‘THIS MIGHT KILL ILOILO’: Businesses dead, surviving amid skyrocketing RPT hike

What happens when a city tax bill jumps more than 6,000% overnight?

For one of Iloilo’s largest commercial property developers, the answer is grim.

“We are already dead.”

That is how Atty. Martin Pison, corporate secretary, legal counsel, and director of the Riverside Group of Companies, described the state of their business after the Iloilo City government implemented a massive real property tax (RPT) increase in 2024.

While some business owners continue to struggle, Pison said many — including their group — are already operating in the red.

And the rest?

Just trying to survive.

“This might kill Iloilo […] I don’t know what will happen. We are trying to survive,” he warned.

Behind the façade of nightlife and dining in their properties is the burden of keeping the lights on — not just for their tenants, but for an entire system built on land now deemed too expensive to own.

Pison revealed that over half of the company’s landholdings are parking areas and public road lots — spaces that do not generate income but are kept open for public convenience and traffic flow.

In March 2024, the company filed a petition for certiorari, prohibition, and mandamus before the Supreme Court.

The goal, Pison said, is to stop what they claim is a sudden, unconsulted, and unjust tax burden that is pushing businesses to the brink.

According to him, Riverside properties were hit with RPT increases ranging from 765% to as high as 6,200%.

For example, one company saw its tax jump by 1,000% — from PHP376,119.76 under the 2005 ordinance to PHP3,330,504.58 under the 2023 tax schedule.

Another company faced a 1,400% increase — from PHP584,283.56 to PHP7,564,856.93.

These amounts already factor in the 40% discount currently extended through 2026, and possibly up to 2028.

“That is what pushed us to question because our business will be dead […] It is still very alarming, we were shocked by this,” he said.

“If you push somebody up a corner and up against a wall, we have no choice. We have to survive,” he added.

Pison said Riverside was never consulted prior to the hike nor formally notified about the discussions leading to the increase.

Letters sent to then-mayor Jerry Treñas warning of the business impact reportedly went unanswered.

Pison said stockholders have received no dividends for the past two years due to sustained losses since the increase took effect, worsened by the lingering effects of the COVID-19 pandemic.

He stressed that they have been forced to gradually and minimally increase rental rates for tenants just to survive and support their employees.

“We increased so we can survive and pay around people,” he said.

However, these increases fall far short of covering the spike in tax obligations.

He also revealed that some investors are considering selling their properties but hesitate due to the fear that potential buyers may also shy away from the city’s significant RPT rates.

“We are very close to doing it,” Pison said, “but who will buy it?”

City legal office: We followed due process

Meanwhile, Iloilo City Legal Officer Atty. Joseph Edward Areño on Thursday, Aug. 22, defended the legality of the RPT increase amid the pending Supreme Court case.

In an interview, Areño said the city strictly followed due process when enacting the new tax ordinance.

“The case that was filed is an injunction to stop the implementation, which was more than a year ago. Until now, wala pa sang action. That is the status I can share for now,” he said.

He declined to discuss the merits of the case but confirmed that the City Legal Office had already filed its official comment and opposition.