01 - Municipalização do ITR

Summary

The video explains how municipalities can increase their revenue by taking full control of collecting the ITR (Rural Property Tax), a federal tax. Although the federal government collects the tax, municipalities can receive 100% of the ITR revenue if they municipalize the tax collection through an agreement with the Federal Revenue Service. The speaker emphasizes the importance of having qualified staff to manage this process and how municipalities can better assess the value of rural land to boost tax collection. This is particularly beneficial for areas with significant agricultural properties.

Takeaways

• 📈 The ITR (Rural Land Tax) is a significant source of revenue for municipalities.
• 🤝 The Federal Constitution grants the Union the power to collect ITR but also allows municipalities to receive 50% of the revenue collected.
• 🛑 The Union lacks the capacity to effectively collect ITR, leading to low revenue due to underreported land values.
• 💰 Receiving 50% of a small revenue is almost negligible for municipalities.
• 🏘️ The Constitution allows municipalities to collect 100% of the ITR revenue if they assume responsibility for collection.
• 🌾 Municipalities with large rural areas and many farms have the potential to increase their revenue significantly by municipalizing ITR collection.
• 🔧 To municipalize ITR collection, the municipality needs to establish a simple agreement with the Federal Revenue Service.
• 👨‍💼 A qualified career public servant, certified through a competitive process, is required to handle the ITR collection process.
• 📊 Municipalizing the ITR enables better land value assessment and more accurate tax reporting, increasing revenue.
• 🏞️ Municipalities are more familiar with local land conditions than the Union, making them better suited to ensure accurate ITR collection.

Q & A

What is ITR and who is responsible for collecting it?

ITR (Imposto sobre a Propriedade Territorial Rural) is a Federal tax in Brazil, and the responsibility for collecting it lies with the Union, as designated by the Brazilian Constitution.

How much of the ITR revenue does the municipality receive if collected by the Union?

When collected by the Union, the municipality receives 50% of the total ITR revenue.

Why is the revenue from ITR typically low for municipalities?

The revenue is low because individuals often declare undervalued land, submit inaccurate data, and the Union lacks resources to efficiently enforce and collect the correct amount.

What opportunity does the Constitution provide to municipalities regarding ITR collection?

The Constitution allows municipalities to collect ITR themselves through a process called 'municipalization,' enabling them to keep 100% of the revenue.

What are the benefits of municipalities taking over the collection of ITR?

By municipalizing ITR collection, municipalities can receive 100% of the revenue, declare land values more accurately, and closely monitor large properties, which can significantly increase their income.

What conditions must a municipality meet to take over ITR collection?

A municipality needs to sign an agreement with the Federal Revenue Service, have a permanent civil servant in charge, and prove that this servant is qualified and not assigned through job shifts or function deviations.

How can the municipality benefit from declaring the correct land value?

By declaring a more realistic land value, the municipality can ensure higher tax revenue, as the current practice of underreporting land value results in minimal tax collection.

Why is the municipality in a better position to oversee ITR collection than the Union?

The municipality has a closer understanding of local land and property realities, which allows for more accurate tax collection and property monitoring compared to the Union, which operates from a distance.

What should municipalities with large rural areas or many farms consider regarding ITR collection?

Municipalities with large rural areas or a significant number of farms should consider municipalizing their ITR collection to potentially increase their revenue.

How does the interaction between the municipality and the Federal Revenue Service change after municipalization?

After municipalization, the municipality has greater interaction with the Federal Revenue Service, allowing for better land value assessments and more effective tax enforcement.