QC eyes suspension of real estate tax increase
he Quezon City Council wants to suspend for two years the implementation of an ordinance mandating the increase in fair market values (FMV) of real estate properties to lessen the burden on the city’s taxpayers.
Ordinance No. SP-2556, S-2016, which enacts the updated schedule of FMVs and is expected to increase real property taxes of properties in the city was put on hold in 2016 due to a Temporary Restraining Order (TRO) issued by the Supreme Court following a petition filed by the Alliance of Quezon City Homeowner’s Association, Inc. (AQCHI).
The TRO was lifted by the SC on September 18, 2018, but the city council is bent on suspending the ordinance’s implementation, citing the impact of the Tax Reform and Acceleration and Inclusion (TRAIN) Law on the public.
“After two years, the TRO was lifted and we can actually proceed with implementing the updated fair market values, but we would be remiss in our duties if we do that now. We don’t want to burden the people more,” said Majority Floor Leader Councilor Franz Pumaren.
“The adjustment in fair market values is something that we really need to do because we last updated that in 1996, but the council has decided to suspend the implementation for the time being,” Pumaren said.
He added: “We need to do all we can to temper the effect of inflation on commodities for residents and taxpayers of Quezon City.”
According to the proposed ordinance on the suspension, the updated schedule of fair market values of lands and basic unit construction costs is suspended for two years from 2018 to 2019.
Thus, collection of real property taxes for the years 2018-2019 will still be based on the 1996 Schedule of Fair Market Values.