Most provinces use outdated market values for realty tax

MANILA, Philippines - Most provinces still use outdated market values for collecting real property taxes, reducing possible revenues that could have been used for social services, according to the Department of Finance (DOF).

“Revenues from real property tax sustain local government units’ delivery of basic services for the people. Under the Local Government Code, real property tax should be based on a Schedule of Market Values (SMV) that is fair, current and updated,” the DOF said.

When local government units fail to update their SMVs, this results in “limited revenues to the government and cause unjust burden to taxpayers,” it said.

The DOF said at least 62 of 80 provinces, excluding the newly created Davao Occidental, use obsolete SMVs.

The most outdated SMVs still being used are 1985 (Maguindanao), 1992 (Basilan), and 1993 (Marinduque).

Provinces and cities, according to the DOF, are mandated to update their SMVs and conduct a general revision of property assessments and classification every three years.

The provinces found compliant in updating their SMVs are Abra, Agusan del Norte, Agusan del Sur, Benguet, Camarines Norte, Capiz, Catanduanes, Cavite, Cebu, Compostela Valley, Davao del Sur, Iloilo, Kalinga, Laguna, Lanao del Norte, Mt. Province and Negros Occidental.

North Cotabato, Northern Samar, Nueva Ecija, Nueva Vizcaya, Oriental Mindoro, Pangasinan, Rizal, Romblon, Siquijor, Sorsogon, South Cotabato, Surigao del Norte and Tawi-Tawi were also found to be compliant. – With Cecille Suerte Felipe