Urban Property Tax (IPTU) collection: a comparative diagnosis and solutions for improving municipal performance

Abstract

Considering that the Urban Property Tax (IPTU) is one of the main sources of municipalities' own-source revenue, yet presents significant disparities in tax collection among Brazilian municipalities, this study conducts a comparative diagnosis of six northeastern capitals and proposes solutions based on experiences from other jurisdictions. The research examines factors such as economic indicators, real estate market dynamics, cadastral data quality, assessment levels, and tax delinquency rates. Subsequently, strategies grounded in information technology and mathematical models are presented, highlighting the importance of consolidated databases, institutional integration, and the use of statistical techniques and machine learning methods to detect patterns and inconsistencies, as well as to support automated valuation processes. The findings reveal contrasting performance among municipalities, primarily associated with cadastral quality, assessment obsolescence, and delinquency levels. The study concludes that many municipalities have significant potential to increase IPTU revenue through investments in technological solutions capable of improving cadastral systems, enhancing diagnostic analysis, and guiding more efficient tax enforcement actions, thereby strengthening municipal revenue and expanding public investment capacity.