REAL ESTATE TAXATION AND ITS OMISSIONS IN URBAN POLIC

a case study of the Functional Metropolitan Region of Natal

Abstract

This study analyzes real estate taxation from the perspective of capturing urban land value increments and the lack of effectiveness of the instruments provided in urban legislation. Additionally, it aims to investigate the relationship between the collection of property taxes (IPTU and ITBI) and investment in urban infrastructure, which has the potential to enhance urban land value. The chosen spatial scope is the functional Metropolitan Region of Natal, comprised of the municipalities of Natal, Parnamirim, São Gonçalo do Amarante, Macaíba, and Extremoz. These municipalities experience significant real estate dynamics and are undergoing urban expansion, yet they lack urban planning that aligns with municipal tax management and enables a more equitable distribution of the benefits derived from this revenue. In this regard, it reflects on the capacity to address the historical challenges that cities face in capturing resources for public investments in urban infrastructure. Finally, the study sought to understand how real estate taxation can be utilized to finance urban development, contributing to the perspective of the Right to the City through the lens of urban justice, integrated with the capacity for investment and financing of cities through established taxes on private property, which also serve non-fiscal purposes.