City to implement real property tax hike in ‘21
After two long decades, a “slight tweak”.
City Assessor Maria Almaya C. Adawe, July 13, said the Baguio City government shall be implementing Ordinance No. 16, Series of 2020 revising the schedule of market values for real property in 2021.
This, after twenty years of public consultations and revisions paving way for the City Council approval of the city’s new tax measure last February 3.
Despite the revised schedule of market values, however, Adawe said Ordinance No. 16, Series of 2020 affects only lands.
The schedule of market values for buildings under Ordinance No. 101, series of 1995; and, the assessment levels for buildings and machineries under Tax Ordinance No. 2000-001 remain.
Section 219 of the Local Government Code of 1991 provides, “The provincial, city or municipal assessor shall undertake a general revision of real property assessments within two (2) years after the effectivity of [the Code] and every three (3) years thereafter.”
Still, Adawe said implementation of the increase in taxes shall be staggered over a 2-year period, such that, 70 percent of the increase will be applied in 2021 while the balance of 30 percent will be applied in 2022.
Under Ordinance No. 16, lands shall be valued according to the approved schedule of market values; and, assessed on the basis of actual use.
On one hand, lands used for more than one purpose shall be assessed on the basis of its principal use. On the other hand, recreational lots shall be assessed as commercial.
Meantime, industrial lots shall assume the value of commercial lots in the same area or its immediate vicinity; and, shall adopt the assessment levels over commercial lots.
Agricultural lots shall assume the value of commercial lots in the same area or its immediate vicinity; and, shall also adopt the assessment level of commercial lots.
Moreover the ordinance provides, memorial parks shall be valued based on the unit value assigned to the area where they are located and it shall be assessed as commercial and taxable under the name of the owner or developer.
However, burial lots sold and fully paid by buyers and those already used for the purpose it is intended for shall be exempt.
Golf courses shall be valued based on the schedule plus development costs; and, shall be assessed as commercial. The easements thereat shall be appraised on the estimated cost of paving, cementing and asphalting.
For purposes of real property taxation, the same shall be assessed based on the approved schedule.
Finally, raw land shall be valued at 50 percent of the corresponding unit in the area. A vacant lot located in a purely residential area shall be classified, valued and assessed as residential.
If the lot is located in a purely commercial area, it shall be classified, valued and assessed as commercial.**Dexter A. See