Draft bill proposes property tax exemption for senior citizens.

Bahia 247

Councilman Odiosvaldo Vigas (PDT) submitted Bill No. 212/13 to the City Council, which provides for total or partial exemption from the payment of the Urban Property Tax (IPTU) for senior citizens aged 65 and over who own only one property in Salvador.

For people aged 83 and over who are retired or completely incapacitated, the proposal is for a 100% exemption from the fee charged by the Municipality. The discount is 75% for seniors aged 65 to 70 with a monthly income of up to one minimum wage; 50% for the 71 to 76 age group with an income of up to two minimum wages; and 25% for seniors aged 77 to 82 with an income of up to three minimum monthly wages.

"There is no argument that this exemption will harm public coffers. Initially, it will result in less revenue, but it will be offset by lower healthcare costs and also because there is an income ceiling for the exemption and a single property, effectively distributing income to those who need it most," the councilman states in the justification for the measure.

Odiosvaldo's project also provides for 100% exemption for people living with HIV, those diagnosed with multiple sclerosis and Alzheimer's disease, and those who own only one property in the capital.

"With this law, we aim to assist needy retirees by ensuring this exemption, which will not substantially affect the revenues of our City Hall; on the contrary, it will demonstrate respect for elderly people without many financial resources in our Salvador," says Odiosvaldo Vigas.

If the proposal is approved by the City Council and signed by the mayor, individuals who meet the eligibility criteria or their legal representatives must apply for property tax exemption directly at the Municipal Finance Department annually between January 2nd and February 2nd, providing proof of the required criteria.