Early birds' get 20% cut in real property taxes
BAGUIO City is hoping to encourage more real property owners to pay their taxes by offering an early bird discount.
“Real property owners who pay their tax for 2021 on or before the last day of work this year can avail of the 20 percent discount,” said city Treasurer Alex Cabarubbias in an interview on Thursday.
He said several real property owners annually avail of the discount provided for under the local government code but they hope that others will also take advantage of the discount.
The official said that some owners line up to pay their tax as early as the last week of November, which has become their practice to avail of the 20 percent discount.
“Yung talagang nagbabayad na regularly at may schedule sila, every year ganun ang flow ng pagbayad nila,” Cabarubbias said.
He said that those who will pay on the first quarter of the year whether in full or on a staggered basis can still avail of the 10 percent cut on their 2021 annual real property tax.
Cabarubbias said real property taxes (RPT) due for the year can either be paid in full or every quarter. However, failure to pay on schedule, the owner will be charged a penalty of 2 percent for every month of delay.
The RPT is about 30 percent of the total collection of the city from locally generated revenues. It forms part of the annual budget of the local government that allows it to pursue its programs, projects, and other services.
Although some pay early to avail of the perks, he said others do not only pay on time, some wait for years thus the imposition of penalties on their tax payments.
The city official said they have stopped doing the raffle for taxpayers so as not to develop an impression that people need to pay because they can win in the raffle draw.
“We have to remember that taxes are obligation and it is our individual share to the operation of the government to allow it to continue its services and not because of the raffle prize,” he said.
Cabarubbias also added that advance payment for the next
three years will not be entertained this year as the adjustment in real property valuation will take effect in 2021.
The city assessor’s office had earlier announced that the local government will implement the new real property tax valuation in the 2021 real property tax due.
Almaya Addawe, chief at the city assessor’s said the city government last adjusted its real property valuation was in 1995, which does not anymore reflect the true value of the property.