The city government’s revenue collection from real property taxes last year saw a decrease in amount compared to the previous year, but city officials said they still managed to exceed the target set by the Department of Finance.
Joel Solina, head of the city’s real property tax division, said their collection for 2017 amounted to P192.4 million, lower compared to P200.0 million in 2016.
Solina attributed the decrease to the trend that in 2016 many property owners who had tax arrears decided to settle their obligation to the government towards the closing of the fiscal year.
“If you look at the data, we collected P20.9 million in November 2016, while on the same month in 2017 we only had P10.9 million. That is the reason why we had a decrease in our total collection last year,” Solina told Palawan News on Thursday.
However, Solina said the last year’s collection was still way higher than the P166-million target set by the Department of Finance’s Bureau of Local Government Finance (DOF-BLGF).
“That target is set by the DOF based on the collectible amounts submitted by the city assessor,” he said.
Solina said real property taxpayers can rest assured their money will go to impactful government projects, such as the concreting of city roads, among other infrastructures.
“Of the total collection, 2% goes to the city’s general fund, which is used to fund priority projects. Meanwhile, 1% goes to the city’s special education fund intended for the salary of local board-funded teachers and also for funding school building construction and training programs for teachers,” he said.
“Out of the 2%, 70% goes to the priority development projects, while the remaining 30% goes back to barangays (50% to barangays to which the RPT were collected and 50% equally divided to 66 barangays,” he added.
The City Information Office, in a press statement, said that 2016 and 2017, 10 properties were subjected to auction.
“For two years, the city government, under the leadership of Mayor Lucilo Bayron, has been doing the auction. It’s the local government’s way of telling real property owners to be responsible and diligent in paying their respective annual real property taxes,” the statement said.
Solina, meanwhile, reminded real property owners to settle their taxes earlier to get a discount and avoid the deadline rush.
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