City assessor explains increase in real property tax charge

Real property tax assessment increased in Baguio following the implementation of the revised schedule for market values on land beginning 2020.

City Assessor Ma. Almaya Addawe explained the increase in real property tax assessment depends on the improvements and location of the land.

Almaya said while a lot clamored for the delay in the implementation of the new rate on real property tax, the city government has to comply with the provisions of the local government code and abide by rules and regulations by the Bureau of Local Government Finance (BLGF) for the regular updating of schedule of market values every three years.

In consideration to the economic impact of the Coronavirus disease 2019 (COVID-19) pandemic, Almaya said the city government is only collected 70 percent of the assess values on real property last year while the 30 percent balance will be collected this year which will pave the way for the full implementation of the said measure.

“Marami ang nagco-complain na bakit ako lang ang mataas ang assessment, bakit hindi yung kapitbahay ko? Please understand that assessment depends on the location of the property, improvements and developments within the area,” Almaya explained.

While there are no penalties for failure to pay real property tax, Almaya said back taxes will apply in the future.

The updated schedule of market values for real property was based on consolidated prevailing price research from brokers, mortgage information and appraisers. Land values also differ if an area is located within an alley, street, main road or subdivision as well as zoning of the land if for commercial, industrial, residential and other purposes.

“Assessment level for residential which used to be at 12 percent actually decreased to only 2 percent,” Almaya said.

In the case of Session Road, the schedule of market value for land used to be Php5,750 per sqm based on the 1990 ordinance but now increased at Php100,000 per sqm which is still lower than the selling price being declared in the market.

According to Almaya, the school site near Tuba, Benguet boundary has the least increase in assessment from Php70 per sqm to Php500 per sqm.

Aside from the increase on land tax, assessment rate for buildings and machineries remained the same using the 1996 schedule of market values according to Almaya.

“We saw that our schedule of market values for buildings and machineries are still relevant, that is why there was no increase in the rate.” Almaya said. – Jessa P. Samidan