Real property tax increase in Aklan opposed

BY BOY RYAN B. ZABAL

The opposition’s campaign in the implementation of a tax ordinance by the Aklan provincial government starting January next year is gaining ground.

So far, close to 10,000 signatures supported the call of local officials of New Washington and Kalibo to recall the imposition of new taxes.

Oppositions say the tax ordinance adopted last June 18, 2014 by the Sangguniang Panlalawigan of Aklan is “unfair, excessive, unjustifiable and oppressive.” 

Kalibo councilor Augusto Tolentino said he strongly opposed to effect excessive tax increase next year that would have an adverse impact on the lives of Aklanons, still reeling from the devastation of Typhoon Yolanda. 

He also called on the public to be vigilant on the tax hike that would also put the residents, landowners and business owners at a disadvantage.

Tolentino said the tax ordinance imposing a lower assessment levels but a higher base market values would also lead to abrupt increase tax-delinquent properties, and even discouraged potential investors and businesses. 

Under the law, local government units should conduct a general revision of assessments and property classification every three years to reflect the true market values of properties.  

Since 2006, the provincial government of Aklan is using the old schedule of market values in the collection of taxes.

‘LACK OF INFO DISSEMINATION ON EFFECTS OF TAX INCREASE’

By far, the public support for the tax increase hit a snag due to lack of information dissemination of the effects of Tax Ordinance No. 001, series of 2014 entitled “An Ordinance Fixing the Schedule of New Base Market Values of Real Properties for the 17 Municipalities of Aklan for the 2015 General Revision allowed by law to include Special Base Valuation in Boracay Island and Caticlan both in Malay, Aklan, Barangay Union in Nabas, Aklan and Metro Kalibo comprising the barangays of Poblacion, Estancia, Andagao and New Buswang.”

The Aklan Provincial Assessor’s Office headed by Kokoy Soguilon prepared the new schedule of base market valuation and the corresponding levels of assessment and rates of taxes before the series of public hearings were conducted in Boracay Island and the capital town of Kalibo last February until April. 

Last June, majority of the members of Sangguniang Panlalawigan signed the tax ordinance. Among them - Ramon Gelito, Jose Enrique Miraflores, Nelson Sta. Maria, Lilian Tirol, Plaridel Morania,  Emmanuel Soviet Russia dela Cruz, Apolinar Cleope and Roberto Garcia, Jr.

SP members Harry Sucgang and Rodson Mayor did not signed the ordinance while SP members Stephen Bolivar and Esel Flores were on official business when the ordinance was adopted.

The ordinance adjusted the tax assessment level from 20 percent to 14 percent for residential lands; from 50 percent to 33 percent for industrial and commercial lands and from 40 percent to 34 percent for agricultural lands.

But even with a lower assessment level, the tax ordinance drastically increased the base market values per square meters for Kalibo, Ibajay, Banga, New Washington, Numancia, Altavas, Balete, Batan, Lezo, Makato, Tangalan, Nabas, Libacao, Madalag, Malinao, Malay, Buruanga, Boracay Island, Caticlan, Union and Metro Kalibo comprising the barangays of Poblacion, Andagao, Estancia and New Buswang.

‘TAX THE PEOPLE’

For instance, a registered land owner of a 1,000 square meters lot classified as 1st Class in Metro Kalibo will pay P1,760 tax due this year based on P440 base market value and 20 percent tax assessment level.

 

But effective year January 1, 2015, the lot owner will have to pay P4,200 tax due or a difference of P2,440, up by 139 percent. The tax due is based on 14 percent assessment level and the P1,500 based market value. 

Base market values for commercial lands in Metro Kalibo also increased to P6,550 for 1st class; P5,240 for 2nd class; P3,930 for 3rd class and P2,620 for 4th class.

 

The percentage increase in tax due for residential lands in Boracay classified as 1st class lots at 139 percent, 110 percent for 2nd class and 97 percent for 3rd class.

Commercial lands of Boracay will have 98 percent increase in tax due classified as 1st class; 80 percent for 2nd class and 63 percent for 3rd class.