City Dad Eyes to Increase Real Property Tax

A neophyte Cebu City legislator is very willing to propose an ordinance increasing the tax rates for real property units like lands, buildings and machineries if the city really need more funds to support its projects.

Councilor Nendell Hanz Abella, a lawyer by profession and one of the six Team Rama members at the Cebu City Council, said the city shall comply with the provision of the law that there should be a revision of the tax rates for real property units in every three years.

Before Mayor Michael Rama left for Sabroza City in Portugal, Spain he said that it is not compulsory that the Local Government Units (LGU) will comply with the provisions of the law.

“Dili na compulsory uy,” the mayor said.

But Abella said the city should comply with what is provided for by the law, particularly if it will result to more projects that can benefit the public. The existing tax rates of the city for real property units was still approved in 2006.

Since that year, none of the city councilors who have the courage to propose for the revision of the tax rates because it can put them to bad light and probably they will lose in their reelection bid.

“Ako andam ko nga mangunay sa pagpahimo’g tax revision. Pasabton lang nato ang mga tawo kon ngano nga angay g’yud nga adunay revision sa atong tax rates sa mga real property units,” Councilor Abella said.

It was learned that Cebu City only imposes a 10 percent assessment level on commercial establishments, then 4.5 percent for agricultural land and two percent for residential lots.

Real property tax is one of the biggest sources of revenue for the city and the Bureau of Local Government-Finance (BLGF) said the real property tax can be considered as the lifeblood of all Local Government Units.

The law provides that in every three years, the schedule of fair market values of properties will be reassessed and the taxes are computed based on a lots’ market value per square meter multiplied by its assessment level depending on its use for residential, commercial or industrial purposes.

In Cebu City, however, the revenue collections from the real property taxes is much lower compared to the business tax collections.

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