Ruling strengthens disability rights and underscores the importance of accessibility in tax policy
A court in the Brazilian state of Minas Gerais has ruled that a child with Autism Spectrum Disorder (ASD) is entitled to exemption from the Vehicle Property Tax (IPVA) — even though the vehicle used for their transportation is not registered in their name. The decision, issued by the 2nd Civil Court of Poços de Caldas, expands the interpretation of tax benefits for people with disabilities and highlights the principle of inclusive mobility.
What the Law Says About IPVA Exemptions for People with Disabilities
Under State Law No. 14,937/2003, as regulated by Decree No. 43,709/2003, the state of Minas Gerais grants IPVA exemptions for vehicles used by or on behalf of individuals with disabilities — including severe or profound intellectual disabilities and autism.
However, in practice, the tax authority has frequently denied the exemption when the vehicle is not formally registered in the disabled person’s name, often affecting minors and others who cannot legally own or drive a vehicle. This has led to legal disputes across the state.
The Court’s Reasoning: Functional Use Prevails Over Formal Ownership
In this case, the court held that the key factor is not legal ownership, but whether the vehicle is used for the benefit of the disabled individual. The judge cited precedents from the Minas Gerais Court of Appeals (TJMG), which have consolidated the view that requiring vehicle ownership is an unreasonable barrier, especially for minors and dependents.
The ruling emphasized that denying the exemption based on ownership alone would violate constitutional principles such as human dignity and equality before the law. It would create an unfair distinction between individuals who can drive themselves and those who require assistance for transportation — despite both being equally in need of accessible mobility.
ICMS Exemption Denied on Separate Grounds
While the IPVA exemption was granted, the request for ICMS (state sales tax) exemption on the vehicle purchase was denied. The court found that the price of the vehicle exceeded the legal limit for this benefit — currently capped at R$70,000 for new vehicles under state tax law.
This distinction underscores that different tax benefits may have separate eligibility criteria, and exceeding one threshold can invalidate the claim regardless of disability status.
Broader Impact: Precedent for Other Families
This ruling provides a valuable precedent for other families of children with disabilities or neurodivergent conditions. It opens the door for parents or guardians to claim IPVA exemptions on vehicles registered in their own name, provided that the vehicle is used primarily for transporting the dependent.
In practical terms, the decision supports greater accessibility and autonomy for families who face daily logistical and financial challenges in ensuring safe and consistent transportation for children with disabilities.
Final Thoughts: A Step Toward Inclusive Tax Policy
The recognition of the IPVA exemption for an autistic child — regardless of formal vehicle ownership — is a powerful affirmation of disability rights and inclusive tax interpretation in Brazil. It highlights how tax law, when applied through a lens of social justice and constitutional principles, can play a critical role in promoting mobility, autonomy, and dignity.
Families in similar situations are encouraged to seek legal advice to ensure their rights are protected and their needs appropriately recognized.