Tax Reform: 'atypical' data could affect portion of IBS allocated to cities in the Campinas region

Understand why this matters According to Complementary Law No. 227, the calculation of each municipality's reference revenue will take into account: ISS collection; and the part of the ICMS passed on by the state to the city hall. The values ??recorded between 2019 and 2026 will be used. Before calculation, these numbers will be corrected by the nominal variation in the total collection of all states and municipalities until the year 2026. Therefore, a change registered in just one year can affect the average, but does not alone define the municipality's index. The coefficient for each city will be calculated based on the comparison between its average revenue and the average revenue of all states and municipalities and the Federal District. According to Complementary Law No. 227, this index will be used to divide the portion of IBS reserved for the transition between the two systems. Today, the ISS is usually paid to the municipality where the company providing the service is located. Complementary Law No. 116 of 2003, however, provides for exceptions. In some cases, the tax is paid at the location where the service was performed or where the customer is. ICMS is collected by states, which pass on part of the amount to municipalities. With the Tax Reform, the collection will, little by little, follow the destination of the operation, in accordance with the rules of Complementary Law No. 214. "Today, the product or service provided in a given municipality causes that collection to remain in the place of the provider. Tomorrow, with taxation at the destination, the money no longer stays where it was produced, but where it will be consumed. This completely changes the dynamics of where the money ends up", says the leader of ROIT's Government area, Gelson Severo Filho. If a city reports a different amount than what it actually collected or received, and the data is not corrected, the calculation of the average and coefficient may be affected. The IBS Management Committee will use Siconfi data, but may also consult other official sources. Among them are government balance sheets, data from Simples Nacional, information on the portion of ICMS passed on to municipalities and reports provided for in the Fiscal Responsibility Law. If data is considered incorrect and there is no other official source, the law allows the Steering Committee to make an estimate. The criteria used must be disclosed beforehand. READ ALSO: Understand the main points of the tax reform, approved by the Senate Mayors ask for 'guarantee' that they will receive revenue and 'balance' in council to manage taxes Haddad says that changes to the ISS will not reduce municipal revenue; mayors fear loss of autonomy Lula creates tax reform management committee and launches platform for new system Tax reform is enacted by Congress WILTON JUNIOR/ESTADÃO CONTEÚDO What caught attention in the survey? In the methodology used by ROIT, drops greater than 40% or increases above 100% generate an alert for review. According to Gelson, a drop like the one recorded in Santo Antônio do Jardim can have several explanations. "In 2024, for example, an industry may have generated a lot of construction and generated a lot of ISS. Afterwards, revenue returned to normal levels. So, it could be an atypical situation, but it could also be an inconsistency in the declaration. You can't say it's a mistake," he said. In Tuiuti, the reported value went from around R$282,000 in 2021 to approximately R$600,000 the following year, according to data analyzed by ROIT. "What can explain this? The year 2021 may be under-declared; the year 2022 may have been declared the greatest; the municipality may have set up an inspection force; or some activity that generated a lot of ISS could have happened in 2022 and not in 2021. We have all these possibilities", he explained. What happens now? According to ROIT, city halls must check the fiscal and accounting data before publishing the coefficients and seek to correct possible problems. Complementary Law No. 227 determines that the IBS Management Committee publishes the coefficients by August 31, 2027. The body must also inform