Wenceslao asks new City Council to approve revised RPT ordinance

CEBU, Philippines — Councilor Noel Wenceslao is requesting the new set of  Cebu City Council to continue working on the revision of the Real Property Tax (RPT) Code.

Wenceslao, whose term as councilor will end on June 30, said updating the RPT Code would increase the city's revenue collection.

The revision of the city’s RPT has been among the most highly disputed and closely watched ordinances since it was first introduced by Wenceslao, who chairs the Committee on Budget and Finance.

The code hasn’t been revised since 2003, and possible changes may result in a surge of tax rates in some areas—up to 1,000 percent.

Wenceslao, however, said that the proposed RPT revision needs a complete overhaul since its provisions have already been superseded by the Real Property Valuation and Assessment Reform Act (RPVARA), which has been signed into law.

He explained that the revision will now rely on the recommendations of the Bureau of Local Government Finance (BLGF). He added it no longer needs to follow what is outlined by the local city assessor, particularly regarding the market value of RPT, from which new tax rates will be derived.

“Pananglitan taas ra jud kaayo (BGLF recommendation) then what the council can do is paubsan nila ang assessment level,” said Wenceslao.

He added that with the RPVARA Law, the council will no longer be burdened with determining market value, as this will now come from the BLGF.

Wenceslao cited an example in the proposed revision he lobbied for, which affected the South Road Properties (SRP), with a surge of at least 1,000 percent—from a rate of P12,000 to P100,000.

He said the council can make adjustments to lessen the impact on taxpayers.

“They (new council) have to balance,” said Wenceslao.

He added that the impact of the surge will heavily affect taxpayers once the RPVARA Law is implemented in two years’ time.

In line with this, Wenceslao said that he is set to coordinate with the next councilor who will take over the initiative he started.

“I am very much willing to sit down with thembpara makahatag sad ko'g inputs based on what I learned,” said Wenceslao.

Wenceslao said he remained hopeful that the revised RPT will be implemented in the City of Cebu, adding that the city has gone too long without a revision, leaving tax rates untouched and low. 

“The more nga magkadugay ta nga way revision magdako ang problema nato because ang gap sa previous mga revision ug karon nga revision because of the surge,” said Wenceslao.

He said the sudden surge in RPT rates has become their biggest hurdle, drawing opposition from developers and other property owners.

He added that, by law, the city’s RPT rates should be revised every three years.

He also said that the Cebu City Government is mandated to impose the new RPT rates, adding that it is the lifeblood of development.

On December 30, 2022, the council approved the first version of the proposed ordinance, which was vetoed by then mayor Michael Rama, who claimed it did not reflect the true values of the properties and deprived the City Government of a proper source of funds.

“Sayang ta to kay na approved na unta to sa council….naabtan man mis RPVARA,” said Wenceslao.

In March 2024, Rama reiterated his call for the City Council to pass the revised real property tax ordinance, this time, aligned with the most recent and updated fair market value (FMV) of the city's real properties.

The most recent deliberation was held on April 3, 2024, and served as the second reading.

However, on June 13, 2024, President Ferdinand Marcos Jr. signed into law the RPVARA, which aims to standardize, streamline, and enhance the country’s valuation and assessment of real property through a uniform appraisal aligned with international standards.

The law is now known as Republic Act (RA)  12001. It further explained that R.A. 12001 "adopts and standardizes" a system of valuation for real properties by utilizing the prevailing market value as the single valuation base for real property tax assessment, in accordance with international standards.

“Ang ako lang, kinahanglan nga maayo nga it should be implemented and naa tay political will to do it,” said Wenceslao. (CEBU NEWS)