User of public service and consumer relationship – case study of the decision profiled by the Supreme Federal Court in ADI 5.591/PR

Abstract

User of public service and consumer relationship – case study of the decision profiled by the Supreme Federal Court in ADI 5.591/PR The tax to capture the increase income resulting from public works and the excess condemnation are instruments little used in Brazil and that could provide the necessary fund for the public investment in infrastructure. Both institutes serve to capture the added value of state investment that could not be appropriated by individuals, under penalty of offense to the principle of equality in the burdens and benefits arising from state activity. The real estate valuation resulting from the public work or service may relate to all properties close to the public works or only to certain previously identifiable properties. For ordinary general appreciation, the tax to capture the increase income resulting from public works should be used. For the extraordinary general appreciation, the excess condemnation should be used. For the specific valuation, the State may reduce the amount to be compensated for the appreciation experienced by the remaining unappropriated area.