IPTU is the acronym for Urban Property and Land Tax, which is a Brazilian tax levied on people who own an urban real estate property, such as an apartment, office space, house or other type of property within an urbanized region.
The IPTU is included in the Federal Constitution and serves both legal entities and individuals. The entire IPTU regency is covered by the National Tax Code (CTN), represented by Law No. 5.172, of October 25, 1966.
The main objective of IPTU is basically fiscal, that is, to obtain financial resources for the Government, but it can also be a means to control property prices.
If the property does not have any type of building construction, then the landowners will only have to pay the so-called Urban Land Tax.
People who do not live in the city but on rural properties also pay tax, the ITR, which means rural land tax.
As an "urban region", according to the law, it is understood a locality that offers a set of basic conditions to the inhabitants, such as: water supply, water system. sanitary sewers, public lighting network, primary school and health post at a maximum distance of three kilometers and a pavement with water pipes rainwater.
In some states, usually the smaller ones, IPTU is the main source of funds. The IPTU calculation basis is the value of the property on the tax paid by it, the value in cash and in cash. The rate used to calculate the IPTU is established by the legislator of each municipality, and may vary according to the states.
Some of the factors that influence the calculation to define the IPTU value of a property are: the size of the land, the its location, the size of the built area and the qualification, which consists in the quality of its finishing. construction.
See the meanings of Square meter it's from market value.
The IPTU also has a very important social function, which consists in preventing large properties from being misused by the owners, since, when it is proven that the property is not being properly used, the government can increase the property tax, with the objective of making the owners sell the property, and thus make it productive.
See also: O meaning of property tax.
