In a recent decision, Judge Ariovaldo Nantes Corrêa from the 1st Court of Diffuse, Collective, and Homogeneous Individual Rights in Campo Grande has reaffirmed the suspension of the 2026 IPTU payments for property owners whose assessments increased beyond inflation rates. This ruling follows a preliminary injunction granted in a lawsuit initiated by the Brazilian Bar Association in Mato Grosso do Sul (OAB-MS). The court’s order aims to address concerns and confusion surrounding tax obligations in the lead-up to the tax payment deadline on Thursday, September 12.

The lawsuit challenges the increase in property values, which is the basis for the IPTU tax amounts. The increase was implemented based on a reassessment conducted by the city’s administration which the OAB claims was done through a decree, rather than by law approved by the City Council. This legal action emphasizes the need for transparency and lawful methods of amending property valuations that could significantly impact taxpayers' financial responsibilities.

As a result of the court's decision, it is essential for residents to understand that only the IPTU tax payments reflecting inflated valuations are currently suspended. This means that property owners must check their assessment notices closely to determine if they qualify for this suspension and understand their obligations as the payment deadline approaches.