|Mayor Bautista Signs Ordinance Updating Fair Market Values|
Mayor Herbert M. Bautista signed Ordinance SP-2556, S-2016 which addresses the 21-year gap since Fair Market Values for properties in Quezon City were last adjusted.
The Department of Finance (DoF) and the Commission on Audit (CoA) recommended that the city government revise its outdated real property valuation system, citing Republic Act No. 7160, or the Local Government Code of 1991, which requires adjustments to property values every three years.
“The city assessor shall undertake the general revision of real property assessments... and shall apply the new assessment level of 5% for residential and 14% for commercial and industrial classification, respectively.”
Increases in RPT due are estimated to range from 39%-161%, the socialized housing tax (SHT), which imposes an additional 0.5% tax on assessed value of all Quezon City lands that exceed P100,000, will not be increased. Low-lying and sunken areas prone to flooding will be granted a reduction of at most 20% of the tax base value per square meter.
Properties occupied by informal settlers will be valued based on the new schedule of FMV but will be taxed based on the 1995 schedule. Informal settlers will also be exempted from paying idle land tax, which is imposed on lands that remain uncultivated or unimproved by the property’s owner.
Full text of the Ordinance: