Improvement Contribution
In Portuguese Improvement Contribution is named Contribuições de Melhoria.
The Improvement Contribution provided by the Federal Constitution is determined by the property value increase located in areas which directly or indirectly benefited from public works.
The Improvement Contribution is due in cases of real estate and private property value appreciation, under any of the following circumstances:
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Opening, widening, paving, lighting, planting, storm sewers and any other improvements to the public square and/or two-way street
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Construction and expansion of parks, sports fields, bridges, tunnels and viaducts
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Construction or expansion of rapid transit systems including all buildings and works necessary for the proper functioning of the system
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Services and works of water supply, drainage facilities, electrical networks, telephone booths, transport and communications in general or gas supply and public convenience facilities
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Protection against water damage
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Construction of railways and civil projects, paving and improvement of highways
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Airfields, airports and their access points
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Landfills and others
The Improvement Contribution is to be paid by the taxpayers with an annual installment that does not exceed 3% of the highest fiscal value of their property.