Revised RPT passage moved anew

The passage of the proposed ordinance on the revised Real Property Tax (RPT) for Cebu City faces another delay as its second reading was laid on the table by the City Council due to concerns raised on the basis of the new valuation.

Last Wednesday, April 3,2024, the Cebu City Council was supposed to approve the revised RPT on second reading over a motion presented by its author, Councilor Noel Wenceslao, chairman of the Committee on Budget and Finance of the city council.

But during the discussion, Councilor Mary Ann de los Santos sought clarification on the basis of the new valuation.

“May I ask the proponent what is the basis of the new valuation?” de los Santos asked.

Wenceslao then answered that as a whole, the revision of the RPT is based on the current Fair Market Value as mandated by the law.

“This a very valid observation of member delos Santos because I also asked our city assessor of the new valuation, and according to her this was recommended, the valuation was recommended by the independent appraisers and reviewed by the Philippine Valuation Standards,” said Wenceslao.

Wenceslao, however, said that when they asked for proof, certification, or recommendation from the independent appraisers and the Philippine Valuation standard, they weren’t provided copies as of the session.

In a separate text message to The Freeman yesterday, Wenceslao said they will have to revisit the valuation first before they proceed with its approval.

He added that they need to be sure that the valuation is the exact amount of the FMV.

“So this is a very valid observation by member de los santos, I would like to amend my motion, move to temporarily lay it on a table,” Wenceslao then said amending his first motion.

Cebu City Mayor Michael Rama has been reiterating his call to implement the revision of the RPT, saying the city has been deprived of what should be the actual revenue.

The revised RPT will correspond to a higher tax rate for land owners, which will also translate to a higher revenue collection of the city government.

The last revision of the city’s RPT was still in 2003, and Rama has stressed repeatedly the need to update the current RPT.

He added that it is mandated in the Local Government Code 7160 that the RPT rates must be updated every three years. -