CEBU CITY Mayor Michael Rama urged the City Council to pass in March 2024 the ordinance that will update the schedule of fair market values (FMV) and mark the adjustment of real property taxes (RPT).
Rama made the remarks during episode of the “Ingna’ng Mayor” segment of the Sugboanon Channel of the Cebu City Government on Tuesday, Feb. 27.
“Within the month of March. That is what I have been telling them already. No ifs no buts. It has to be within the month of March,” he said.
He said he has no problem with the proposal of City Councilor Jocelyn Pesquera to include the South Road Properties (SRP) in the updated RPT Code after she discovered that the area is not part of the existing code.
“Wa ko’y problema ana. Unahon nato na’ng gauna, unya isunod nato ang inyoha (I have no problem with that. But let’s deal with what came first, then we deal with your proposal),” Rama said. “It can be done, but I am telling them, this is the direction of the executive, let’s all be clear.”
Pesquera, vice chairperson of the committee of the budget and finance, suggested an amendatory ordinance during the council’s regular session last Feb. 21 to incorporate the FMV of the SRP into the existing RPT Code.
If approved, the schedule of base unit market values in SRP will range from P45,000 to P60,000, depending on the lot classification. It will also significantly increase the income of the City Government.
On the other hand, Rama urged City Councilor Noel Wenceslao, chairman of the budget and finance committee, together with the rest of the Local Finance Committee to take charge in defending the proposed new RPT Code.
He added that if needed, he would appear before the council to defend the revised real property taxation.
On Feb. 14, Wenceslao announced that he had the final draft of the new RPT ordinance.
Wenceslao pointed out the necessity of a gradual rollout of the FMV, citing potential hardships for property owners.
Basis
The FMV is the basis for the computation of the RPT due.
Business entities and property owners have expressed opposition to the new RPT Code, as the adjustment is abrupt and high without any consideration to its economic impact to the city.
In a text message on Tuesday, Feb. 27, Wenceslao told SunStar Cebu that he has to meet with the majority of the council to determine the possibility of the measure.
SunStar Cebu asked Wenceslao if the council can pass the new RPT by March. He has yet to reply.
SunStar Cebu also sent text messages to Pesquera and Vice Mayor Raymond Alvin Garcia for comment, but to no avail.
Rama has been vocal on the passage of the new RPT code, as the last time the City Government revised its property assessment was in 2002 yet.
The Local Government Code allows a local government unit to revise and update the RPT to reflect the FMV.
Rama vetoed in February 2023 the revised RPT code that the council passed, citing that it would not be enough to help the City generate funds to meet the P50 billion budget in 2023.
By updating Cebu City’s RPT Code, the City sought to raise P10 billion to P15 billion in revenue. This, as it looked for ways to help fund the mammoth annual budget, which was a 450 percent leap from the City’s P9 billion annual budget in 2022.
As of last October, the City was only able to collect a gross amount of around P7.5 billion, which left most projects and programs unfunded or postponed. / EHP