Santos and Guarujá Eyeing R$45.3 Million from Port Leaseholders in IPTU Revenue for 2024

The municipal administrations of Santos and Guarujá expect to collect R$45.3 million in Urban Property and Territorial Tax (IPTU) from companies leasing areas at the Port of Santos in 2024, with a portion of the revenue earmarked for Education and Health. Both city administrations are challenging a public consultation initiated by the Attorney General’s Office (AGU) regarding the legality of levying taxes on federally leased, concessioned, or delegated public areas to the private sector.

In a statement, the Santos Municipality, through its Secretariat of Finance and Management (Sefin), revealed that it aims to raise R$34.8 million solely from the port terminals on the Margem Direita in the 2024 fiscal year, accounting for 5.21% of the city’s total assessments estimated at R$668.5 million. This year, the tax saw a 3.99% increase.

Sefin emphasized that the collection of IPTU from Port of Santos tenants is firmly grounded in the Federal Constitution, the National Tax Code, and the Municipal Tax Code, regardless of any public consultation. The city asserted that the taxation falls under its legal jurisdiction, as stipulated in the constitutional text, and is fully compliant with existing legislation, emphasizing that modifications cannot be made without the necessary legislative changes.

Regarding defaults by port companies or legal challenges to the collection, the Municipality stated that unpaid debts are pursued through appropriate legal channels.

The majority of tenants voluntarily comply with the tax payment, following a Supreme Federal Court (STF) ruling in 2018 that mandated port terminals to pay IPTU for the Union areas they occupy.

The chart below compares container exports (measured in TEUs) in the first two months of the last three years. The data is from DataLiner.

Container Exports via Santos | Jan-Feb 2022 x Jan-Feb 2024 | TEUs

Source: DataLiner (click here to request a demo)

Allocation of Funds

The IPTU collected from tenants is allocated partly to cover 25% of Education and 15% of Health expenses, as constitutionally mandated, in addition to janitorial services, municipal administration maintenance, public servant salaries, administrative contracts, and general expenses.

Debts and Collections

In Guarujá, the Finance Secretary, Francisco Rocha, revealed that at least two companies together owe a debt of R$77.8 million.

The city reevaluated company registrations in concession areas and rectified errors over the last five years, resulting in a credit of approximately R$57 million from recent assessments. The remaining credit is from legal charges.

Guarujá City Hall revised the IPTU by 4.51% and anticipates collecting over R$10.5 million from companies located on the Left Bank of the port in 2024, constituting 1.9% of the total IPTU collection forecasted at approximately R$550 million for the year.

Rocha clarified that the State and Union are tax-immune and cannot collect municipal taxes, while companies within concession areas conducting economic activities are liable for taxation. The municipality plans to contribute to the AGU’s public consultation, emphasizing the importance of IPTU revenue, with a significant portion dedicated to Education and Health initiatives.

Source: A Tribuna

Click here to read the original news report: https://www.atribuna.com.br/noticias/portomar/prefeituras-de-santos-e-guaruja-pretendem-arrecadar-r-453-milhoes-do-porto

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