The Court of Justice of Mato Grosso do Sul (TJMS) recently made a significant ruling by denying a second appeal from the City Hall of Campo Grande regarding the Urban Property Tax (IPTU). This decision comes after the court issued an injunction that suspends the payment deadline for the tax, originally due on February 12, until the city recalculates the amounts owed. The ruling mandates that the tax adjustment be capped at a 5.32% increase, correlating with the inflation rate, and the city is required to issue new payment slips within 30 days.

The initial injunction was prompted by actions from the Order of Lawyers of Brazil, Seccional Mato Grosso do Sul (OAB-MS), which raised concerns over the tax's increase exceeding the inflationary rate. The decision reinforces the legal obligations for the city to adhere to this inflation limit, illustrating the ongoing dispute over fiscal responsibilities and compliance with legal standards in tax assessments. The rejection of the city's appeal by Judge Denise de Barros Dodero emphasizes the judiciary's role in mediating such conflicts and protecting taxpayer rights in the region.

This ruling not only affects the immediate financial obligations of property owners in Campo Grande but also sets a precedent for how municipal tax increases are managed in relation to inflation. Stakeholders, including local residents and legal experts, will be closely watching for any further developments, particularly how this decision will influence the city's budgeting and future tax policies. The outcome also signals a potential shift in how local governments may approach tax hikes amidst economic pressures and public scrutiny.