ILOILO City – Property owners here will get four more years of breathing room from steep real property tax (RPT) hikes after the Sangguniang Panlungsod (SP) approved an ordinance extending the 40 percent discount on RPT payments until 2028.
The measure, endorsed by Mayor Raisa Treñas, amends Tax Ordinance Nos. 2023-226 and 2024-235 to ensure that only 60 percent of the approved RPT increase will be collected until the end of the discount period. Idle lands, however, remain fully taxable.
Councilor Maria Jose “Nene” DeLa Llana, vice chairperson of the Committee on Ways and Means and sponsor of the ordinance, said the move was designed to balance the city’s need for revenues with taxpayers’ ongoing financial struggles.
“We know that families and businesses are still recovering economically. This extension is our way of recognizing that burden, while making sure the city government continues to deliver essential services,” DeLa Llana said.
The city raised RPT rates in 2023 after nearly two decades without revision, citing pressures from both the Supreme Court’s Mandanas ruling and the Commission on Audit’s (COA) findings.
The Mandanas ruling expanded local government units’ (LGUs) share in national taxes but also devolved greater responsibilities such as health care, infrastructure, and social services.
“Decentralization means Iloilo City must be more self-reliant in raising revenues to sustain services. The real property tax is one of the few reliable local sources we can maximize,” DeLa Llana stressed.
A 2023 COA audit observation report had flagged Iloilo City for failing to update its schedule of fair market values since 2006, causing understated property assessments and lost revenue opportunities.
“The COA reminded us that we cannot keep delaying tax adjustments. But we also cannot shock our taxpayers with steep increases. That’s why this 40 percent reduction is a fair middle ground,” DeLa Llana explained.
During an August 22 committee hearing, City Budget Officer Viminale Capulso warned that any further reduction in RPT collection would cripple basic services such as medicine procurement, garbage collection, and social welfare programs.
“If we reduce the tax by 80 percent as some suggested, we will cripple the city government. We won’t have enough resources to fund the services our people demand,” DeLa Llana added.
City Assessor Cesar Jalbuena Jr. also pointed out that the national government’s Real Property Valuation and Assessment Reform Act (RPVARA), which takes effect in 2028, will transfer the authority to set property values from LGUs to the Department of Finance. He said Iloilo City must stabilize its tax collection before the shift.
DeLa Llana emphasized that the ordinance was the result of extensive consultations with councilors, finance officials, and legal experts.
“We cannot abandon the city’s fiscal health, but neither can we ignore the people’s struggles. Extending the 40 percent discount is the most rational and humane option available,” she said.
The ordinance was passed during the SP’s 12th regular session and will take effect immediately after publication./PN
