The São Paulo Court of Justice (TJ-SP) has denied a request from the São Paulo Public Prosecutor's Office (MP-SP) to urgently suspend a law that introduced a new Tax Code in Piracicaba, São Paulo. This law modifies the General Value Plant and alters the rules for collecting several local taxes, including the Urban Real Estate Tax (IPTU), the Transfer Tax on Real Estate (ITBI), and the Tax on Services of Any Nature (ISSQN). The court's decision emphasizes the importance of caution before suspending recently enacted tax legislation.

In the ruling, Judge Wander Pereira Rossette Júnior acknowledged the MP's valid concerns but maintained that there must be a presumption of validity and constitutionality regarding the law. The judge highlighted that an immediate suspension of such a tax-related law could threaten the fiscal management and revenue collection of the municipality. The decision reflects the delicate balance between ensuring responsible tax policy and addressing public concerns related to tax increases.

This ruling underscores ongoing tensions between municipal authorities aiming to enhance tax revenue to support local governance and public oversight institutions like the Public Prosecutor's Office that seek to protect citizens from potentially excessive taxation. The outcome of this case could have significant implications for local governance in Piracicaba, setting a precedent for how similar tax-related laws are challenged and upheld in the future.