THE Provincial Government of Negros Occidental could generate about P108 million in additional revenues once the proposed assessment in the fair market value of properties among its 19 municipalities will be approved.
The Provincial Board, during its regular session Wednesday, October 25, approved for second reading the proposed ordinance providing the general revision of the 2017 schedule of fair market value and real property.
Second District Board Member Salvador Escalante Jr., chairman of committee on budget, finance and appropriation, said the proposed average increase on the real property tax (RPT) is pegged at seven percent.
Escalante said the province’s collection efficiency rate is only 65 percent thus, the potential additional revenue is about P70 million. The remaining 35 percent, or P38 million, will be collectibles.
“It is probably worth mentioning that we are the only province in the country religiously revisiting the fair market value every three years as mandated by law,” the board member said, reiterating that in 2014, there was only a slight increase due to the calamities that hit Negros Occidental.
Based on the new proposed assessment of the fair market value, properties along the highway will have higher tax increase probably as high as 20 percent.
Escalante said that subdivisions and other major developments are sprouting left and right thus, these also need a higher assessed value especially when the government is the one purchasing the property.
He pointed out that to protect the sugar industry, there is no increase in assessment of industrial sites particularly sugar centrals. It means that all their machineries and fixtures are not subjected to tax increase.
One question raised during the public hearing Wednesday, prior to the session, was the assessed value for gamefowl farms.
Under the proposed revision, farms with an area of more than one hectare are considered as Class A breeding farms. This classification has higher tax increase than those of smaller farms.
Escalante said they have yet to submit a committee report before approval of the ordinance for third and final reading, most probably next week.
“As of now, we see no impediment in the approval of the proposed increase. However, we are giving more time for possible questions and clarifications from among our stakeholders,” he added.
