THE Supreme Court on Tuesday stopped the Quezon City government from implementing a local ordinance, which imposes heavy tax on residential, commercial and industrial properties.
In its full court session in Baguio City, the SC granted the plea for temporary restraining order sought by petitioner Alliance of Quezon City Homeowners’ Association Inc. (AQCHI) enjoining the city government from implementing its City Ordinance No. 2556 (Series of 2016).
The ordinance approved the fair market value of lands and basic unit construction costs for buildings and other structures for the revision of real property assessments in the city.
The ordinance effectively increases existing fair market values from 100 percent to 500 percent, to be effective in 2017 for lands and in 2018 for buildings and other structures.
The petitioner argued that rates were “unjust and excessive” and would unduly burden landowners in Quezon City.
While it recognized the need to increase property valuation in the city, the petitioner was pushing for smaller or staggered increases.
The AQCHI named Quezon City Mayor Herbert Bautista, the Quezon City Assessor’s Office and the city’s treasurer’s office as respondents in the petition.
Aside from issuing a TRO, the Court directed the respondents to comment on the petition of AQCHI within 10 days from notice.
The Quezon City government earlier said it expected to yield around P700 million in additional collections in the first year of implementation.
Aside from AQCHI, other affected sectors including business groups have expressed their opposition to the implementation of the ordinance, saying the additional tax would have to be passed on to their customers.
