Iloilo SP suspends 2026 real property tax hike

By Mariela Angella Oladive

There will be no increase in real property taxes in Iloilo in 2026 after the Sangguniang Panlalawigan (SP) unanimously approved Provincial Ordinance No. 2025-342 on third and final reading during its regular session on October 21.

Authored by Board Member June S. Mondejar, chairperson of the Committee on Ways and Means, the ordinance—titled “An Ordinance Amending Provincial Ordinance No. 2024-039 by Suspending its Effectivity”—postpones the tax hike originally set for January 2026.

Mondejar said the suspension was prompted by concerns over the financial burden on taxpayers and local businesses amid ongoing economic challenges.

He noted that the 2026 increase would coincide with the 2028 general revision of property assessments mandated by Republic Act No. 12001, or the Real Property Valuation and Assessment Reform Act (RPVARA), potentially overwhelming property owners.

Under the new ordinance, the proposed tax hike will remain suspended until the Schedule of Market Values (SMV) certified by the Secretary of Finance takes effect and a corresponding ordinance is enacted per RA 12001’s implementing rules.

During committee hearings, municipal assessors expressed concern over the tight timeline for finalizing the SMV and submitting updates to the Bureau of Local Government Finance (BLGF) and the Department of Finance (DOF).

The BLGF’s timeline indicates that SMV formulation and public consultations will run from April 2025 to March 2026, while certification and posting by the Secretary of Finance will follow from April to July 2026.

This will be followed by the development of the Real Property Tax Collection Information System (RPTCIS) and the enactment of related ordinances by local governments.

The general revision of assessments is scheduled for 2027, with the new rates set to take effect in 2028.

Local assessors warned that implementing both the 2026 tax hike and RPVARA updates simultaneously could compromise data accuracy and assessment integrity.

The ordinance also repeals any previous issuances inconsistent with its provisions and takes effect immediately upon approval and compliance with publication requirements.

Provincial Ordinance No. 2024-039, enacted in December 2024, had originally called for a general revision of property assessments to reflect updated market values.

With the suspension, the provincial government now plans to synchronize its valuation and assessment efforts with the national schedule under RA 12001, which standardizes valuation across the country and requires updates every three years.

Despite the delay, the Provincial Treasurer’s Office assured that revenue collection will remain stable due to new taxable properties and scheduled reassessments.

Mondejar said the SP is committed to balancing the province’s fiscal needs with the economic realities faced by taxpayers.