City gov't, residents want fair property valuation

The Cebu City government has stepped in to iron out the finality of the rates for 93-1 lots, which were first based on the outdated tax rates of the city, thus corresponding to lower property costs.

- Iris Hazel Mascardo

Last Friday, Mayor Raymond Alvin Garcia and the residents of the 93-1 areas convened to go over the counterproposal that they will present before the Cebu provincial governor, as the loan applications are now being processed.

He added that this is in line with his initiative to serve as the intermediary between the governor and the 93-1 residents.

However, Garcia said that upon reviewing the proposal, he discovered that among the bases of the pricing was Cebu City Hall's property valuation, which, he added, has not been updated since 2003.

"So it is 20 years ago; the property worth 1,000 now might already be 10,000, so I said we have to be fair here, we cannot just use (the outdated tax rates)," said Garcia.

According to Garcia, he recommended that the valuation be based on the value according to its last sale. He explained that Cebu City Hall's Assessor's Office determines the value of each property.

However, it is only the city council that can increase the valuation, and in the absence of such action, the valuation remains the same, hence the outdated valuation since 2003.

Garcia, however, said that when someone purchases a property and transfers it to another person's name, the city government will require the submission of a deed of sale, which will be the basis for the transfer taxes.

He added that since the tax rates imposed on the deed of sale are more updated than basing it on the city's standing valuation, it makes sense to base the rates on the taxes imposed on the deed of sale.