After a five-year hiatus, the Quezon City government will resume collection of real-property taxes on landholdings this year based on the 2017 schedule of fair market values (FMVs).
“Beginning with the taxable year 2023, we will use the FMVs for various classes of real property as defined in Ordinance No. SP-2556, S-2016 which was passed in 2016 and was applied until 2017,” city treasurer Edgar Villanueva said.
He clarified that the adjustment was not a new increase, but simply a reversion to the rate used five years ago.
It was temporarily suspended by the Supreme Court following a petition filed by a homeowner’s association, questioning the legality of the ordinance.
In 2018, the Supreme Court lifted its temporary restraining order, allowing for the re-implementation of the updated schedule of FMVs.
Despite the favorable decision, the city government decided to continue its suspension until recently to alleviate “the effects of inflation caused by the Tax Reform Acceleration and Inclusion law.”
With the city government receiving P1 billion less in national tax allotment as a result of the national government’s shortfall in tax collections owing to the COVID-19 pandemic, the reinstatement of the former rate is required to support the city’s five major thrusts.
It included the expansion of social services and the establishment of necessary infrastructure facilities.
“Through the years, the unwavering support of our residents through their tax payments has enabled us to fund impactful programs. We look forward to the same support as we aim to build and rehabilitate vital public facilities such as footbridges, parks, schools, and hospitals, among others; and, of course, to fund the social services that we extend especially to the marginalized,” the city treasurer said.
Taxpayers who will settle their annual dues on or before March 31, 2023 can avail themselves of the 20 percent discount, while those who will pay via installment or on or before the end of each quarter will receive a 10 percent discount.
Villanueva urged delinquent taxpayers to settle their unpaid taxes or its installment during the payment period to prevent court action or placement of their property on the list of delinquent properties to be sold at public auction.