CEBU, Philippines - Even when Cebu City Michael Rama said revising tax rates is “not compulsory,” ally and neophyte City Councilor Nendell Hanz Abella said he is willing to be the one to author an ordinance increasing real property taxes.
This, he said, he would do if the city really needs more funds to support its projects. Real property includes lands, buildings, and machineries.
Abella, a lawyer by profession and one of six Team Rama members at the City Council, said the city should comply with the provision of the law mandating that there should be a revision of tax rates for real property units every three years.
Before Rama left for Sabroza City in Portugal the other day, he said it is not compulsory for Local Government Units to do so.
But Abella said the city should comply with what is provided for in the law, particularly if it would result to more funds to finance projects that can benefit the public.
The city’s current tax rates for real property units were set in 2006 yet.
Since then, no city legislator risked introducing new tax rates as it would likely backfire on them come elections time.
“Ako andam ko nga mangunay sa pagpahimo’g (I am willing to introduce) tax revisions. Pasabton lang nato ang mga tawo kon ngano nga angay g’yud nga adunay (We just have to convince the public of the need for a) revision sa atong (in our) tax rates sa mga real property units,” Abella said.
Cebu City only imposes a 10 percent assessment level on commercial establishments, 4.5 percent for agricultural land, and two percent for residential lots.
Real property tax is one of the biggest sources of revenue for the city, with the Bureau of Local Government-Finance saying the real property tax can be considered as the lifeblood of all LGUs.
In Cebu City, however, revenue collection from real property taxes is much lower compared to the business tax collections.
The law provides that in every three years, the schedule of fair market values of properties will be reassessed and the taxes are computed.
The computation should be based on market value per square meter multiplied by the assessment level depending on whether the use is for residential, commercial or industrial purposes. (FREEMAN)