THE Negros Occidental Provincial Government will impose an additional one percent on real property tax in all municipalities in the province.
The ordinance, which provided the said increase, was approved by the Provincial Board during its regular session Thursday, May 4.
Second District Board Member Salvador Escalante Jr., chairman committee of appropriations, budget, finance, ways and means, said the revision of the provincial tax ordinance is mandated by law every five years.
Escalante said the 2017 Provincial Revenue Code is still based on the assessed value of the land, adding that the impending increase is smaller than the usual three to five percent, and way lower than the rate of some cities at 10 percent.
“Generally speaking, we will have an increase of one percent on realty tax within five years. This is the basic principle of the tax ordinance we have passed,” he added.
The 2017 Provincial Revenue Code also provides a special realty tax of 1.5 percent for renewable energy generation companies operating in the province.
The figure comprises one percent for basic tax and an additional .5 percent for Special Education Fund. Meaning, the province will collect about P15 million for every billion-peso worth of investment.
Negros Occidental currently hosts five solar power firms on top of other plants that generate energy using renewable resources.
Escalante, however, said the new revenue code will cover only those in municipalities since cities are already implementing the Republic Act 9513, or the Renewable Energy Act of 2008, to avoid double collections.
Thus, only the solar farm in Manapla town will be covered by the revised tax ordinance, Escalante said.
“This representation will also make a formal query among sugar centrals because I believe sugar centrals are also producing coal,” he added.
