MAKATI Mayor Marlen Abigail Binay-Campos approved an ordinance lowering real property tax (RPT) rates in the city.
In a statement on Monday, Makati said Ms. Binay-Campos signed City Ordinance No. 2025-047 on March 24, which has an effectivity date of Jan. 1.
The ordinance amends the Revised Makati Revenue Code or City Ordinance No. 2004-A-025, which deals with basic real property tax and assessment levels.
“Following a comprehensive review of current tax rates and prevailing economic conditions, we have proceeded with our plan to lower tax rates for all classes of land in the city,” the mayor, a candidate for the Senate, said.
“Residents and property owners in the city will now enjoy substantial savings from the biggest tax reduction and lowest assessment levels implemented by the city government to date,” she added.
Even though city revenue could take a hit, Ms. Binay-Campos said she expects the long-term gains to offset the losses.
The mayor also noted that the estimated annual P7.9 billion savings from the removal of subsidies to 10 Embo barangays transferred to the jurisdiction of Taguig could help cushion the impact.
“I believe we can manage very well even with lower RPT collection. As more businesses choose to locate in Makati, our revenue from business tax and relevant fees will increase as well. More importantly, more jobs will be created for our residents,” she said.
For land, rates of levy for residential property is now at 1% from 1.5%, commercial property at 1.5% from 2%, industrial property at 1.5% from 2% and special property at 0.5% from 1.5%.
Meanwhile, real property tax rates for buildings, machinery, and other improvements were left unchanged for residential (1.5%), commercial (2%), industrial (2%), and special (0.5%) categories.
However, residential property that is not exclusively used by the owner or his immediate family and offered for rent will still be classified as residential/commercial, with an additional 0.125% tax on the assessed value of the land and 0.25% on improvements. — Aubrey Rose A. Inosante