DAVAO CITY – The City Council on Tuesday approved on third reading amendments to the Real Property Tax (RPT) Code, which could raise P326 million increase in real property tax collection if fully implemented.
The amendments came after 12 years that the city never made any changes to the real property tax ordinance. The amendments included the four per cent increase for residential; 9.5 per cent in agriculture; 11 per cent for commercial, and 25 per cent in mineral, industrial and timberland industry.
The approved amendments were lower than the proposed increase of the City Assessor’s Office (CAO) which recommended an increase of five per cnet for residential; 10 per cent for agricultural, and 12 percent for commercial.
New investors in the city were also subjected to two years exemption of RPT as part of the city’s way to attract investors.
Committee on Finance, Ways and Means chair Councilor Danilo Dayanghirang said the city council considered the status of the Dabawenyo taxpayers in increasing real property taxes.
“The basic principle here is affordability. We considered the situation of the Dabawenyos if we will impose big increase in their real property tax,” he said.
Dayanghirang said the increase on the real property tax will be split into three. On first payment, taxpayers will pay one third of the increase; two thirds on the second payment while a full payment on the third payment will be imposed.
“We split it into three so that the Dabawenyos can adjust on the increase,” he said. The amendments of RPT were supposedly done every five years. The last amendment was made in 2005.
The RPT amendments are still subject for approval of the Department of Finance (DOF).
“We are very confident that the Department of Finance will approve our RPT increase proposal without amendments,” Dayanghirang said.
The amended Real Property Tax is expected to be implemented on 2019 after the approval of Finance Secretary Carlos Dominguez III. (Funny Pearl Gajunera/PNA)
* Stay at Home and START YOUR OWN blog site, business or personal website, or e-commerce store at
www.wirenine.comLinkback:
https://tubagbohol.mikeligalig.com/index.php?topic=106025.0
