SP OKs graduated RPT, less penalties
LINGAYEN—In response finally to vehement objections to its controversial tax measure, the Sangguniang Panlalawigan passed twin measures in its session last May 16 effectively modifying the implementation of the General Revision of Real Property (RPT) Assessment and Classification for 2011.
The first measure, Provincial Ordinance (PO) No. 12-2011, provides for a graduated implementation of the updated RPT over a period three-year period.
The new ordinance requires taxpayers to pay only 50 percent of the RPT increase in 2011, 75 percent in 2012 and 100 percent by 2013 instead of paying the full rate of increase in 2011.
Governor Amado Espino Jr. initially countered with a staggered implementation of the revised RPT assessment over five years but this was amended.
The second measure, PO No. 13-2011, condones interests, penalties and surcharges on unpaid RPT provided that the landowner pays the scheduled tax rate before the end of 2011.
Both measures were approved by the SP on the prodding of the governor to appease real property taxpayers who have raised a big howl to protest the revised RPT assessment which increased rates by 300 to 800 percent.
Both measures amended PO No. 146-2010, approved by the SP on December 10, 2010 and enforced on January 1, 2011.
TAX RELIEF
Board Member Von Mark Mendoza, author of Ordinance No. 12-2011, described the amendment as a better response instead of the proposed staggered implementation of the revised RPT because the new measure “provides a big tax relief to the taxpayers.”
Mendoza claimed that a taxpayer who paid P1,000 RPT under the old rate would have paid P2,000 under the original measure after increasing the RPT rate by 100 percent.
With the amendment, the taxpayer will only pay P1,500 in 2011; P1,750 in 2012; and the full amount or P2000 in 2013. He did not elaborate the difference between the approved measure and the proposal of the Liga ng mga Barangay for a 3-year staggered payment.
“Wasn’t that a big help to the taxpayers?” Mendoza crowed.
Earlier, members of the Liga ng mga Barangay passed a resolution entitled “Requesting the Provincial Government to adopt a staggered scheme of implementation of the payment of Real Property Taxes”.
The resolution of the Liga proposed a staggered scheme of payment of real property taxes based on the updated RPT for three years from 2011 to 2012. Espino recommended a five-year period to the provincial board.
Section 5 of the second new ordinance provides that in case real property tax payments due in 2011 have already been made in full by any taxpayer in accordance with the RPT general revision for 2011, the excess amount paid, after effecting a 50 percent implementation in accordance with the scheme of payment, shall be considered as a tax credit which may be applied to any subsequent tax liabilities of the same taxpayer.
The ordinance was approved unanimously by all the 12 provincial board members present.
Mendoza expressed hope that the graduated implementation of the RPT and the condonation of penalties will be welcomed by farmers and other taxpayers, some of whom ealrlier threatened to go to court against the provincial government.
CONDONATION
PO 13-2011 which provides relief in the form of condonation penalties arising from unpaid or delayed payment of new RPT rates will only cover transactions until the end of year 2011.—LM
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