Supreme Court stops Parañaque from hiking real estate taxes

MANILA, Philippines - The Supreme Court (SC) has temporarily stopped the implementation of Paranaque City’s new ordinance, which is expected to increase taxes of land, building and improvements in the city by next year.

In a two-page notice released last week, the third division of the high court issued a temporary restraining order (TRO) enjoining the city government from implementing Ordinance 11-11, which several homeowners associations have questioned.

The SC also directed Mayor Florencio Bernabe Jr.; city assessor Soledad Samonte; Councilor Jason Webb, who chairs the city council’s ways and means committee, to submit their comment within 10 days on the petition for certiorari, mandamus and prohibition filed by the petitioners last Sept. 28.

Last Oct. 13, the city council approved Ordinance 11-11, which prescribes the schedule of values for land, building and improvements for the City of Paranaque.

The approval of the ordinance is in compliance with Joint Memorandum Circular 2010-01 of the Department of Finance and the Department of Interior and Local Government, which enjoins all provinces and local governments in Metro Manila to conduct a general revision of property assessments in their respective jurisdictions.

In accordance with the memorandum circular, the city assessor submitted a proposed schedule of values to the city council.

Homeowners’ associations in several subdivisions in the Parañaque, such as BF Paranaque, Better Living Switzerland, United BF Homeowners Association, and 4th Estate have filed a petition before the SC seeking to have the ordinance declared null and void. They said it would result in a 300-percent increase in land tax rates.

Bernabe, however, denied the homeowners’ claim, saying the city government will only implement a 100-percent increase in lot taxes, but there will be no increase in the tax rate for structures.

He said Parañaque is ready to defend the implementation of higher realty taxes, adding that he is “optimistic” the court will see their point. – Edu Punay, Aie Balagtas See