Quezon City council eyes 2-year suspension of property value increase

MANILA, Philippines – The Quezon City council wants to suspend for two years the implementation of an ordinance that increases by as much as 500% the fair market values (FMVs) of land and structures in the city.

The city council said in a statement on Friday, October 26, that the proposed suspension seeks to mitigate the effects of inflation due to the Tax Reform and Acceleration and Inclusion (Train) Law.

This comes after the Supreme Court paved the way for the implementation of Ordinance No. SP-2556 after it dismissed the petition of the Alliance of Quezon City Homeowners’ Association Incorporated questioning the measure’s constitutionality.

The ordinance was passed in 2016, but the High Court issued a temporary restraining order on its implementation, following the petition of the homeowners association. 

“After two years, the TRO was lifted and we can actually proceed with implementing the updated fair market values, but we would be remiss in our duties if we do that now. We don’t want to burden the people more,” said Majority Floor Leader Councilor Franz Pumaren.

The last adjustment of FMVs in Quezon City was in 1996.

Under the proposed ordinance on the suspension, the updated schedule of FMVs of lands and basic unit construction costs would be suspended for two years, 2018 and 2019.

If the proposed ordinance is passed, the collection of real property taxes for the years 2018-2019 will still be based on the 1996 schedule of FMVs, the city council said.

In the 13-page decision penned by Associate Justice Justice Estela Perlas Bernabe, the SC cited the AQCHI’s “lack of legal capacity to sue” in dismissing its petition.

AQCHI’s Certificate of Registration had apparently been revoked by the Securities and Exchange Commission, and it had also failed to register with the Housing and Land Use Regulatory Board.

The AQCHI had alleged the up to 500% increase in FMVs was arbitrary because the 2016 ordinance did not indicate any explanation on how the city assessors arrived at the amounts. It did not oppose an increase in property valuation, but only insisted that it be reduced and implemented on a staggered basis.

The Quezon City had government justified the increase, saying that the last increase in the FMVs of properties was in 1996, and that increases indicated in the new ordinance were still lower than FMVs in other Metro Manila cities. – Rappler.com