The legislation states that property taxes should be, mandatorily, paid at the place of domicile or actual residence of its owner. In order to reduce or eliminate the payment of property taxes, São Paulo owners of motor vehicles have to make the registration and licensing of the same in other states.
Most of the addresses used to defraud the IPVA concentrated on Brokerage offices, in homes of relatives or friends of the same. For cars with petrol, Paraná, tribute is 2,5% the value of the vehicle and, in Tocantins, 2%, against 4% in Sao Paulo. For companies that have fleet of vehicles the tax falls 1% Paraná and Tocantins. The latter state still free this segment of the property taxes pay for a year.
None of this would happen if the IPVA prices in São Paulo were not abusive. The same goes for many other taxes that are withheld for being abusive, as the import tax which is largely responsible for embezzlement. The solution is not to set up mega-operations to spend more public money, just charge more fair values, that people stop withholding and tax collection increases, compensating and even surpassing the “loss”. But while the rulers are only concerned with lining their own pockets, leaving what is public interest in the background, it will never happen.