WHY WE NEED PROPERTY VALUATION REFORMS

AS JANUARY rolls in, thoughts of paying annual real property taxes fill our agendas. How much is left over the Christmas bonuses to pay our property taxes? I hope there is enough. Many do not pay, or forget to pay. This has been a problem of many local government units (LUGs) for some time.

Yet these form part of local government taxes without which local autonomy is difficult to achieve. While some LGUs are able to earn enough for themselves and then some, many are unable to do so. This hampers their capability to make solid investments and allows too much politics to take root.

Already passed by the House of Representatives last November is a part of Package 3 of reforms of the Duterte administration’s comprehensive tax reform program (CTRP) that aims to change the way land values are determined and improve collection of real property taxes which are essential to build up the revenues of local governments.

These are hoped will help upgrade the financial self-sufficiency and autonomy of local government units (LGUs).

Package 3 will not create new taxes but would improve real property tax collection for the benefit of LGUs.

The economics advocacy group Foundation for Economic Freedom supports this reform. In a statement it said:

“The main objective of Package 3 is to develop and maintain an equitable and efficient real property valuation system. It will address the present problem of multiple, overlapping valuations through the adoption of a uniform valuation standard and establishment of a single valuation base for taxation purposes.”

According to FEF, this CTRP package, which seeks to install a uniform land valuation standard nationwide, mandates “the Bureau of Local Government Finance (BLGF) to develop and maintain implementation of uniform valuation standards in compliance with international best practices, under the Department of Finance (DOF) oversight while assessment levels and tax setting will remain a function of the Sanggunian of the Local Government Units (LGUs).”

“Separating valuation from political bodies will also ensure that the practice is free from undue politicization,” it added.

Read more of this article here..http://thedailyguardian.net/opinion/why-we-need-property-valuation-reforms/