The Quezon City government over the weekend denied reports that it plans to impose a 500-percent increase on real property tax (RPT).
City Assessor Rodolfo Ordanes said the local government is not in any way mandating such a colossal increase, noting that RPT is only applied to the fair market value (FMV) of lands and properties.
“We want to clarify that there is no such thing as a 500-percent increase in Quezon City. That is not true,” Ordanes assured local business groups and property owners alarmed by the reports.
The average FMV of residential properties in the city is P5,000 per square meter, which both the Department of Finance (DOF) and the Commission on Audit (COA) had tagged as outdated as it was last revised in 1995.
“While the FMV has indeed increased up to 500 percent, based on the ordinance, we have lowered the current assessment level of 18 percent to 5 percent for residential properties, and from 45 percent to only 15 percent for commercial properties,” he said.
FMV is the selling price of lands and properties on which city assessors base their computation of the RPT.
“If we do not comply with the COA and DOF recommendations, we could be held administratively liable,” he added.
He said that the reduction of assessment levels would cushion the impact of the revised RPT on property owners.
“Quezon City has the lowest FMV and RPT compared to highly urbanized cities in Metro Manila, so we have to make the necessary adjustments because clearly we’ve been left behind by our neighboring cities,” Ordanes said.
“We are just complying with the law. The city government has no intention to make it difficult for city residents when it comes to taxes,” he said.