NO TAX INCREASE: SP Iloilo to approve RPT revision suspension next week

By Mariela Angella Oladive

The Sangguniang Panlalawigan (SP) of Iloilo is expected to grant final approval next week to a proposed ordinance suspending the scheduled increase in Real Property Tax (RPT) rates across the province.

The measure, which passed second reading during the SP’s 16th regular session on Oct. 14, seeks to defer the implementation of Provincial Ordinance No. 2024-039, which was set to take effect in January 2026.

Board Member June S. Mondejar, chair of the Committee on Ways and Means, said the move aims to ease the potential burden on taxpayers and local businesses amid ongoing economic challenges.

“We approved on second reading the ordinance suspending the implementation of Provincial Ordinance 2024-039, which was supposed to be the basis of the RPT increase starting January 2026,” Mondejar said in an interview on Friday, Oct. 17.

He said the decision followed consultations with the Provincial Assessor’s Office, Provincial Treasurer’s Office, municipal assessors, and representatives from the League of Municipalities of the Philippines–Iloilo and the League of Municipal Assessors.

“We decided to suspend it to avoid overwhelming taxpayers, especially since we know many are still struggling financially and business conditions are not ideal,” he added.

Mondejar cited the Local Government Code and Republic Act No. 12001, or the Real Property Valuation and Assessment Reform Act (RPVARA), which mandate a general revision of property assessments every three years.

“This means that if the RPT increases in 2026, another general adjustment would again be required in 2028, which might draw negative reactions from taxpayers,” he explained.

He also pointed to the Department of Finance’s planned implementation of the Certified Schedule of Market Values (CSMV) by July 2026 as a key reason to delay the rate hike.

Once approved by the Secretary of Finance, the CSMV would automatically amend the province’s existing ordinance by updating the market value benchmarks used in RPT assessments.

“Even if the province implements the ordinance in January 2026, it will likely only be effective until July,” Mondejar said.

Municipal assessors also raised concerns about their ability to meet the March 2026 deadline for submitting updated market value schedules to the Department of Finance.

Mondejar warned that delays in submissions could undermine the accuracy and integrity of assessment data.

Despite the postponement, the Provincial Treasurer’s Office said the suspension would not significantly impact the province’s revenue collection.

Officials expect that new taxable properties and scheduled reassessments will compensate for the delay in the rate hike.

Mondejar emphasized that the SP is committed to balancing the province’s fiscal requirements with the financial capacity of its taxpayers.

The proposed ordinance is set for third and final reading during the SP’s regular session on Oct. 21, 2025.

If passed, the measure will officially defer the RPT rate increase, offering temporary relief to taxpayers as the national government prepares to roll out its property valuation reforms.