Vol. XXII, No. 105 [ BusinessWorld Online ]
Friday, December 19, 2008 | MANILA, PHILIPPINES
PLAYING CATCH-UP with neighboring Makati, Taguig has hiked property values for its business district and some residential areas by as much as five times in a bid to raise up to P100 million more in realty tax collections annually.
DEVELOPMENT is rapid at Fort Bonifacio.
Taguig officials said fair market values had to be adjusted as the city has been imposing the lowest tax rates in Metro Manila for the past seven years. More money is also needed, they said, to extend services in booming Fort Bonifacio and other areas.
The new values, effective January, reflect "correct" levels particularly in Fort Bonifacio, Taguig Mayor Freddie R. Tiñga said.
"Our assessment schedules are now outmoded and have somewhat created significant disparity between the fair value and selling price of real properties," he said in a statement.
The Taguig city council passed the ordinance hiking property values last Monday. Two opposition councilors opposed the move, warning of capital flight to cities imposing lower taxes.
To be affected are Megaworld’s Mckinley Hills development (now valued at P16,000 per square meter from P2,500), and the Mahogany Place residential enclave of the Consunjis’ property arm DMCI Homes (P4,000 per sq.m. from P800).
Also adjusted were property values for a number of subdivisions — Spring Lane Homes (P640 per sq.m. to P3,000), Pacific Residences (P1,600 to P3,000), Morning Sun Subdivision (P800 to P1,000), the Maysapang area (P2,000 to P6,000), El Patu area (P1,600 to P6,000), Greenville Homes, (P1,600 to P6,000), Lakeview Manor (P1,300 to P3,000), and Vista de Lago (P1,600 to P3,000).
For commercial-residential areas in Taguig’s so-called City Center — Bonifacio South, E-Square, Bonifacio North, NCBD, and Crescent Park West — property values were increased to P22,000 per sq.m. from P6,000. Properties at the Bonifacio Triangle, University District, and Station Square East were valued at P16,000 from P6,000.
Property valuations for other areas remain the same.
In a phone interview, Taguig city assessor Frankie Endriga said the new values were based on records of deeds and sales. The city, he added, still has a lower tax base for residential and commercial properties compared with other Metro Manila cities.
Property values are used as basis of real property taxes, which range from 1% to 1.5% in Taguig. An extra 1% is imposed for a special education fund.
Sought for comment, Megaworld Corp. executive director Kingson U Sian said the new property values were acceptable.
"It’s just fair for us given the fact that Taguig is fast becoming a highly commercialized city. Our sales have been increasing in the past couple of years," he said.
Mr. Sian said Megaworld was studying the option of raising prices of its Taguig properties.
Isidro A. Consunji, president of DMCI Holdings Inc., said his company would study the ordinance. — E.T. Marcelo