Overview

• Councilors advanced the bill that revises the city’s valuation map (PGV), keeping the 10% annual limit for residences and lowering the non-residential cap to 12% through a last-minute collective amendment.
• City hall estimates about 1 million properties will be exempt from IPTU and roughly 500,000 will receive discounts under the proposal.
• Exemptions expand to automatic relief for properties valued up to R$150,000, to single-home owners up to R$260,000, and to properties in ZEIS 1, 2 and 4 starting in 2026 if the final text is maintained.
• Two public hearings will be held between rounds, and after a second-round vote the bill would still require sanction by Mayor Ricardo Nunes.
• Because the legal caps exceed recent 12‑month inflation of 5.13%, some tax bills could rise faster than prices, and an expert cautioned that higher commercial costs may be passed on to consumers.