In Portuguese Motor Vehicles Tax is named Imposto sobre a Propriedade de Veículos Automotores and often referred to by the abbreviation IPVA .
The IPVA is paid for ownership of a motor vehicle, such as cars, motorcycles, boats, airplanes and others, and their taxpayers are the owners of these properties.
From the total amount collected for each vehicle with IPVA, 50% is allocated to the state government, while the other 50% is allocated to the municipality where the vehicle was purchased. The rate used is determined by each state government, based on their respective criteria. The tax is calculated based on the market value of the vehicle varying between 1% and 3% rate.