Landowners in Talisay may soon pay extra tax

CEBU, Philippines - If the proposed measure on Socializing Housing Tax will be approved at the city council, the landowners in Talisay City will be shouldering a new tax that will fund housing projects for the poor.

This as City Councilor Dennis Basillote wants the city government to collect an additional 0.5 percent on tax that will be used for the socialized housing programs and projects of the city, specifically for the marginalized sector, through the acquisition of properties for human settlements.

"The imposition of additional tax is intended to provide the city government with sufficient funds to initiate, implement and undertake socialized housing projects and other related preliminary activities," said Basillote, who belongs to the minority bloc in the council.

Section 43 of  Republic Act No. 7279, otherwise known as the Urban Development and Housing Act (UDHA) of 1992, provides that "consistent with constitutional principles that the ownership and enjoyment of  property bear a social function and to raise funds for the program, all local government units are authorized to impose an additional one-half percent tax on assessed value of all lands in urban areas in excess of P50,000."

The Department of Finance issued Local Finance Circular No. 1-97 dated April 10, 1997 setting guidelines for the implementation of Section 7, 20 and 43 of Republic Act No. 7279 and to supplement Local Finance Circular No. 3-92 dated September 11, 1992.

Under the proposed ordinance, a special assessment equivalent to one-half percent on the assessed value of all lands in excess of  P80,000 shall be collected by the city treasury, which shall accrue to the socialized housing programs of Talisay City.

The special assessment shall go to the city's trust fund on socialized housing.

The city government shall then utilize SHT for one or a combination of the following projects: land purchase/land banking; improvement of current/existing socialized housing facilities; land development; construction of core houses, sanitary cores, medium-rise buildings and other similar structures and financing of  public-private partnership agreement of the city and National Housing Authority and other agencies similar to that purpose, with the private sector.

The proposed ordinance also provides a re-inventory of all lands and improvements in the city, which will be conducted by the city assessor's office, together with the Housing and Land Use Regulatory Board within 180 days from implementation.

This shall include residential lands; government-owned lands, whether owned by the national government or any of its subdivisions, instrumentalities, agencies, including government-owned or controlled corporations and their subsidiaries; unregistered or abandoned and idle lands and other lands.

In conducting the inventory, the city assessor, in coordination with the Housing and Land Use Regulatory Board and with the assistance of the appropriate government agencies, shall indicate the type of land used and the degree of land utilization, and other data or information necessary to carry out the purposes of the ordinance.

The city assessor shall furnish the treasurer's office and the Sangguniang Panlungsod the list of lands to be affected by this ordinance.

It is indicated under Section 6 of the ordinance that the effectivity of the special assessment imposed shall be for a five years.  (FREEMAN)