Law exempting motorcycles with up to 125cc from IPVA (Vehicle Property Tax) is enacted.

ASN - Motorcyclists in Sergipe can take advantage of a series of benefits resulting from the package of measures announced by Governor Marcelo Déda last April, which include total exemption from the Vehicle Property Tax (IPVA) and licensing fees for motorcycles up to 125 cc, and total amnesty for past debts (excluding traffic violations).

The bill submitted by the Executive Branch has already been approved by the Legislative Assembly and signed into law by the acting governor, Jackson Barreto, resulting in Law No. 7,655, of June 17, 2013, which establishes new regulations for the IPVA (Vehicle Property Tax) in the State of Sergipe. The IPVA exemption for 125cc motorcycles is effective from January 2014.

The measure is expected to benefit 60% of all motorcycles in the state, since, out of the 209.819 registered motorcycles, 125.067 are up to 125 cc. In 2012, debts related to overdue licenses and taxes already amounted to R$ 17.4 million.

In the act of signing the bill to be sent to Alese (Legislative Assembly of Sergipe), Déda said he sees the IPVA (Vehicle Property Tax) exemption as a measure aimed at further organizing traffic in the capital and throughout the state: "This action aims to offer conditions for the legalization of motorcycles throughout the state, since, in many cases, they are the only vehicle of the family and even the work tool," the governor explained.

According to Déda, the measures also represent a response to a demand presented by motorcyclists in the interior of the country who, in many cases, were unable to legalize their motorcycles due to the high cost of outstanding licensing fees and taxes.

Another new feature of Law No. 7,655 is the creation of an installment payment program for IPVA (Vehicle Property Tax) debts, valid for all vehicles, offering up to 48 months to pay. It provides for a 95% reduction in fines and an 80% reduction in interest for payment of previous debts in full, but this depends on regulation by the State Finance Secretariat.

For payment terms of up to 24 months, discounts of 65% on late payment penalties and 50% on interest are offered. For terms of 25 to 48 months, a 50% reduction in late payment penalties and a 40% reduction in interest are offered. These measures are valid for debts incurred up to January 1, 2013, whether or not they are registered as outstanding debt. Debts that are not yet due are not included.

Regulation

The State Finance Secretariat (Sefaz) will publish in the coming months a regulation governing the installment payment program for Vehicle Property Tax (IPVA) debts, opening the opportunity for vehicle owners to negotiate their IPVA debts in up to 48 installments, with reductions in fines and interest resulting from late payment.

The general terms of the installment plan are already stipulated in Law 7.655/2013, but a decree detailing the negotiations is necessary. According to what has already been established, the owner has the option of paying in full with a 95% reduction in punitive fines and an 80% reduction in late payment interest. For payments in installments of up to 24 months, the reduction is 65% of punitive fines and 50% of late payment interest, while for payments in installments of 25 to 48 months, the reduction is 50% of punitive fines and 40% of late payment interest.