A bill that allows for the transfer of vehicles even with overdue or installment payments for the Motor Vehicle Property Tax (IPVA) was approved by the Finance and Taxation Commission of the Santa Catarina Legislative Assembly (Alesc) on August 11. However, Bill 122/2025 still needs to be analyzed by two more commissions and the plenary before being sanctioned.
It is important to note that the proposal does not exempt the buyer from the debt; the approved text requires the acquirer to sign a declaration acknowledging awareness of the debts, and this information will be registered in the Vehicle Registration Certificate (CRV). Consequently, both the seller and the buyer will be jointly responsible for the tax until the debt is fully paid, meaning the debt remains linked to the automobile and the State retains its right to credit.
Currently, any outstanding IPVA issue prevents property transfer in Santa Catarina. This rule is based on Article 124 of the Brazilian Traffic Code, which establishes that the issuance of the new CRV depends on proof of payment of all taxes, fees, and fines associated with the vehicle.
The project aims to solve two specific situations. The first concerns future installments: a driver who chose to pay the IPVA in installments and wishes to sell the vehicle before paying off the remaining balance will not need to advance the amount to finalize the transfer. The second situation covers debts from previous years, which will also cease to be an obstacle to completing the transaction.
Bill 122/2025 was proposed by Congressman Matheus Cadorin (Novo) with the explicit purpose of simplifying used car buying and selling procedures in the state. The matter was examined by the Constitution and Justice Commission (CCJ), led by Congressman Napoleão Bernardes (PSD), who defended the constitutionality of the change.
Bernardes argued that the modification does not represent a revenue waiver but rather an incentive to commerce, mentioning a similar model already implemented in São Paulo. However, this comparison requires caution, as the most recent version of the São Paulo government's service charter still requires the settlement of debts as a mandatory step for property transfer.
Legislation will now proceed to the Commission on Labor, Administration, and Public Service, and subsequently to the Commission on Consumer and Taxpayer Rights and Participatory Legislation. Only after receiving favorable opinions in these two commissions will it be ready to move to a plenary vote and, only then, for the governor's sanction.
In most Brazilian states, full payment of the IPVA is a prerequisite for transfer, making Santa Catarina a relevant case to monitor if the proposal is successful. For the buyer, the change brings a clear compensation: by signing the declaration provided for in the project, they assume part of the responsibility for a debt they did not incur. Nevertheless, consulting the debts using the Renavam number before closing the deal remains the most economical way to avoid unforeseen problems.