The president of the Mato Grosso do Sul Court of Justice, Desembargador Dorival Renato Pavan, denied an urgent request by the Campo Grande city hall on October 10, 2023, which sought to implement a real increase in the property tax (IPTU) for the year 2026. Following this decision, taxpayers are only required to pay the tax adjusted for inflation, which is set at 5.32%. This ruling prevents any increases beyond inflation that the city attempted to enforce based on property revaluations made without the necessary legislative approval from the municipal chamber.

In practical terms, the decision effectively suspends any increase in IPTU that exceeds the inflation rate as it relates to the city's property assessments. Taxpayers do not have the obligation to pay the tax until new calculations are made. The court ruling has implications for the city’s financial planning, as it allows residents to pay only the inflation-adjusted tax amount, which may hinder the municipality's revenue collection based on higher valuations.

In response to the court's ruling, the city hall argued that the suspension of the increase could lead to a financial crisis for the municipality. They filed a Security Suspension Request, which is generally used in urgent situations to contest previous judicial decisions. The city is now under pressure to recalculate the IPTU amounts and issue new payment slips within a 30-day timeframe. This situation reflects the ongoing tensions between local government financial needs and judicial oversight in taxation matters in Brazil.