By lovely a. carillo
Increase in the value of land in Davao will have minimal impact on taxpayers and the business sector under the newly-approved schedule for market values (SMV) which now serves as the basis for the tax assessments on real properties.
This was the assurance of Councilor Danilo Dayanghirang, who said, “The end impact is very minimal since we reduced the elements of computation such as the assessment level.”
Dayanghirang said the increasing land value is expected to have an impact on businesses since all properties attached to land are also taxable.
To cushion the impact on taxpayers, he said, the City Council did not only reduce the assessment levels of the RPT. It also allowed taxpayers to adjust to the new valuation in three years.
“We might be able to implement this by 2019 so plus three years before it is fully implemented,” he said.
The SMV was approved by the City Council last week of August but it still has to be submitted to Mayor Sara Duterte for her signature. If not vetoed by the mayor the SMV will be submitted to the DOF for review and approval.
“We are confident the SMV for the city’s real properties will be approved by DOF without amendment,” Dayanghirang said.
The city expects to earn P326 million with the full implementation of the SMV of all lands and base unit construction cost as the basis for real property assessment once it s fully implemented.
The new SMV rates are the following: 4 per cent for residential, 9.5 per cent for agricultural, 11.75 percent for commercial, 15 percent each for industrial and mineral and 5% for timberland. This is much lower than the previous assessment levels.
“We reduced the SMV rates because we want to make sure that we follow the basic principle that it should be affordable and based on capacity to pay of taxpayers,” he said.
The SMV was reduced to cushion the impact of the upward adjustment or increase of the market value of lands, he said.