Aklan OKs higher real property tax rates

Gov. Florencio Miraflores signed a provincial ordinance that raised real property tax rates in Aklan.

Ordinance No. 2017-001 adjusted the schedule of market values of all real properties in the province. It shall take effect starting Jan. 1, 2018.

The Sangguniang Panlalawigan (SP) passed the measure on third and final reading during a special session on Wednesday.

Vice Gov. Reynaldo Quimpo, SP presiding officer, said raising real property taxes was necessary for Aklan to be “competitive.”

“Among the features of the RPT (real property tax) hike was a 10-percent increase among residential and agricultural lots, and at least 50-percent hike among commercial areas, including Boracay,” said Quimpo.

Revenues from increased real property taxes will be used for the town’s special education fund and health services, he added.

Republic Act 7160, or the Local Government Code, requires local government units to adjust real property tax values every three years.

The last time Aklan made general revisions in its real property tax rates was on Feb. 9, 2005. The adjustments took effect in 2006.

“Certain localities have experienced rapid development in commerce, trade and investment, sparked mainly by the booming tourism industry [over] the past 12 years,” read part of the consolidated SP committee of the whole Report No. 2017-182.

“In effect, the (current) real property tax level is no longer reflective of the current true market assessment values in Aklan and therefore should be updated,” the report read.

Real property owners in agricultural and residential areas may avail themselves of a 20-percent discount if they pay in advance, said Quimpo.

Real properties in Aklan are around 97 percent agricultural and residential and only 3 percent commercial and industrial, he noted.

“We tried to implement a new RPT hike in 2014 but this was considered void after some sectors questioned it in court,” said Provincial Assessor Kokoy Soguilon. “We have learned our lesson, and we are more ready to face court charges.”

Assuming it could achieve a 100-percent collection rate, the province expects P41 million worth of additional revenue with the new real property tax rates, according to Provincial Treasurer Suzette Pioquid.

In August, the SP consulted with municipal assessors, treasurers and elected officials in reviewing the current land valuation assessment levels and rates, and the impact of the resulting increase, or incremental tax due.

“The 2005 assessment level resulted to negative real property tax for certain real property kinds and classification, therefore an adjustment is necessary in consonance with the principle of progressive taxation,” the SP had said.

Public hearings on the then proposed new real property tax rates were held in Barangay Old Buswang in this capital town on Sept. 5 and at the Nabas town covered court on Sept. 7.