SP Aklan Suspends Realty Tax Increase
During their regular session held on June 6, 2007, the members of the Sangguniang Pan-lalawigan (SP) Aklan approved a resolution suspending the collection of the increase of real estate taxes. This increase of 300 to 700 percent of real estate tax is the result of the implementation of Provincial Ordinance No. 05-009.
The implementation of the said ordinance was made effective this year, 2007. On March 16, 2007, Atty. Romeo P. Inocencio filed a letter protest with the office of the Provincial Treasurer of Aklan, Kalibo, Aklan pointing out that "exorbitant increase of real estate tax" in his real property was assessed and which he paid. Inocencio requested for refund of the overpayment.
In his letter protest, Inocencio based it on the following grounds:
1. Provincial Ordinance No. 05 – 009 was approved without complying with the procedure in the conduct of public hearing provided under Article 276 of the Implementing Rules and Regulations of Local Government Code;
2. The increase of 300 to 700 percent in real property taxes effective 2006 as a result of Provincial Ordinance No. 05–009 is in violation of the fundamental principles of taxation enshrined in Section 130 of the Local Government Code, which mandates that "Taxes shall not be unjust, excessive, oppressive or confiscatory;" and
3. There is no provincial ordinance duly enacted fixing and prescribing the assessment levels to be applied to the new fair market value in order to determine the new assessed value of the real property subject to realty tax as required under Section 218 of the Local Government Code.
According to Atty. Inocencio, the Provincial Assessor is virtually bereft of any authority to revise the assessed value of all real properties in Aklan in relation to Provincial Ordinance No. 05–009. "The absence of an ordinance that would empower the treasurer to levy one (1) percent basic real property tax and one (1) percent special education fund…on the assessed value of the realty is fatal," stressed Inocencio.
MAY 14, 2007 ELECTION CAMPAIGN
During the campaign for the May 14, 2007 local election, the Kusog/AIM candidates brought to the Aklan electorate the issue of confiscatory, excessive and unreasonable increase of real estate taxes United Leadership of Aklan is imposing upon the taxpayers. On the basis of post election analysis, one of the reasons that the Kusog/AIM SP candidates won is the issue on real estate tax. Out of the five candidates each party fielded for SP in the eastern district, three went to Kusog/AIM while only two went to Tibyog. Moreover, the first, second and fourth places went to Kusog/AIM candidates.
For the western district, of the two Kusog/AIM candidates, one won. Moreover, the Tibyog Aklan candidate for vice governor miserably lost to Kusog/AIM. The vice governor by operations of law is the presiding officer of the SP.
Tax is an assessment of property or income upon which a certain sum of money is levied for the use in the management and operation of government. One of the taxes citizens pay is the real estate tax.
A certain real estate is appraised for its market value for purpose of selling. For purpose of taxation, the assessors appraised it for its assessed value upon which the amount of real estate tax to collect is based. Of the real estate tax collected, 50 percent go to the general fund of the government while 50 percent is called special education fund (SEF). This SEF is exclusively disbursed for education, such as salary of teachers, by the authority of the school board of the local government unit. The other amount maybe spent for health program, building and road constructions.
As much as possible, taxpayers opt to pay lesser and lesser taxes, but demand higher and higher quality services. They want free hospitalization and medicine, high standard school, better roads and bridges. The amount of taxes citizens pay deserves only the equal quality of public services. Government cannot give what it does not have.
But how much is confiscatory, unjust, and excessive realty tax? How much is just and reasonable? For a highly productive land, because the owner is a progressive farmer, will not mind paying higher realty tax. On the other hand, a land which remains barren, only grasses grow because the landowner does not cultivate it and grow crops, the P5.00 realty tax per hectare is highly expensive. It will be to the advantage of both the government and taxpayers if a just and equitable tax be paid the government which will return it in terms of high quality services like, health, education, peace and order, transportation.
Land owners must transform their real estate properties into productive farms, housing, commercial and business establishments to increase their capacity. Owning land without developing it into productive business is hoarding and detrimental to society. Develop real estate property and pay appropriate tax. /MP
The implementation of the said ordinance was made effective this year, 2007. On March 16, 2007, Atty. Romeo P. Inocencio filed a letter protest with the office of the Provincial Treasurer of Aklan, Kalibo, Aklan pointing out that "exorbitant increase of real estate tax" in his real property was assessed and which he paid. Inocencio requested for refund of the overpayment.
In his letter protest, Inocencio based it on the following grounds:
1. Provincial Ordinance No. 05 – 009 was approved without complying with the procedure in the conduct of public hearing provided under Article 276 of the Implementing Rules and Regulations of Local Government Code;
2. The increase of 300 to 700 percent in real property taxes effective 2006 as a result of Provincial Ordinance No. 05–009 is in violation of the fundamental principles of taxation enshrined in Section 130 of the Local Government Code, which mandates that "Taxes shall not be unjust, excessive, oppressive or confiscatory;" and
3. There is no provincial ordinance duly enacted fixing and prescribing the assessment levels to be applied to the new fair market value in order to determine the new assessed value of the real property subject to realty tax as required under Section 218 of the Local Government Code.
According to Atty. Inocencio, the Provincial Assessor is virtually bereft of any authority to revise the assessed value of all real properties in Aklan in relation to Provincial Ordinance No. 05–009. "The absence of an ordinance that would empower the treasurer to levy one (1) percent basic real property tax and one (1) percent special education fund…on the assessed value of the realty is fatal," stressed Inocencio.
MAY 14, 2007 ELECTION CAMPAIGN
During the campaign for the May 14, 2007 local election, the Kusog/AIM candidates brought to the Aklan electorate the issue of confiscatory, excessive and unreasonable increase of real estate taxes United Leadership of Aklan is imposing upon the taxpayers. On the basis of post election analysis, one of the reasons that the Kusog/AIM SP candidates won is the issue on real estate tax. Out of the five candidates each party fielded for SP in the eastern district, three went to Kusog/AIM while only two went to Tibyog. Moreover, the first, second and fourth places went to Kusog/AIM candidates.
For the western district, of the two Kusog/AIM candidates, one won. Moreover, the Tibyog Aklan candidate for vice governor miserably lost to Kusog/AIM. The vice governor by operations of law is the presiding officer of the SP.
Tax is an assessment of property or income upon which a certain sum of money is levied for the use in the management and operation of government. One of the taxes citizens pay is the real estate tax.
A certain real estate is appraised for its market value for purpose of selling. For purpose of taxation, the assessors appraised it for its assessed value upon which the amount of real estate tax to collect is based. Of the real estate tax collected, 50 percent go to the general fund of the government while 50 percent is called special education fund (SEF). This SEF is exclusively disbursed for education, such as salary of teachers, by the authority of the school board of the local government unit. The other amount maybe spent for health program, building and road constructions.
As much as possible, taxpayers opt to pay lesser and lesser taxes, but demand higher and higher quality services. They want free hospitalization and medicine, high standard school, better roads and bridges. The amount of taxes citizens pay deserves only the equal quality of public services. Government cannot give what it does not have.
But how much is confiscatory, unjust, and excessive realty tax? How much is just and reasonable? For a highly productive land, because the owner is a progressive farmer, will not mind paying higher realty tax. On the other hand, a land which remains barren, only grasses grow because the landowner does not cultivate it and grow crops, the P5.00 realty tax per hectare is highly expensive. It will be to the advantage of both the government and taxpayers if a just and equitable tax be paid the government which will return it in terms of high quality services like, health, education, peace and order, transportation.
Land owners must transform their real estate properties into productive farms, housing, commercial and business establishments to increase their capacity. Owning land without developing it into productive business is hoarding and detrimental to society. Develop real estate property and pay appropriate tax. /MP
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