Vice Mayor Faustino Olowan has proposed amendatory ordinance seeking to correct inconsistencies in the city’s tax code by clearly defining the scope and application of discounts on real property tax payments in order to align local provisions with the Local Government Code and its implementing rules.
The proposed measure amends Section 106, Chapter XV of Tax Ordinance No. 2001-01, as previously modified by Ordinance Nos. 2005-003 and 2006-001, following findings by the City Treasury Office of inconsistencies between the existing local provisions and the Local Government Code and its Implementing Rules and Regulations.
Under the amendment, a 20% discount will be granted to taxpayers who pay in advance the current basic real property tax and the additional tax for the Special Education Fund (SEF) in full for the entire year before January 1. This provision clarifies both the taxes covered by the incentive and the specific period for availing the higher discount.
The ordinance further provides that taxpayers who settle the same taxes in full from January to March will be entitled to a 10% prompt payment discount, standardizing the incentive for early payment within the first quarter of the year.
For those opting to pay through quarterly installments, the amendment likewise allows a 10% prompt payment discount on the amount due, provided payments are made on or before the prescribed quarterly deadlines, encouraging timely compliance while accommodating staggered payment arrangements.
Olowan said the proposed amendment is intended to remove ambiguity in the implementation of real property tax discounts, ensure uniform application by the City Treasury Office, and provide clearer guidance to taxpayers on how and when incentives may be availed. This move improves compliance and efficiency in real property tax collection, he added.
The proposed ordinance was approved on first reading by the Baguio City Council on January 26, 2026 and referred to the Committee on Appropriations and Finance Cluster A for review. **Jordan G. Habbiling
