QC suspends fair market value ordinance despite SC's favorable order
By AJ Siytangco
Published Oct 27, 2018 11:16 am
By Chito Chavez
Despite the Supreme Court's ruling in favor of the Quezon City government, the city council wants to suspend the implementation of an ordinance mandating the increase in fair market values (FMV) of properties to lessen the burden on the city’s taxpayers.
(MANILA BULLETIN)
The council found its move necessary with the public reeling and still experiencing the effects of inflation caused by the Tax Reform and Acceleration and Inclusion (TRAIN) law.
Ordinance No. SP-2556, S-2016, which enacts the updated schedule of FMVs and is expected to marginally 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) questioning the legality of the ordinance.
The TRO was lifted by the SC on September 18, 2018 and ruled in favor of the city government, but the city council is now out to suspend the implementation, citing the effects of TRAIN law on the current prices of commodities.
“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.
Based on directives from the Department of Interior and Local Government (DILG), the Department of Finance (DOF) and the Commission on Audit (COA), the 2016 ordinance was set to initiate the revision of the outdated FMVs of lands and basic unit construction cost for buildings and other structures.
The revision would increase the real property tax of property owners but, since the assessment level as set by the City Assessor’s Office has been reduced from 18 percent to as much as 5 percent, the actual increase in real property tax would be significantly decreased.
“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 FMVs 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.
On the lifting of the TRO on the ordinance, the decision was explained in a 13-page decision penned by Associate Justice Estela M. Perlas-Bernabe where the SC unanimously dismissed the petition filed by AQCHI on technicality.
In its petition, AQCHI confessed that it lacked the juridical personality to sue since its Certificate of Registration from the Securities and Exchange Commission (SEC) had been revoked. It is also not recognized by the Housing and Land Use Regulatory Board (HLURB).
Though the petition was filed by the AQCHI board of trustees through its treasurer Danilo Liwanag, who is a Quezon City resident and taxpayer, the court found that the petition was filed on behalf of the Alliance and not of a natural person or persons.
The high court explained that the technicality rendered the case dismissible since only natural or juridical persons or entities authorized by law have the legal capacity to file the petition.
The dismissal cleared the respondents indicated in the petition, namely, Quezon City Mayor Herbert Bautista and the officials of the city’s assessor’s office and treasurer’s office.
Read more: SC lifts TRO on QC gov’t ordinance that can increase land, building value to as much as 500 percent
(MANILA BULLETIN)
The council found its move necessary with the public reeling and still experiencing the effects of inflation caused by the Tax Reform and Acceleration and Inclusion (TRAIN) law.
Ordinance No. SP-2556, S-2016, which enacts the updated schedule of FMVs and is expected to marginally 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) questioning the legality of the ordinance.
The TRO was lifted by the SC on September 18, 2018 and ruled in favor of the city government, but the city council is now out to suspend the implementation, citing the effects of TRAIN law on the current prices of commodities.
“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.
Based on directives from the Department of Interior and Local Government (DILG), the Department of Finance (DOF) and the Commission on Audit (COA), the 2016 ordinance was set to initiate the revision of the outdated FMVs of lands and basic unit construction cost for buildings and other structures.
The revision would increase the real property tax of property owners but, since the assessment level as set by the City Assessor’s Office has been reduced from 18 percent to as much as 5 percent, the actual increase in real property tax would be significantly decreased.
“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 FMVs 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.
On the lifting of the TRO on the ordinance, the decision was explained in a 13-page decision penned by Associate Justice Estela M. Perlas-Bernabe where the SC unanimously dismissed the petition filed by AQCHI on technicality.
In its petition, AQCHI confessed that it lacked the juridical personality to sue since its Certificate of Registration from the Securities and Exchange Commission (SEC) had been revoked. It is also not recognized by the Housing and Land Use Regulatory Board (HLURB).
Though the petition was filed by the AQCHI board of trustees through its treasurer Danilo Liwanag, who is a Quezon City resident and taxpayer, the court found that the petition was filed on behalf of the Alliance and not of a natural person or persons.
The high court explained that the technicality rendered the case dismissible since only natural or juridical persons or entities authorized by law have the legal capacity to file the petition.
The dismissal cleared the respondents indicated in the petition, namely, Quezon City Mayor Herbert Bautista and the officials of the city’s assessor’s office and treasurer’s office.
Read more: SC lifts TRO on QC gov’t ordinance that can increase land, building value to as much as 500 percent