Baguio council: Suspend hike in real property taxes, affected businesses closing

BAGUIO CITY – The city council pushed for suspension of  implementation of section 4 of ordinance no. 16, series of 2020 that approved market values in the city.
    Under resolution 187, series of 2022, the council stated with restrictions imposed by the local government due to Covid-19 pandemic and due to scarce business opportunities, some small businesses and religious congregations closed their venues considering increase in rent due to new market values which is reportedly killing small businesses.
    Under section 4 of ordinance no. 16, series of 2020, implementation of the increase in the real property taxes shall be staggered over two years such that 70 percent will be applied during the first year and the remaining 30 percent will be applied during the second year.
    This means additional burden on  real property owners and also lessees to whom the real property owners would transfer or pass on the burden by increasing the rentals.
    The body claimed power of taxation is sometimes also called power to destroy, therefore, it should be exercised with caution to minimize injury to the proprietary rights of a taxpayer.
    The council added power of taxation must be exercised fairly, equally and uniformly, less the tax collector will kill the hen that lays the golden egg.
     Section 219 of Republic Act (RA) 7160 known as the Local Government Code of the Philippines, as amended, provided the provincial, city or municipal assessor shall undertake a general revision of property assessments within two years after the effectivity of the said Code and every three years thereafter.
     Earlier, the local legislative body passed ordinance no. 16, series of 2020 which increased the schedule of market values of real properties in the city pursuant to the pertinent provisions of laws, rules and regulations.
    The 70 percent increase in real property taxes was already implemented by the local government and the remaining 30 percent of the projected increase was similarly implemented by the city this year.
    Real property owners appealed to the local government to consider negative impact of the pandemic to economic activities of the people by not increasing the tax rates to allow them to cope up with the difficult situation they are encountering. – Dexter A. See