Cebu City Councilor Rey Gealon. (File Photo)
CEBU CITY, Philippines — A local legislator is proposing to delay a new real property tax law here.
Councilor Rey Gealon, head of the laws and styling committee, supports revising the ordinance to match a recent national law aimed at creating a fair property valuation system.
During his privileged speech on June 19, Gealon emphasized the need to adjust the ordinance in line with the Real Property Valuation and Assessment Reform Act (RA 12001), which aims for a just and efficient property valuation system.
Gealon said that the City Council has extensively debated the proposed ordinance, first introduced by Councilor Noel Wenceslao in 2022. Despite multiple discussions and an initial approval on December 30, 2022, the ordinance was vetoed by the now-suspended Mayor Michael Lopez Rama.
Rama argued that the ordinance did not accurately reflect property values and would deprive the city government of necessary funds.
In a veto letter dated February 6, 2023, Rama described the ordinance as harmful to public welfare and “ultra vires.”
He again called for a revised ordinance in March 2023, urging the council to adjust it to reflect fair market property values in Cebu City. The recent enactment of RA 12001 by President Ferdinand Marcos, Jr. on June 13, 2024, introduced changes to the real property valuation system.
The law aims to standardize and improve property valuation and assessment across the country, aligning with international standards.
Key provisions include adopting Philippine Valuation Standards based on International Valuation Standards, separating technical valuation from local political taxation, and transferring approval of Market Values from local councils to the Finance Secretary.
Additionally, the Bureau of Local Government Finance is being reorganized to set up Real Property Valuation Service and Units in each LGU, promoting full automation of real property systems.
The law also limits real property tax increases to 6 percent in the first year and grants amnesty for unpaid taxes within two years of its effect.
READ: Councilor on revising real property tax ordinance: Consider the plight of businessmen, taxpayers
The potential impact of the Real Property Valuation Act
Gealon noted that the new law supersedes Wenceslao’s proposal, making some provisions incompatible.
He urged colleagues to defer further discussions and public hearings to revisit the ordinance and ensure compliance with the new legal framework.
Gealon clarified that his call for deferral does not reject Rama’s plea for a revised real property tax ordinance but underscores the need to uphold the rule of law.
“Let me be clear with this, I am not proposing the rejection of the call of Mayor Rama for this City Council to pass a revised real property tax ordinance. Instead, I am merely echoing his oft-repeated reminder that ‘the rule of law has to be respected’. R.A. 12001 is a new law that has to be respected. After all, we are a government of laws and not of men,” Gealon concluded.
Meanwhile, in an interview with Wenceslao on June 21, he said that the newly enacted law was a “good move” from the national government since a uniform base unit value will be implemented by the Bureau of Local Government Finance (BLGF).
When asked about the possibility of the LGU passing an amended RPT ordinance, Wenceslao said that it could be possible since only the base unit value is fixed by the national government.
“There is also a possibility nga there will be an amendment of an ordinance nga pwede nato i-staggered ang implementation for the RPT. So mao na’y mahitabo,” Wenceslao stated.
Wenceslao clarified that even if a fixed base unit value had already been enacted by the national government, the LGU could still lower or higher the assessment level as written in his revised ordinance.
He also explained the difference between the base unit value in his draft and the base unit value set by the national government which is still not in his knowledge since the national government hasn’t set it yet.
“Di pa gyud ta kahibaw because number 1, sila ma’y mu-set unya wa paman sila ka-set og base unit value. So, I’m sure there will be a difference in trends of base unit value as far as gi-set sa national og kato’ng gi-set namo as proposed in the RPT ordinance. Wala pa man sila mu-set,” Wenceslao said.
Wenceslao fully agreed and said he was open to revisiting his previously drafted ordinance to align with the newly enacted law. /clorenciana