Taxing the “haves” in order to provide for the “have nots.”
Quezon City Mayor Herbert Bautista will sign into law on Oct. 25 a controversial ordinance which will impose a .05 percent hike in real property tax for a lot with an assessed value of P100,000 or more.
Under the Social Housing Tax Ordinance which was passed by the city council on third and final reading on Monday, the increase will be implemented for five years.
The money collected will then be used to fund housing projects for informal settlers although the new houses will not be given away for free. In addition, the beneficiaries face charges should they go back to their previous homes, according to the ordinance.
Councilor Edcel Greco Lagman Jr., the author of the ordinance, stressed the importance of solving the squatting problem in the city as he pointed out that 42 percent of residents were informal settlers.
According to him, the money collected from the hike will be returned to taxpayers in the form of tax credits after five years of continuous payments.
The city council estimated the ordinance would affect only 26 percent of residents. The tax increase will be computed based on the size of the property and its market value. For example, for a lot with an assessed value of P100,000, the owner will be charged an additional P500 in real property tax.