Thursday, March 12, 2009 [ sunstar.com.ph ]
CEBU CITY -- In two weeks, the Provincial Government will start collecting higher real property taxes.
At least one official, however, believes the increase should be put off until the crisis eases.
The Provincial Capitol is poised to officially implement a new schedule of fair market values for real properties on March 29. Realty taxes will be 40 to 50 percent higher than the rates in 2002.
"With the new and approved valuation of properties, we expect to have an increase in our revenues of not less than 40 percent," Provincial Board Member Wenceslao Gakit Jr., head of the ways and means committee, told Sun.Star Cebu.
Gakit assured they are open to taxpayers' suggestions on the new tax rates, especially that people are coping with an international economic crisis.
Vice Governor Gregorio Sanchez, for one, wants the new schedule deferred until the local economy improves.
"In times of crisis, we have the head to understand, the heart to feel (the sentiments of taxpayers) and hands to work. Maybe we could evaluate (taxpayers' suggestions) before coming up with a win-win solution," said Gakit.
The Provincial Assessor's Office has revised the assessed values of real properties following the Provincial Board's approval of the new fair market values.
Based on the 2002 market values, Provincial Assessor Anthony Sususco said the total assessed values of all real properties in Cebu reached P14 billion.
Of the amount, the Provincial Government expects to collect some P280 million in real property taxes yearly.
Sususco based the new schedule of fair market values on the location of properties and topography, among others.
In 2007, the committee on ways and means and committee on laws and ordinances, in a joint report, recommended the approval of Sususco's proposal.
Governor Gwendolyn Garcia was quoted as saying the revised schedule on fair market values was long overdue.
The Provincial Government should have made a new assessment in 2005 since the last time it had a new schedule was in 2002.
Gakit expects resistance from taxpayers who are bracing themselves for the global economic downturn.
"We have to explain to them that the revenues we will get from the new (tax) increase will help improve the services in different local government units in the Province of Cebu in terms of infrastructure, road rehabilitation, waterworks and other benefits," said Gakit.
Taxes to be collected from the new schedule will be returned to the taxpayers through their local government units, he said.
While they are open to taxpayers' suggestions, Gakit said the approved law should be implemented before the public's reactions can be considered.
A team will be created to disseminate the new schedule to various towns and component cities in the province before the collection starts.
Vice Governor Sanchez suggested the new tax hike be postponed and reevaluated. "We are here to serve. There are so many ways to increase revenues."
These include, among others, coming up with effective income-generating projects and enhancing agricultural production, Sanchez said.
In Liloan town, Mayor Vincent Frasco said they are already implementing the new schedule for 2009. The Municipal Government reassessed the real property values last year.
"We expect to double our collections, maybe even triple, in terms of real property taxes this year alone," Frasco said in a statement e-mailed to Sun.Star Cebu.
Frasco said the municipality's real properties have not been reassessed for more than seven years.
The Local Government Code provides that provincial and municipal governments are allowed to reassess the market values of real properties every three years.
"The advantage of collecting the right amount due to Liloan is that the municipality can turn this around in terms of programs or infrastructure projects that will directly benefit the people of the town," said Frasco.
Taxpayers can consider it a "worthwhile investment" that will provide both immediate and long-term returns. Taxes "will go to provide a quality education system, improved health program, more infrastructure projects." (GMD of Sun.Star Cebu)
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