Wednesday, December 05, 2007 PB okays hike in real property taxes
THE Cebu Provincial Board (PB) yesterday approved an ordinance setting the new schedule of fair market value of real properties in the province.
This means that owners of real properties will pay higher realty taxes by 2009.
With the recent conversion of three towns into component cities, the Cebu Provincial Government saw the need to implement the increase, as it already anticipated that its realty tax collections will go down.
This is because the cities of Naga, Carcar and Bogo will no longer remit taxes to Capitol.
Thus, the governor requested the PB to pass an ordinance increasing the fair market values of real properties in the province.
The Local Government Code allows local government units to make an adjustment of the fair market value of real properties every three years. But it has been seven years since the Province came up with a general revision of the market values’ assessment.
Gov. Gwendolyn Garcia had said that the increase in fair market values, which was supposed to be implemented years ago, was suspended to cushion the effect of the economic crisis.
But now that the economic indicators have been consistently positive, Garcia said it is also time to implement the increase.
The approved new schedule of values has increased the base value of real properties by an average of 50 percent and this will be implemented in 2009.
Garcia had said that higher tax collection will mean more resources that will be translated into basic services.
Once the new schedule of values is implemented, the assessed value of the real properties of the Province will go up to P19.5 billion and Capitol expects to earn some P400 million in real property taxes annually.
Provincial Assessor Anthony Sususco said that before the conversion of Naga, Carcar and Bogo into cities, the total assessed value of properties of the Province was P14 billion and P280 million in taxes were expected to be generated from these properties.
Because of the conversion, the Province lost some P1 billion worth of properties and some P20 million in taxes.
The ordinance on the new schedule of values was approved yesterday, the PB’s last session for the year.
Vice Gov. Gregorio Sanchez said they moved the session yesterday instead of holding it on Monday because several PB members had appointments to attend. (MBG)
