10% hike in real property tax starts Jan. 20

CEBU, Philippines — The 10 percent increase of the real property tax in all the 44 municipalities in the Province of Cebu is set to take effect on January 20, 2023.

The Provincial Board earlier approved on second reading of the proposed ordinance on the effectivity of the new Schedule of Market Values (SMV) on July 1, 2023.

However, acting Provincial Assessor Michelle Languido made an appeal to change the effectivity earlier.

Republic Act 7160, otherwise known as the Local Government Code of 1991, provides that the Provincial Assessor shall undertake a general revision of real property assessments every three years.

In a letter dated December 9, 2022 addressed to the Sangguniang Panlalawigan, Languido said the last general revision in the Province of Cebu was made three years ago in 2019.

“In this regard, may I humbly advise this Honorable Body to place the effectivity of the new Schedule of Market Values on 1 January 2023 in the interest of efficiency, consistency, and uniformity,” Languido said.

This prompted the PB to reconsider what had earlier been stated in the proposed ordinance sponsored by Board Member Glenn Anthony Soco.

The ordinance Adopting The Schedule Of Market Values Of Real Properties Particularly On Land For The 2023 General Revision was finally passed on December 19, 2022 during the PB’s last regular session for the year.

But it shall take effect on January 20, 2023 after its publication in a newspaper and posting required under Section 511 of RA 7160.

This Schedule of Market Values of Real Property shall be the basis of the general revision of assessments and property classification within the territorial jurisdiction of Cebu Province for the 2023 General Revision and thereafter unless amended or repealed.

Governor Gwendolyn Garcia had earlier ordered the assessment of all real properties in the Province of Cebu.

Garcia issued Executive Order (EO) 37 on September 23, 2022 which seeks to “rationalize” the assessment, issuance, cancellation and reissuance of tax declarations on real property and improvements within the territorial jurisdiction of the Province of Cebu.

According to the governor, it has been observed that some real properties have not yet been recorded by Cebu Province.

Some of these real properties and improvements, she added, have not been assessed of their current and fair market values nor issued the corresponding tax declarations due to their land classification as part of timberlands, forest lands, wilderness area or no build zones.

Garcia said there is a need to make an update and revise the current market value of these real properties in accordance to the real property tax assessment rules under the Local Government Code.

Furthermore, all real properties within the jurisdiction of a particular local government unit must be appraised of the current market value, "whether taxable or exempt,” she said.

With this, all the municipal assessors are mandated to assess the real properties within their areas of jurisdiction, notwithstanding the land classification or location of these properties.

Once the assessment is completed, the assessor is mandated “to issue the corresponding tax declaration to the declared owner, indicating therein that the issuance thereof does not necessarily vest ownership rights over the said property.”

As to the transferees, the municipal assessor will also have to issue tax declaration, regardless of the property's classification as part of timberland, forest lands, wilderness areas or no build zones, since the purpose of this is for the real property tax assessment.

Since 2019, when Garcia assumed again as governor of Cebu Province, she has been prioritizing the reassessment and appraisal of the Capitol's properties.

Under the latest report from the Commission on Audit, the Province of Cebu remains the wealthiest province in the country in terms of assets. – JMD (FREEMAN)