Statistical models for generating the plants of generic values: an application in a small municipality

Abstract

An important source of municipal revenue, the IPTU is based on the value of the property, established by the Generic Value Plan (PVG), which is outdated in most Brazilian municipalities. Thus, the objective of this work was to use spatial econometrics to generate a model that allows determining the venal value of each property in the urban area of Rio Paranaíba/MG. The most adequate models were defined, considering the MCRL. For the models that presented neighborhood effects, the spatial weights matrix was generated, necessary for the determination of the spatial lag models and the spatial error model. By means of these, the homogenized variable was determined, which was included in the final model as an independent variable. The models that presented the most adequate were those that used the independent variable homogenized, which allowed to determine the value of each property by species that are consistent with market values. The methodology used proved to be feasible for application in small municipalities, which, together with the real estate registry, allow to update their tax collection bases and comply with the principle of tax equality. This study demonstrated the feasibility of using robust and recognized methods by the ABNT for small towns.

Keywords:
Venal value of the property; Spatial econometrics; Generic Value Plan (PVG)