Rama wants new real property tax revision to take effect in 2024
Cebu City Hall
CEBU CITY, Philippines — Cebu City Mayor Michael Rama is still keen on updating the real property tax rates here even after scrapping the recently approved ordinance that would allow them to levy higher taxes.
During a press conference on Monday, Feb. 13, Rama said his administration aimed to implement the revised real property tax rates, which their administration had been working, by 2024.
“If it were up to me, kagahapon pa unta na reintroduce (If it were up to me, I would have reintroduced this yesterday),” the mayor told reporters, referring to their plans in coming up with a new model for updating real property taxes.
The city government has yet to come up with a specific date for reintroducing its new proposal but announced that its Local Finance Committee will be leading its formulation.
Rama last Sunday, Feb.12 vetoed City Ordinance No. 138 – 2022.
On Monday’s briefer, he explained that he disagreed with the provisions it contained. Rama said the rates found on the ordinance did not reflect ‘fair and current market value’, adding that it also violated the Local Government Code.
“Dili siya suited on what is the current (and fair market value). Kung di siya suited on what is the current (value), kinsay alkanse ana? Kitang tanan,” he said.
(It is not suited on what is the current (fair market value). If it is not suited on what is the current (value), who will lose money on that? All of us.)
After a series of discussions and revisions, the City Council approved Ordinance No. 138-2022 last January.
However, it adopted new real property tax rates, instead of those the Rama administration suggested following calls from legislators, who deemed them ‘excessive and oppressive.’
In the now-vetoed ordinance, commercial, industrial, and special lots will have an assessment level of 10 percent while residential ones will have two percent. Agricultural lots will have an assessment level of 4.8 percent.
Ordinance No. 138-2022 was supposed to be implemented in two phases, starting this 2024, a measure the council drew to cushion its impact on constituents.
On the other hand, Rama stressed that the city government needed to ‘revise and update’ its real property taxes as soon as possible. Otherwise, they would be deprived of funds to ensure uninterrupted delivery of basic services and programs.
“It’s not about increase. No, what we’re making is the revision, in accordance with the law. And it (updating real property tax rates) has been ignored because of fear and we have to do it now – now or never,” he added.
It can be recalled in 2022, Rama’s administration unveiled their plans of ‘updating’ the real property tax rates here as one of their sources for the P51-billion budget for this year.
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