Of death and taxes

Let’s not deal with death, at least not for a while. We deal with taxes. We fully understand why government has to impose taxes - but the big question is how much? Too little is not enough; to much, you kill the goose.

I was about to write on another topic, when the December 1 issue of this paper blared the headlines: two groups ask Mayor Puentevella to veto the new tax ordinance. The two groups, representing a substantial number of real estate owners/developers are: The Chamber of Real Estate and Builders’ Associations (Neg. Occ.) led by Eduardo Suatengco Jr. and the Subdivision and Housing Developers Association (Neg. Occ. Chapter) headed by Kenneth Tirthdas. (Even before the passage of this ordinance there was already a note of alarm coming from Ed Alunan, SHDA national board member.)

Why, why, why?

In a full page appeal the two groups underscore the fact that the new ordinance, if allowed to take effect, will increase the real estate taxes of about 120,000 homeowners by more than 40 to 400 percent for the first year of implementation.

Wow, 120,000 home-owners. So if you are one of the 120,000 you better get a pencil and paper and compute how much is your coming real estate tax bill especially if you’re unfortunate enough to be in the 400 percent increase bracket. (Even if your bill goes up by 100 percent, think of the damage it will do your pocket).

In any event, the two organizations against the increase are presumed to “know their onions” being intimately involved in real estate matters.

They appeal to Mayor Puentevella to veto the new tax ordinance based on the following considerations:

There are other ways of increasing the income of the City such as: 1. Improve the tax collection efficiency, which is now at a very low and dismal rate of 38 percent, without resorting to increasing the real estate values; and 2. Increase the assessment levels without raising the real estate market values;

The two organizations are warning that: This excessive and exorbitant increase of real estate market values will raise drastically the real estate taxes, and will be a heavy burden to the thousands of property owners, the great number of whom are Pag-Ibig, SSS and Socialized Housing Borrowers, marginal farmers, small landowners and small businessmen.

The ordinance is contrary to law as the Local Government Code mandates that any increase of real estate values should not be UNJUST, OPPRESSIVE, EXCESSIVE AND CONFISCATORY.

Any exorbitant increase in taxes will result in higher rentals, higher prices of basic commodities, food, shelter, clothing and higher cost of services, thus, further burdening the citizens during this perilous economic times.

The prayer of the two organizations and the thousands of home-owner to Mayor Puentevella is the following:

1. Use your veto powers to stop and prevent the oppressive ordinance from becoming a law;

2. Review and study further the proposed tax ordinance to reflect an increase which is just reasonable and affordable in the Schedule of Market Value of Real Properties.

3. Review and study the possibility of increasing the Assessment Levels instead of revising the Schedule of Market Value of Real Property because it is already beyond the deadline imposed by the Department of Finance.

But I was surprised to see the headline of this paper yesterday, Dec. 3

(Wednesday) that even as the protesters were asking the mayor to veto the tax ordinance, he had already signed it.

So what to do now?

I doubt whether the mayor can or will withdraw his assent to the tax ordinance. The probability is that there will be a recourse to judicial action on the ground that the increase in real estate values (as conceived by the ordinance is unjust, excessive and confiscatory). Then we will be in for a long drawn legal conflict. The courts can suspend the raise while the case is being heard.

And that, my friend, is the 64 dollar question, as they say.

Tomorrow if not today, Ruby will come. Certainly by Saturday it is supposed to hit the Visayas especially Negros Oriental. I hope Can-laon will mitigate the ire of Ruby.*

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