News Column

Philippines : Exempt poor family homes from real estate taxation

July 14, 2014



Deputy Speaker Giorgidi B. Aggabao said there's need to further protect poor families from losing their homes for the reason of non-payment of real estate taxes.

"Can you imagine poor families, already burdened by financial difficulties to sustain their daily needs, losing their homes simply because they cannot pay their real estate taxes," Aggabao asked.

Aggabao is author of HB 120, entitled "An Act to exempt the family from the payment of real property tax." The measure had been referred for consideration to the House committee on Local Government.

The constitution, Aggabao cited, expressly recognizes the family as an inviolable institution that needs protection.

The family home is defined as "the dwelling house where a person and his family reside, and the land on which it is situated."

Section 3 of HB 120 provides: "...A duly constituted family home is hereby declared exempt from the payment of the real property tax if the owner of the real property is actually residing therein and the current and fair market value thereof does not exceed five hundred thousand pesos."

Furthermore, the bill states that "If the current and fair market value of the family home exceeds the five hundred thousand pesos, only the first five hundred thousand pesos shall be exempt from the payment of the real property tax, and the excess shall be subject to tax."

However, the bill also states that "If the current and fair market value of the family home exceeds one million pesos, the entire real property shall be subject to tax."

By setting the aforementioned qualifying provisions, Aggabao said the Filipino family, especially the poor ones, may be spared from the sorry spectacle of losing their homes simply because they cannot pay their real estate taxes," the author stressed.


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Source: TendersInfo (India)


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