Schedule of Market Values tackled in last consultation with Pque LGU
In compliance to the Dept. of the Interior and Local Government (DILG) and Department of Finance (DOF) Joint Memorandum Circular No. 2010-01 dated October 20, 2010, the Parañaque City Government, through its Sangguniang Panlungsod, in cooperation with the Office of the City Assessor started the consultation process with a public meeting at the Executive Lounge of the Parañaque City Hall on Monday August 1, 2011.
Said directive enjoins all provinces, cities and the Municipality of Pateros, Metro Manila to prepare the schedule of market values (SMVs) of real property and to conduct the general revision of property assessments in their respective jurisdictions. The Local Government Code (LGC) mandates SMV revisions every three (3) years.
To dispel rumors that a huge hike on real property taxes (RPT) looms, City Assessor Soledad Samonte stressed that the revision being called for in the above DILG-DOF MC is for the SMV and not for the RPT.
For better appreciation, the following hypothetical examples were presented. Under the 1997 “Current” Schedule of Market Values, the RPT of an R-2 residential lot without improvement is computed as follows: Lot area 280.0 sqm X unit value 1,000.00 = market value 280,000.00 X assessment level 20% = assessed value 56,000.00 X tax rate 2% = annual RPT 1,120.00.
If the unit value is raised, say to 3,000.00 it will be computed as follows: 280 X 3,000 X 20% X 2% = hypothetical (2012) annual RPT 3,360.00 less (-) 1997 (current) annual RPT 1,120.00 = amount of increase of annual RPT 2,240.00 distributed over (÷) 365days = 6.14 less (-) 20% payment discount (if the 2012 RPT is paid on or before Dec. 15, 2011) = daily RPT increase of only P4.91.
Based on the consultative meetings conducted by the City Assessor, together with the City Council Secretary plus the inputs gathered in the public meeting last August 1, 2011, there will be a new proposed assessment at a much lower rate. This will be incorporated in the draft ordinance scheduled for first reading anytime this month, after which the required public hearing will be conducted.