LGUs get busy with updating realty taxes

MANILA, Philippines—Local government units across the country are busy with researches, studies and initiatives for updating their schedule of market values (SMV) of real property, revision of property assessments and imposition of ad valorem taxes on idle lands.

The move is in compliance with the joint memorandum circulars, both dated Oct. 20, 2010, of the Department of the Interior and Local Government (DILG) and the Department of Finance (DoF).

Circular No. 2010-01 enjoins all provinces, cities and municipalities nationwide to prepare or update their SMVs of real property and conduct a general revision of property assessments in their respective areas.

Circular No. 2010-02 invokes Section 236 of Republic Act No. 7160 (the Local Government Code of 1991), which provides for, in addition to the basic property tax, an ad valorem tax on idle lands at a rate not exceeding 5 percent of the assessed value of the property, and enjoins provincial governors, city and municipal mayors, provincial, city and municipal treasurers and assessors to implement the provision in their respective jurisdictions.

All DILG and DoF regional directors have been directed to ensure the compliance of government units.

Implementation of the circulars requires the enactment of an enabling ordinance by the appropriate Sanggunian.

The procedure for the approval and implementation of the ordinance shall be in accordance with Section 187 (which requires the initial conduct of public hearings), Section 188 (which lays down the publication requirements preparatory to the implementation of the ordinance), and Section 189 (which mandates the distribution of copies to the respective local treasurers for public dissemination).