The reality of the Dendê Community and the exemption of the Urban Building and Territorial Property Tax, IPTU, depending on the commercial value of real estate.

Abstract

IPTU, Brazil’s Urban Building and Territorial Property Tax, is a real estate tax administered by the municipalities and the Federal District (where Brasília is located). Depending on the commercial value of the property, one may be exempted from it. In this study, the reality of the Dendê community (a poor area in the surroundings of Unifor) was analyzed. This community, like many others in Brazilian suburban areas, has gone through an informal urban development process. As a result, among the total population interviewed to date (51 subjects), 25% pay IPTU needlessly, since their property’s value is under the established limit for exemption. This is mostly due to the lack of information of the population on how they may benefit from the exemption law. Fortaleza’s city hall does not provide information on the subject’s civil rights. Keywords: Dende Community; Exemption; Urban Building and Territorial Property Tax.