THE city committee on ways and means chaired by Councilor George Goking, who is also the chair of trade and commerce, has conducted a series of public consultations on the revaluation of real property valuation in the city.
It may be recalled that the last valuation of real property in the city was in 2006 yet. That valuation was implemented and used for taxation purposes in the year 2008.
Today, 2024, or 18 years after, the real property valuation is being reviewed and will be used, once approved, for real property taxation starting in the year 2026. That would be a whooping 20-year span.
At first glance, the proposed valuation may be meteoric compared to the old set of values. However this valuation would not have been this "high" had it been revised three years after 2006, and every three years thereafter or for six times, as provided for in the Local Government Code.
Real property owners can however heave a sigh of relief because the new valuation will be implemented in three tranches. For the first year of implementation, 35% of the new valuation will be used, followed by another 35% in the next year, then 30% in the third year.
It is also worth noting that the real property valuation per se will not be used for taxation purposes but the fixed assessment levels corresponding to each type of real property. For example, the assessment level for residential lots is only seven percent of the fair market value. On the other hand, the assessment levels of buildings are graduated depending on the fair market value, i.e., from zero percent to 60%.
Tax rates are also important to know. In the illustration provided by the City Assessment Office, the tax rate for residential property is only two percent of the assessed value.
While there will be staggered increases in taxes due, it may be best to consider that after enjoying the low rates for twenty years, it is consoling to note that through our taxes, we will have contributed to the progress of the city.
