THE Davao City Council passed on third and final reading last Tuesday an ordinance approving the Schedule of Market Values (SMV) of all lands and base unit construction cost (BUCC) as basis in the 2018 general revision of Real Property Assessment in Davao City.
The 2018 revision is eyed to take effect in 2019.
Section 3 provided the schedule of base unit of market values for residential, commercial and industrial lands per street and location.
A long list of schedule of market values of urban lands by class: residential, commercial, industrial is provided in the section four of the ordinance.
The criteria for sub-classification of urban lands classified into commercial lands, which reached up to nine classifications; residential lots with also nine classifications; industrial lands which had five classifications is provided in the section five of the ordinance.
Section six provided for the Schedule of Market Values for Agricultural Lands by Class; section seven provided for the schedule of base unit construction cost; section eight described the type of construction; while, section nine provided for the schedule of unit cost for additional items, such as car port, mezzanine, balcony, garage, dirty kitchen, e.g..
The revised assessment levels to be applied to the market value of the real property to determine its assessed value which will be the basis of the collection of RPT is stated in Section 11.
The finalized assessment level on residential lots is four percent, Agricultural 9.50 percent, commercial- 11.75 percent, industrial 15 percent, mineral 15 percent, timberland five percent.
This is lower compared to the 2017 city assessor's proposal of five percent for residential, 10.75 percent for agricultural, 12 percent for commercial, 15 percent for industrial, 15 percent for mineral, and five percent for timber land.
CAO's proposal was actually lower than the 2009 approved assessment level of 10 percent for the residential, 20 percent for agricultural, 25 percent for the commercial, 25 percent for the industrial, 25 percent for the mineral and 10 percent for the timber land.
Section 13 read that real property shall be valued for taxation purposes on the basis of this Schedule of Market Values and Base Unit Construction Cost prepared for the City. As far as properly applicable, such schedule shall be controlling, except where the property to be assessed is not of the same kind as classified in this schedule, or where the value is not fixed. The same shall be valued at its market value independent of said schedule.
Section 14 read that to cushion the impact of the upward adjustment or increase of the market value of lands, buildings, machineries, and other improvements, and in consideration of the rising cost of inflation, the maximum increases in the tax based on the CY 2018 real property tax due and collectible from real property owners under this General Revision shall take effect and implemented on staggered/graduated basis and spread for three years.
"1/3 of the total increase shall be due and collectible for CY 2019; 2/3 of the total increase shall be due and collectible for CY 2020; 3/3 of the total increase shall be due and collectible for CY 2021," it read.