Gringo Electric Tax Surcharge on Rural Property

@bepmoht Seems odd, did you ask them why and what exactly is the difference.  I found this:

https://swisscam.com.br/en/publicacao/doing-business-in-brazil/11-tributos/11-23-taxation-of-electric-power-supply/

and it mentions nothing about residents paying more than citizens.  It does however mention discounts related to income.

08/26/24 @bepmoht.  There IS a lower electric rate, with a lower ICMS rate on top of it, for rural customers who qualify as "rural producers"; I don't see a direct reference to citizenship, but there may be an assumption there.  The entire description appears here:

https://blog.buscarrural.com/agronegoci … a-o-que-e/

Here's the translation of the most relevant portion, part of the section "Benefício exige comprovção":

"Whenever the government offers a benefit, it is required to update and re-register through the channels provided for this purpose. Last year, the deadline for those who wanted to reduce costs ended in November, and for future occasions it is important to access the ANEEL website or keep an eye on the news.

If you still do not have access to the lowest energy cost and you qualify as a rural producer, you need to present a document that must be issued by the Rural Workers Union in your region. Then, with the proof in hand and an official document with a photo, you will be able to register to receive rural energy.

According to the definition of ANEEL (National Electric Energy Agency), the rural class “is characterized by the supply to the consumer unit that develops agriculture, livestock or aquaculture activities, arranged in groups 01.1 to 01.6 or 03.2 of the National Classification of Economic Activities – CNAE.”

The rural energy rate has a lower value compared to residential energy, considering the price per kilowatt. Furthermore, the ICMS (Tax on Circulation of Goods and Services) charged is also lower."

Could it be that your wife registered for the lower rate at some time in the past, or that some member of her family did so she was grandfathered into it, but that it's not transferable to you without a new registration?

It's the same concept as "farm gas" in my Canadian province. If you're a legit ag producer you get discounted fuel for farm vehicles only.

    Could someone shed some light on why electrical service on a rural property has a higher tax for a permanent resident as opposed to a citizen? My wife and I were informed this today when we wanted to put the electrical service located on her 23 Hectares of property in my name. What section of the bureaucratic law explains this inequity?
   

    -@bepmoht

What has been stated above is correct. Every time you register a new customer for a supply, you have to reapply for discount rural energy (and, obviously, meet the conditions). It is not a difference between foreigner and Brazilian, but the perceived purpose of the supply.

@abthree

Thanks, this information is very helpful. I need to review the paperwork my wife has in hand and get the names of all the players in this game here. A couple of weeks ago I know we stopped by the Rural  union to pickup a copy of the receipt that the taxes were paid on that parcel. We needed it to switch the electric over to our name.

I think I’m starting to see the light.

electrical service on a rural property has a higher tax
    -@bepmoht

Electricity cost is a great topic....

I am curious.  How did you find out that rural property has a higher tax rate?  Higher tax rate than urban, or than your neighbors, or what is published in documentation... 

Could you share a little bit about how you found out that you should be paying less?

I am sure that once you have explained everything, people will start looking for ways to save by checking how much they are currently paying vs what they ought to be paying.

Thank you for bringing this issue up...

@Pablo888

Rural use is actually cheaper than urban delivery.  The reason I found out this was when inquiring about switching the electric bill on my wifes land to my name I was told by the company that the property would then be considered as residential use and therefore would lose the rural discounted rate. I am still investigating this at this point. I will follow up at a later point. As is always the case in Brazil, it’s going to take some more time.

The reason I found out this was when inquiring about switching the electric bill on my wifes land to my name I was told by the company that the property would then be considered as residential use and therefore would lose the rural discounted rate.
    -@bepmoht

Thank you for the info. 

I am inferring the following rule of thumb - always good to ask for any applicable discounts when dealing with rural properties. 

I suspect that with the "agricultural use" designation, there could be further discounts on petrol, water, and probably taxes....  Would be interesting if you can get a tax break on your Starlink bill.... - or at least as an agricultural expense for what you will grow on your land....