The city government will implement a slight adjustment in real property taxes in the city next year following the enactment of Ordinance No. 16, 2020, approving the revision in the schedule of market values for real properties.
City Assessor Maria Almaya C. Adawe said that it took over 2 decades of public consultations, revisions of proposed schedule of market values, and other related activities before the latest version was approved by the city council last February 3, 2020.
However, the revised schedule of market values will be applicable for lands in the city while the schedule of market values for buildings as provided for in Ordinance No. 101, series of 1995, and the assessment levels for buildings and machineries as provided for in Tax Ordinance No. 2000-001 were adopted.
Adawe disclosed that the implementation of the increase in real property taxes shall be staggered over a period of 2 years with 70 percent being applied starting next year and the remaining 30 percent will be applied in 2022.
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Under the approved ordinance, in the case a specific property cannot be valued, classified or assessed using the approved schedule of market values, the City Assessor will be authorized to value, classify and assess the real property independently applying laws, rules and regulations pertinent to the appraisal and assessment of the said property.
Further, lands shall be valued according to the approved schedule of market values and assessed on the basis of its actual use while the actual use of the land shall follow the actual use of the improvements.
Adawe stated that a parcel of land used for more than one purpose shall be assessed on the basis of its predominant use while recreational lots shall be assessed as commercial.
According to the ordinance, industrial lots shall assume the value of commercial lots in the same area or its immediate vicinity and shall adopt the assessment levels for commercial lots.
On the other hand, agricultural lots shall assume the value of commercial lots in the same area or its immediate vicinity and shall also adopt the assessment level of commercial lots.
The ordinance stipulated that memorial parks shall be valued based on the unit value assigned to the area where the parks are located and it shall be assessed as commercial and taxable under the name of the owner or developer.
However, burial lots sold and fully paid by buyers and those already used as burial grounds shall be considered exempt.
Moreover, golf courses shall be valued based on the schedule plus the development cost and shall be assessed as commercial while roads and the streets shall be appraised on the estimated cost of paving, cementing and asphalting.
For purposes of real property taxation, the same shall be assessed based on the approved schedule.
Raw land shall be valued at 50 percent of the corresponding unit in the area while a vacant lot located in a purely residential area shall be classified, valued and assessed as residential. If the lot is located in a purely commercial area, it shall be classified, valued and assessed as commercial.
By Dexter A. See
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