RPT exemptions for family homes worth P300K or less pushed in Cebu City
CEBU CITY, Philippines — Owners of land and structures value at P300, 000 or less will no longer be asked to pay real property taxes (RPTs) if the Cebu City Council approves a draft ordinance by Councilor Eugenio Gabuya, Jr. that proposes tax exemption for properties that are occupied by families.
Gabuya’s draft measure, which he presented to the legislative body during their regular session on February 18, 2020, is now pending with the Council’s committee on laws and ordinances for review.
“The purpose of this ordinance would be to add more face to the expressed recognition of the 1987 constitution of the sanctity of family life that needs to be protected and strengthened, being the basic autonomous social institution,” said Gabuya, a member of the Bando Osmeña Pundok Kauswagan (BOPK).
The ordinance proposes tax exemption for residential structures that are jointly owned by a married couple of those that are owned by an unmarried head of the family or the “the dwelling house where they and their family reside and the land on which it is situated.”
However, exemptions will only be granted on properties with upraise values that do not exceed P300, 000. Properties that are worth more will only be allowed an exemption for the same amount.
A property valued at P500, 000, for example, will only be granted an exemption for its P300, 000 value. Corresponding tax value will already be computed for the remaining P200, 000.
RPTs are computed based on the assessed value of the properties. The city government imposes RPT which represents one percent of the property’s current market value.
RPT assessment covers land, structures, and machinery.
Laywer Jerone Castillo, the city treasurer, is asking legislators to carefully study Gabuya’s proposal and determine how its implementation will affect the city’s revenue generation.
He said RPTs represent one of the city’s biggest revenue sources.
“Since the proposal has impact and on the city’s regular source of funds, the same should be submitted to the local finance committee for study and evaluation. We will create a technical group to study this proposal,” said Castillo said in a text message to CDN Digital.
Administration Councilor Raymon Alvin Garcia, the chairperson on the council’s committee on finance, said that Gabuya’s proposed ordinance will be made to undergo a thorough review.
“We need more data for this,” said Garcia. / dcb
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