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LOCAL
government assessors and treasurers have pushed for the
creation of a National Appraisal Authority that will set
the standards in the valuation of real property
throughout the country instead of the current system
that is usually dictated by political considerations.
Victor
Endriga, president of the Philippine Association of
Local Treasurers and Assessors (Phaltra), said the
market value of real property is set today by local
government units (LGUs) in their respective localities,
and this is a key factor in an inefficient and
inequitable land market and the low real-property tax
collection by LGUs.
He said
the different methods employed in the valuation system
are also “creating confusion in the market place” since
the political consideration given by the mayors and
governors to influential groups in their areas plays a
big part in decisions on whether the price of land in
particular areas will go up.
“The
schedule of market value is often an offshoot of
political considerations, not based on market forces and
realities,” said Endriga.
The
problem in the current system, he said, is clearly
manifested in the case of properties along Edsa, where
the
Caloocan
City portion is priced at P55,000 per square meter,
while the
Quezon City
part is pegged at a measly P5,000, and the Mandaluyong
portion at P25,000.
A
National Appraisal Authority, once created, will erase
this kind of inequity and confusion in land valuation
since it will be mandated to develop general valuation
standards that will make the “valuation system for real
property nationwide uniform, equitable and impartial.”
The
creation of the agency is part of the Valuation Reform
Act proposal now pending in Congress.
The bill
removes from the local council the power to approve the
schedule of market values, although it still allows the
LGUs to determine the assessment levels and fix the tax
rate in conjunction with their respective domestic
policies.
Endriga
said the measure will also result in the plugging of
revenue leakages since real-estate taxes will be
collected based on realistic valuations. |
