Positive Sanction and Fiscal Responsability law Within Municipal Urban Policy

Abstract

This article aims to reconcile the application of positive sanction as an instrument of municipal urban policy and the Fiscal Responsibility Law (Complementary Law 101/2000). The City Statute (Federal Law 10.275 / 2001) elected the use of tax benefits and incentives as a possible means to achieve sustainable urban development. Therefore, from the perspective of an award as a result of an act beneficial to society, no longer pay taxes or have reduced their tribute, one taxpayer that undertake certain conduct desired by the municipality, directed to particular urban policy. On the other hand, this issue its also seen as a waiver of municipal revenues in a federal context in which the municipality is already required to operate with scarce resources. The Fiscal Responsibility Law regulates this waiver and establishes severe penalties for noncompliance. In this context, it is necessary to understand what the positive sanction is, and, in particular, understand the positive sanction as an urban policy instrument, in order to reconcile its application by the municipality in harmony with the Fiscal Responsibility Law. The citys Master Plan will work as a framework that limits and legitimizes the rule providing such benefit or tax incentive.