ILOILO City – Responding to mounting appeals from residents and business owners burdened by sudden tax hikes, the city government is seeking to extend the 40% reduction in Real Property Tax (RPT) payments until the end of 2028.
Mayor Raisa Treñas endorsed on July 4 a proposed ordinance to the Sangguniang Panlungsod, which aims to amend Tax Ordinance No. 2023-226 and Tax Ordinance No. 2024-235. The measure would prolong the tax relief granted under the current reassessment cycle and delay the implementation of increased building assessments.
“This is in response to the clamor of our taxpayers and business sector who were affected by the new property valuations,” said Treñas.
The city began implementing in 2024 a new Schedule of Market Values for land, which triggered a spike in assessed property values and, subsequently, tax dues. Many stakeholders — especially small business operators and low-income property owners — described the increase as unaffordable and called on the city government for reprieve.
Aside from the tax discount extension, the proposal also recommends deferring the updated Schedule of Base Unit Construction Cost (BUCC) for buildings from its original rollout date to January 1, 2029.
“While our real property tax rate is neither high nor low compared to other cities, it plays a crucial role in subsidizing key infrastructure and public service projects, such as primary care facilities, plaza beautification, and market rehabilitation,” Treñas explained.
Under the proposal, property owners will continue paying only 60% of the adjusted RPT rate for the next three years. Idle lands, however, will still be excluded from the relief and will remain subject to the full additional Ad Valorem Tax.
The City Council is expected to take up the proposed ordinance in its upcoming sessions. If passed, it would provide temporary financial relief for thousands of property owners until the city fully transitions to the new tax structure in 2029./PN
