An aerial shot of Cebu South Coastal Road at the South Road Properties. | CDN Digital drone photo
CEBU CITY, Philippines – Plans to revise the fair market value of properties in Cebu City, along with the adjustments in real property tax (RPT) calculations, should already be complete by March, Mayor Michael Rama said.
Rama said that he has long communicated the need to already work on the matter to members of the Cebu City Council.
“No ifs, no buts. It has to be within the month of March… Ang pinaka importante, let us approve the revised real property taxation. Mag-una gyud na’ng real property taxation, [any other] amendment will follow,” Rama said in his “Ing’na Mayor” teleradyo program aired via the Sugboanon Channel on Tuesday, February 27.
ALSO READ: Cebu City gov’t says RPT revision in compliance with law
Last February 21, Councilor Jocelyn Pesquera submitted a draft ordinance pushing to incorporate the fair market value of properties at the South Road Properties (SRP) into Cebu City’s Tax Code.
If this is passed, the base market value of properties at the SRP will be pegged from P45,000 to P60,000, depending on the lot classification.
Rama said he does not see anything wrong with Pesquera’s initiative to already update the value of SRP lots and incorporate this into the city’s Tax Code.
Adjusted RPT
However, Rama said, he wanted the revision of existing fair market value and adjusted RPT calculations prioritized. The introduction of new ideas, he said, would only further delay the approval of the proposed revisions to the Tax Code.
ALSO READ: Rama wants new real property tax revision to take effect in 2024
“Wa ko’y problema ana [proposal of Councilor Pesquera]. I have no problem. Unahon nato na’ng ga-una, unya isunod nato ang inyoha,” he said.
Rama said that there is a need for clarity and alignment between the executive and legislative departments at City Hall.
A move was already made in 2022 to amend the Tax Code to especially update the city’s RPT rates. But Rama vetoed the amendatory ordinance that the Council passed in the first quarter of 2023, saying that the expected revenue from said endeavor was not enough to fund his P50 billion budget request for the year.
On July 6, 2023, the Local Finance Committee (LFC) introduced a new model for updating the RPT and business tax rates in the city.
ALSO READ: Real property tax rates in Cebu City has new model, pushed at City Council
If approved, the amendments to the Tax Code may already be implemented starting July 1.
Rama said this is going to be the first significant update to city’s property assessments since 2006.
Currently, tax collections remain disproportionately low due to outdated assessment values that fail to reflect the transformation of SRP and other business districts into thriving economic zones.
The SRP has become a host to various projects as a result of significant deals with developers such as Filinvest Land Inc., SM Prime Holdings, and Ayala Land, Inc., among others. /with reports from Cebu City News and Information