Municipal Property Taxes with an environmental bias: IMI in Portugal and Green IPTU in Salvador (BA) - Brazil

Abstract

This paper investigates proposals for municipal taxation with an environmental bias, focusing on the municipal property tax (IMI), in Portugal, after the Green Tax Reform, and the Urban Building and Land Green Tax (Green IPTU) in the city of Salvador, Bahia/Brazil. The methodology used is the sustainability SWOT analysis, according to Metzger et all (2012) in which were verified internal strengths and weaknesses, as well as external opportunities and threats in the implementation of environmental politics of taxation, comparing both ecological property tax experiences. Among the strengths, both legislation stablishes municipal competence in the greening process in order to improve cities infrastructure. Among the weaknesses identified in both legislation is the possibility of discounting for properties located in protected areas, which violates other legal provision. One of the opportunities in both legislation is the adoption of economic resources incentives, with the award of taxpayers who have energy efficiency certification in their buildings, which corroborates the goals of sustainable development. Both legislations analyzed, which constitute economic instruments, motivate society to cooperate, in the long term, to achieve sustainability, including sustainable development goals.