^

Cebu News

Panel explains real property tax updating to stakeholders

Iris Hazel M. Mascardo - The Freeman

CEBU, Philippines —  The proposed ordinance on the revised real property tax (RPT) is now on its third public hearing while the city government still has to address misconceptions on the revisions emphasizing that they are not directly raising the taxes but rather just “updating” it.

On Thursday afternoon, the Committee on Budget and Finance invited various stakeholders, developers, homeowners’ associations, independent appraisers, and real estate brokers for a public forum.

Committee chairperson, Councilor Noel Wenceslao, said the forum is important to thoroughly explain the grounds of the proposed ordinance.

“I’ve been hearing with the other media that this is purely on the increase of taxes, actually we are just complying sa national law, sa DILG (Department of Interior and Local Government), which is in their Section 219,” said Wenceslao.

Section 219 of the Local Government Code states “that general revision of assessment and property classification should be undertaken within two years after the effectivity of the Local Government Code and once every three years thereafter.”

The RPT hasn’t been revised since 2003 and hasn’t been implemented until 2006. According to Wenceslao, as the other neighboring cities have already revised their RPT, Cebu City remains implementing the tax rates established in 2003.

He added the Cebu City government has been constantly reminded by DILG through the Bureau of Local Government Finance that the Fair Market Value (FMV) which the soar of RPT rates has been based on, needs to be revised and updated.

“Now kining revision is not clearly about the increase of the RPT, it is just an updating of the FMV,” said Wenceslao.

There are three components of the RPT which include; building, machinery, and land. Wenceslao explained that for land, they have to implement the present FMV.

He added that land and its value will always “appreciate”, meaning, its rate will always increase over time, especially in Cebu City, which is considered a very dynamic city.

Wenceslao also reiterated that the assessment level of the properties, which is among the factors that the tax rate is being computed from, remained as it is. It includes two percent for residential lands, 10 percent for commercial and industrial, 10 percent for special, and 14 percent for agricultural.

As for buildings and machinery, Wenceslao said they impute “depreciation cost.”

“Kung natukod na 2003 ang yuta…nya naa namay depreciation charges, so iyang value for improvement niya mo ubos…also with machinery, kung napalit nimo 2003 ang machinery, nya until now it is still operating, so 2003 mao pa nay value, but then i-depreciate kay naa may wear and tear so miubos iyang value,” said Wenceslao.

He added that because of the depreciation of the machinery and buildings, its impact on the tax rate may also decrease.

Over this, Wenceslao added that the revised RPT ordinance does not only mean that tax rates are increasing but rather updating the tax rates as a whole which, he added, can be thoroughly understood by property owners.

Wenceslao authored the said proposed ordinance titled, “An Ordinance Enacting the 2023 Revised Property Tax Code for the Taxing Jurisdiction of the City of Cebu”. (CEBU NEWS)

vuukle comment

RPT

Philstar
x
  • Latest
Latest
Latest
abtest
Are you sure you want to log out?
X
Login

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

Get Updated:

Signup for the News Round now

FORGOT PASSWORD?
SIGN IN
or sign in with