Quezon City suspends property tax hike

MANILA, Philippines — Despite getting the Supreme Court nod, a real property tax increase has been suspended by the Quezon City council for two years.

Mayor Herbert Bautista signed into law Ordinance No. SP-2778-2018 on Dec. 6, which suspended the collection of higher real property taxes based on an updated schedule of fair market value until 2020.

The measure suspends the implementation of Ordinance No. SP-2556, which raised real property taxes in the city by as much as five-fold. 

Real property taxes in the city would be reverted back to previous computation under Ordinance No. SP-397 Series 95 and Ordinance No. 1521 Series 2005 based on the 1996 schedule of fair market value. 

Members of the city council said the measure was needed to “temper the effects of higher prices of commodities on the residents.”

They cited the Tax Reform for Acceleration and Inclusion Law, which increased prices of basic goods coupled with the weakened peso. 

Councilor Franz Pumaren said there was no political considerations in approving the ordinance suspending the implementation of higher real property taxes.

The real property tax hike was among the priorities of Bautista, who will step down from office in June after a three-year term. 

On Sept. 18, the high court lifted the temporary restraining order it issued in April last year, which stopped the implementation of the new tax measure that was supposed to raise around P700 million in additional revenue collections for the city government.

The ordinance raised the value of properties by five times, but actual real property taxes increased by 39 to 131 percent.

The schedule of fair market value in the city was increased 21 years ago despite the local government code calling for an adjustment every three years, according to city officials.