municipalities update the IPTU calculation base more flexible.

«Before, the update depended on the law and, therefore, on the approval of the City Council. Now the update can be carried out by the Executive Council itself, as long as it respects the criteria established by municipal law. The consequences of this for taxpayers is that the market value of properties will be increasingly closer to market values, generating, in some cases, an increase in the tax to be paid”.

Understanding the IPTU is essential for citizens to be able to consciously fulfill their tax obligations and contribute to the sustainable development of their communities.

“Delay in collecting taxes entails a fine of up to 20% of the amount due, plus interest and correction. The defaulting owner can have the debt assumed in protest, his name registered in a credit protection register and suffer the enforcement of taxes for collection, with fines, interest, monetary correction and other legal fees. Additionally, you may have money in your account or financial investments blocked, other assets, such as vehicles, seized, and even have the property auctioned off to pay the debt. This reinforces the fact that, if the taxpayer is interested in questioning the amount charged, he must seek a specialized lawyer as soon as possible, since there is also a deadline for contesting”, concludes the lawyer.

Source: Terra

Ben

Ben Stock is a lifestyle journalist and author at Gossipify. He writes about topics such as health, wellness, travel, food and home decor. He provides practical advice and inspiration to improve well-being, keeps readers up to date with latest lifestyle news and trends, known for his engaging writing style, in-depth analysis and unique perspectives.