Members of the Baguio City Council are considering the prospect of granting tax incentives or tax reduction to individuals whose properties have trees and are being maintained. The idea came forth during the council’s discussion last Monday regarding the taxpayers’ concern on the increase of real property taxes brought about by the implementation of the ordinance approving the schedule of market values in the city.
Seventy percent of the increase was applied in the first year of implementation of the ordinance (2021) while the remaining 30 percent will be applied in the second year (2022).
Based on the report of Almaya Addawe, the city assessor, only 5,767 properties had no change in the amount of the taxes they annually pay while the rest had a tax increase at varying rates. Most of these real property taxes increased by one percent to 300%. Some properties had a tax increase as high as 4,000-5,000% or even higher.
The city legislators expressed concern on the statement of Jeanine Chan, owner of Mountain Lodge, saying that the increase in real property taxes is forcing landowners to fell the trees on their properties and put up more commercial structures in order to recoup the money used for paying taxes.
Chan described the tax increase as “inequitable and exorbitant.”
Vice Mayor Faustino Olowan, Councilors Mylen Yaranon, Philian Weygan-Allan, and Joel Alangsab said one way of cushioning the impact of the tax increase is by incentivizing those who maintain trees on their properties. They likewise said this will help protect the remaining trees on private lands.
Meanwhile, Councilor Betty Lourdes Tabanda said she will push for other alternatives such as urging the Local Finance Committee to review the approved fair market values for possible reassessment of the valuation of properties based on their actual use. This will consequently reduce the taxes of individuals as portions of the land planted with trees will be assessed separately from the portions used for commercial purposes.
Addawe said the suggestions of the council members will be discussed with the Local Finance Committee. **Jordan G. Habbiling
