Rama to Study City Assessor’s Proposal

Mayor Michael Rama is bent on further studying the proposal to increase the rate of real property taxes in order to collect more revenues to be spent for various projects.

“Dili ta magdali-dali paghukom ana, ato g’yud na nga lingkoran usa kay dili ra man ang pag-increase sa buhis maoy paagi nga mosaka ang atong koleksyon,” Rama told MetroCebuNews.

City Assessor Eustaquio Cesa is expected to submit to the mayor his proposal to increase the rates for real property taxes because the last general revision of taxes was still in 2006.

“Bitaw kinahanglang dili na mahadlok ang mga opisyal nga mohimo’g revision sa tax rates kay human na ang eleksyon,” an employee of the City Treasurer’s Office said.

Cesa said there is a need to increase the existing tax rates for the real properties which should have been implemented years back but was just taken for granted.

The law allows general revision of real property tax rates every three years, but it was not done in 2009 because the 2010 local and national elections were approaching. It also did not materialize in 2012 because of the approaching election last May 13.

Section 218 of Republic Act 7160 or the Local Government Code provides that the assessment levels to be applied to the fair market value of real property to determine its assessed value shall be fixed by ordinances of the City Council, although there is a limitation of the rate.

The law allows a local government unit to collect up to 20 percent tax rate of the assessed market value of lots that are used for residential, 20 percent for agricultural, 50 percent for commercial and industrial.

But at present the city is still implementing a two percent tax rate to be computed to the assessed market value of the lands, buildings and machineries.