A CEBU City councilor is pushing for a measure that will exempt owners of family homes in the city from paying real property tax (RPT).
Councilor Eugenio Gabuya Jr. on Wednesday, Feb. 19, 2020, filed a draft ordinance entitled “An Ordinance Exempting Family Home from Payment of Real Property Tax in Cebu City.”
The proposed legislation defines family homes as those “constituted jointly by the husband and the wife or by an unmarried head of a family; the dwelling house where they and their family reside and the land where it is situated.” The official, though, said the tax exemption will be granted only if the owner actually resides in the real property.
Section 4(a) of the ordinance also provides that the tax exemption will be granted if the current and fair market value of the property does not exceed P300,000.
Section 4(b), likewise, provides that “if the current and fair market value of the family home exceeds P3,000, only the first P3,000 shall be exempted from the payment of RPT.”
The excess, on the other hand, shall be subject to the existing RPT rate.
Gabuya said the legislation would “uphold the sanctity” of a family.
Lawyer Jerone Castillo, City Treasurer’s Office officer-in-charge, said the “family home” needs to be defined further since there are several family homes in the city.
He added that a family home may refer to condominiums and apartments, among others.
Castillo said the matter needs “technical and critical discussion” with the RPT being a major contributor to the City Government’s income.
“This is a good measure, but we just have to study it more, have to undergo technical discussion so the City’s income will not be affected,” he added.
The City Council has referred Gabuya’s ordinance to the committee on laws for review. (JJL)