Herbert approves Quezon City tax hike measure

MANILA, Philippines – Quezon City Mayor Herbert Bautista has signed into law an ordinance increasing the outdated real property tax rates in the city.

Considered as a priority measure, Ordinance No. SP-2556 was approved by Bautista a day after the legislation was passed by the city council on Dec. 13.

The measure retained the 100 percent basic unit cost of real properties proposed by the city assessor, increasing land values by up to five-fold.

Actual real property taxes to be paid by business owners and residents will increase by 39 to 131 percent due to lower assessment levels.

Assessment levels for residential properties were reduced to five percent, and for commercial and industrial properties by 14 percent from the current 18 percent and 45 percent, respectively.

Earlier, Vice Mayor Joy Belmonte said the lower assessment level was among the revisions made by the city council after business owners and residents sought a staggered increase in real property taxes.

The law also provides for deductions of up to 20 percent in the computation of real property taxes of residents living in identified danger zones.

Real property tax rates in the city were last adjusted 21 years ago.

City administrator Aldrin Cuña said they expect to generate around P300 million in additional revenue from real estate taxes by next year.

Cuña said the tax collections would help fund infrastructure projects, drug rehabilitation and other social development initiatives.

Two other measures seeking to grant tax discounts to senior citizens and solo parents who are legitimate property owners have yet to be approved by Bautista.