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PROPOSED LAW NO. 90 /X

Exhibition of Motives

From among the tributes, the figure of the rates has been gaining, in recent years, a

increasing importance, to a large extent resulting from the conception that the

particular individuals who receive, in concrete, advantages or benefits from the part of the

public, they must bear the specific burdens that for public servants arise

of your activity.

With regard to local authorities and in so far as they have, as a rule, a

more direct and close relationship with private individuals by providing them services

specific, concrete and the most often individualizable, the figure of the rate has a

growing economic-financial importance.

Such relevance stems, on the one hand, of much of the costs in which they incur the

local authorities being generated by the provision of concrete services to private individuals and,

on the other, by the fact that for private individuals such services are more and more

important for their quality of life and for private economic activity.

In the classical sense, the rates are tributes that have a bilateral character, being the

counterpart to the provision of a public activity, the use of goods from the field

public or removal of legal limits on the activity of private individuals.

The understanding is already consolidated, to a large extent coming from a

abundant jurisprudence of the Constitutional Court, of which in the setting of the "quantum"

of the fee whether to take into account the principle of the benefit (what advantages obtains the

particular) and the principle of coverage of cost, not admitting, under penalty of the figure

cease to have the nature of fee, an intolerable disproportion between the amount of

tax and the cost of good or service.

On the other hand, listening to the essentiality of many of the services to be provided by the ente

public, it is understood that the principle of fair allocation of resources can and should

be held in consideration of the fixation of the "quantum" of the rate.

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This Law intends to establish the general regime for the establishment of the rates of the authorities

locals, disciplining a matter where one has generated great conflictuality among the

authorities and private individuals, with the growing resource to the Courts.

Leaving a wide margin of freedom to local authorities as to the creation of

rates and how much to the determination of its "quantum", with this Law enclosed with

rigor the figure of the rate, making it indisputable that your requirement can only result as

the counterpart of effective benefits on the part of local authorities, within their

attributions.

In accordance with the principle of proportionality, it is required that the regulations to be issued

by local authorities in the creation of fees or when changing their "quantum",

contain a detailed justification of the services to be provided, of the goods whose

use is granted to private individuals or acts for which they are required

authorisations, as well as economic-financial justification of the quantitative to be charged.

This latter requirement (the economic-financial justification) is a determining element

for the rigorous control of the nature of the tribute as a fee.

Taking into account the multiplicity of situations, variables from the municipality to autarky, in

that the creation of fees is warranted, in this law they indicate only large areas of

activity within which local authorities may proceed to the creation of fees,

therefore leaving a broad autonomy to local authorities.

With the present law, discipline-if also the regime regarding coercive collection, shall be

expiry and prescription and the guarantees of private individuals.

Thus:

In the terms of d) of Article 197 (1) of the Constitution, the Government presents to the

Assembly of the Republic the following proposal for a law:

CHAPTER I

General principles

Article 1.

Scope

1-A present law regulates the legal relations-tax-generating tax-generators of the obligation to

payment of fees to local authorities.

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2-For the purposes of this Law, legal relations-tax-generative tax relationships are considered

obligation to pay fees to local authorities those established between the areas

metropolitans, municipalities and freguesias, and natural or legal persons

and other legally-equated entities.

Article 2.

Subsidiary legislation

In accordance with the nature of the subjects, the legal relations-tax-generating tax

obligation to pay fees to local authorities apply, successively:

a) The Local Finance Act;

b) The General Tax Law;

c) The Act establishing the framework of competences and the legal regime of

functioning of the organs of municipalities and freguesias;

d) The Statute of Administrative and Fiscal Courts;

e) The Code of Procedure and the Tributal Process;

f) The Code of Procedure in the Administrative Courts;

g) The Code of Administrative Procedure.

Article 3.

Rates of local authorities

The rates of local authorities are tributes that are based on the concrete provision of a

local public service, in the private use of goods from the public domain of the authorities

places, or in the removal of a legal obstacle to the behaviour of private individuals

when such is the allocation of local authorities, under the law.

Article 4.

Principle of legal equivalence

1-The value of local authorities ' fees is fixed in accordance with the principle of

proportionality, and shall not exceed the cost of local public activity or the

benefit earned by the particular.

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2-The value of the fees can be fixed on the basis of disincentive criteria to the practice of

certain acts or operations.

Article 5.

Principle of fair allocation of public charges

1-A The creation of fees by local authorities respects the principle of pursuing the

local public interest and aims to meet the financial needs of the

local authorities and the promotion of social purposes and urban qualification,

territorial and environmental.

2-Local authorities can set up fees for funding of utilities generated by the

realisation of local government expenditure, when this results divisible usages that

benefit a right and determined group of subjects, regardless of their

will.

Article 6.

Objective incidence

1-Municipal fees focus on utilities provided to private individuals or generated

by the activity of the municipalities, specifically:

a) For the realization, maintenance and enhancement of urbanistic infrastructure

primary and secondary;

b) By the granting of licences, practice of administrative acts and satisfaction

administrative of other particular pretensions;

c) By the use and harnessing of goods from the public and private domain

municipal;

d) By traffic management and parking areas;

e) By the management of public equipment for collective use;

f) For the provision of services in the field of risk prevention and protection

civil;

g) By the activities of promotion of social and qualification purposes

urbanistic, territorial and environmental;

h) By the activities of promotion of development and local competitiveness and

regional.

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2-Municipal fees may also focus on the carrying out of activities of the

private individuals generating negative environmental impact.

3-The fees of the freguesias focus on utilities provided to private individuals or

generated by the activity of the freguesias, specifically:

a) By the granting of licences, practice of administrative acts and satisfaction

administrative of other particular pretensions;

b) By the use and harnessing of the public and private domain of the fregues;

c) By the management of rural and urban equipment;

d) By the activities of promoting local development.

Article 7.

Subjective incidence

1-The active subject of the legal-tax relationship generator of the payment obligation

of the fees provided for in this Law shall be the local municipality holder of the right to demand

that provision.

2-The taxable person is the natural or legal person and other entities legally

equstops that, under the terms of this Act and the regulations approved by the

local authorities, be bound by the fulfillment of the tax provision.

3-Are subject to the payment of fees from local authorities the State, the Regions

Autonomous, local authorities, funds and autonomous services and the entities that

integrate the business sector of the State, Autonomous Regions and Municipalities

Locations.

CHAPTER II

Creation of fees and modification of the legal relationship-tax

Article 8.

Creation of fees

1-The rates of local authorities are created by regulation approved by the body

respective deliberative.

2-The regulation that creates municipal fees or rates of the freguesias contains

compulsorily, under penalty of nullity:

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a) The indication of the basis of objective and subjective incidence;

b) The value or the calculation formula of the value of the fees to be charged;

c) The economic-financial statement relating to the value of fees,

in particular the direct and indirect costs, the financial burden,

depreciation and future investments made or to be carried out by the municipality

location;

d) The exemptions and their rationale;

e) The mode of payment and other forms of the extinction of the tax provision

admitted;

f) The admissibility of payment in installments

Article 9.

Updating of values

1-The annual budgets of local authorities can update the value of fees

established in the respective creation regulations, in accordance with the rate of

inflation.

2-A change in the values of the rates in accordance with any other criterion other than the

referred to in the preceding paragraph shall be effected by amendment to the Regulation of creation

respective, and should contain the economic-financial statement underlying the new

value.

Article 10.

Settlement and collection

1-The setting-up regulations of local authorities lay down the rules

relating to the settlement and collection of those tributes.

2-Local authorities may not deny the provision of services, the issuance of

permits or the continuation of the use of goods from the municipal public domain

on the reason of the non-payment of fees, when the taxable person deducts claim

or challenge and be provided with the idopian guarantee.

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Article 11.

Payment

1-The rates of local authorities extinguish themselves through their payment or other

forms of extinction under the terms of the General Tax Act.

2-The rates of local authorities can be paid by dation in fulfillment or by

compensation, when this is compatible with the public interest.

Article 12.

Default

1-Are due interest of late payment for the extemporaneous fulfillment of the obligation to

payment of fees from local authorities.

2-debts that are not paid voluntarily are the subject of coercive collection

through the tax implementation process, pursuant to the Code of Procedure and the

Tax Process.

Article 13.

Advertising

Local authorities must make available, either in a visible role in visible place in the

buildings of the respective headquarters and assemblies, either on their electronic page, the

regulations that create the fees provided for in this law.

Article 14.

Caducity

The right to settle the fees shall lapse if the liquidation is not validly notified to the

taxable person within three years from the date on which the tax fact occurred.

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Article 15.

Prescription

1-The dues for fees to local authorities prescribe within eight years of counting

of the date on which the tax fact occurred.

2-A citation, the complaint and the imputation interrupt the prescription.

3-A stop of claim proceedings, challenge and tax execution by term

greater than one year in fact not attributable to the taxable person does cease to

interruption of the prescription, adding, in this case, the time that proceeded after

that period to what has elapsed to the date of the autuation.

Article 16.

Guarantees

1-The taxable persons of the fees for local authorities may complain or

challenge the respective settlement.

2-A The claim is deducted before the body which carried out the settlement of the fee on time

of 30 days from the notification of the settlement.

3-A claim is presumed to be undue for the purposes of judicial challenge if it was not

decided within 60 days.

4-From the tacit or express misjudgment rests with judicial challenge to the Court

Administrative and Fiscal of the Municipality or the Freguesia Junta area, within the

60 days from the dismissable.

5-A Judicial challenge depends on the preview deduction of the claim provided for in paragraph 2

of this article.

Article 17.

Transitional arrangements

The fees for currently existing local authorities are repealed at the beginning of the

second financial year subsequent to the entry into force of this Law, save if, until this

date:

a) The current regulations are in accordance with the legal regime here;

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b) The prevailing regulations are amended in accordance with the legal regime

here predicted.

Article 18.

Entry into force

This Law shall come into force on January 1, 2007.

Seen and approved in Council of Ministers of July 27, 2006

The Prime Minister

The Minister of the Presidency

The Minister of Parliamentary Affairs