Teresina Halts IPTU Collection on Built Properties Following Court Order

The Municipality of Teresina, the capital of Piauí, has suspended the collection of the 2026 IPTU (Property Tax) for properties with existing structures, including houses, apartments, and commercial establishments. This decision is in compliance with a ruling by the Piauí Court of Justice (TJ-PI) and affects even the second installment of the tax, originally due at the end of July. The suspension will remain in effect until a new judicial decision is issued. Collection of IPTU for vacant land (terrenos sem construção) continues as normal. Taxpayers with built properties who wish to pay voluntarily can only do so in person at the Taxpayer Service Center in downtown Teresina. The Municipal Attorney General's Office (PGM) recommended the suspension after the TJ-PI ruled in favor of the Brazilian Bar Association, Piauí Section (OAB-PI). The OAB-PI had challenged the calculation model used for the 2026 IPTU, leading the court to order the municipality to recalculate the tax for affected properties. Municipal finance officials met to discuss the implications of the ruling, and the administration intends to appeal the judicial determination. The suspension specifically targets properties with construction, as clarified by the Deputy Municipal Finance Secretary, Maria do Socorro Ribeiro, distinguishing them from vacant land taxes. The dispute arose from an update to the Generic Property Value Plan, which had not been updated for over a decade. Initially planned as a direct adjustment, the municipality later agreed to a staggered increase, with an approximate 25% update scheduled for 2026. The OAB-PI argued that the recalculation process contained irregularities, prompting the TJ-PI's order for a new calculation.