Quezon City will start collecting real property tax based on the 2017 schedule of fair market values this year. The contentious issue has been on ice for the past five years due to legal challenges and a desire by the local government to offset the inflation many residents were facing in recent times.
“Beginning with the taxable year 2023, we will use fair market values for various classes of real property as defined in Ordinance No. SP-2556, Series of 2016, which was passed in 2016 and was applied until 2017,” Quezon City Treasurer Edgar Villanueva was quoted as saying by The Manila Times.
At first, collection was delayed by the Supreme Court when a homeowners’ organization petitioned the ordinance’s legality. That was settled in 2018, but the suspension remained as the Quezon City government was concerned about the impact it would have on the population who were already facing inflation created by the Tax Reform Acceleration and Inclusion (Train) Law.
Villanueva stressed that this was not a tax increase with the 2017 fair market values having been in place for some time now. Those who pay their real property tax before March 31 will receive a 20 percent discount.
Baguio looks to delay scheduled real property tax increase
A scheduled real property tax increase in Baguio could be delayed after the City Council passed a resolution asking Mayor Benjamin Magalong to not implement it as planned. Local officials have said raising real property taxes this year would add to the burden owners currently face and create potential issues for those who rent homes as well.
Increase of the tax, which is based on fair market value, is laid out under the Schedule of Market Values for Land in the City of Baguio. It covers all types of real estate, including commercial and residential. With the economy still recovering in the aftermath of COVID-19, the City Council believes now is not the time for the tax hike.