CEBU, Philippines — The revised Real Property Tax (RPT) rates of Cebu City, when approved, will vary per area and will not have a uniformed increase.
This was clarified by Cebu City Councilor Noel Wenceslao, author of the revised RPT ordinance, following its second public hearing yesterday, October 19, 2023, of the 'Ordinance enacting the 2023 Revised Property Tax Code for the Taxing Jurisdiction of the City of Cebu.'
According to Wenceslao, various stakeholders and developers in the city were invited to appear during the hearing. Echoing the discussion, Wenceslao said that among those raised during the hearing is the impact of the revised RPT in which some have shown a huge leap of up to 3,000 percent.
"Generally, wala man silay question sa Fair Market Value, ang ila lang naa man guy impact, dakong impact, we have to emphasize, usahay man gud mahadlok ang uban nga ang increase kuno maabot og 3,000 (percent)," said Wenceslao.
"But that's not across the board, naa ra'y ubang areas nga dako kaayog increase, naa sa'y areas nga ang increase niya like in Binaliw, ang increase is only 54 percent," Wenceslao explained.
He said is hopeful that the public hearing clarified the assumption that the revised RPT uniformly will rise to 3,000 percent adding that generally, there is no increase in terms of RPT rates, assessment level, but rather on the Fair Market Value (FMV).
Wenceslao has previously explained that the basis of the revised RPT is the FMV that is determined by the opinion of the appraisers and other stakeholders. He said that this could be based on recent sale records in the property.
Further, the city assessor will schedule the FMV based also on the opinions of the appraisers and the stakeholders.
Wenceslao, however, explained that the reason that the FMV has increased is because the tax code hasn't been revised since 2006. Among those that Wenceslao has cited is the FMV of Brgy. Binaliw, which was established at P1,000. With the proposed revised RPT, their FMV will be at P1,500, which will be the basis for the higher RPT rate.
But for big properties such as Cebu IT Park, it will make a huge difference. Wenceslao said IT Park’s FMV is at P6,000, which was established when the property wasn't even developed yet. "2006, wa pa may IT Park. Limpyo pa man na dira, mao pa ma’y pag-bulldoze atong old airport sa una. Gilimpoyhan pa man to, so P6,000 pa to," said Wenceslao.
With the revised RPT, the FMV of IT Park will soar to P200,000, adding that the area is now developed and highly-commercialized.
"So dako gyud kaayo ang impact sa FMV from 2006, that's why nga bug-at kaayo nila," he said.
He, however, added that they will be reviewing the proposed FMVs to ensure that the amount established is justifiable.
In line with this, during the hearing, property owners raised a plea to allow them to pay the increase on a 'staggered basis' in which Wenceslao said they are willing to study and evaluate.
"We also have to consult the other councilors and other executive departments, maghimo tag Bicameral Committee," said Wenceslao.
With the wrapping up of the second public hearing, the said ordinance will now proceed to a Special Public Forum that will be participated by property owners and stakeholders. (CEBU NEWS)