The Porto Alegre City Council approved, this Tuesday (30), a complementary bill that grants tax benefits to properties and self-employed professionals affected by the floods, in May of this year. The measure drawn up by the executive branch aims to assist in the financial recovery of citizens and companies affected by the calamity.
The project provides for the remission and granting of offset credits for the Property Tax (IPTU) and the Garbage Collection Tax (TCL), in addition to the remission of the Tax on Services of Any Nature (ISSQN) for self-employed professionals. In practice, the remission works as a pardon.
The definition of affected properties will be made based on the flood area.
Measure highlights
Properties directly affected by water will have all IPTU and TCL installments due between May and December 2024 waived. Properties indirectly affected will have 20% of the value of each installment waived during the same period.
Self-employed professionals established in properties in the flood zone will have ISSQN remission, including interest and fines.
The project allows for a new exemption from the Real Estate Transfer Tax (ITBI) in specific cases of unusability of properties acquired through housing programs.
Amendments were approved that extend the benefits to permit holders of municipal properties and reduce the market value of the affected properties for calculating IPTU.
The estimated impact of the measure is R$176 million. To access the benefits, taxpayers must submit a request by October 31, 2024. A decree will regulate the process of requesting and granting the benefits.
Flood affected almost 12% of the population of Porto Alegre
The historic 2024 flood in Porto Alegre affected more than 150,000 people, according to a survey carried out by the city government of the capital of Rio Grande do Sul. This is equivalent to 11.8% of the inhabitants of the capital of Rio Grande do Sul, according to data from the 2022 Census. Almost 40,000 buildings were affected by the flood.
The level of Lake GuaÃba broke a historic record, reaching 5.33 meters on May 5 and 6. More than 1,000 kilometers of public roads were covered by the flood.
Source: CNN Brasil
I’m James Harper, a highly experienced and accomplished news writer for World Stock Market. I have been writing in the Politics section of the website for over five years, providing readers with up-to-date and insightful information about current events in politics. My work is widely read and respected by many industry professionals as well as laymen.
