1. What is the New Law About?
Republic Act No. 12001, also known as the Real Property Valuation and Assessment Reform Act (RPVARA), aims to standardize property valuations across the Philippines, ensuring they reflect current market values.
2. Why Should Home Buyers Care?
Property taxes are expected to rise as property values are updated to match market rates. This means your annual property tax bill might increase.
3. How Much Will Taxes Increase?
For the first year, any increase in real property taxes is capped at 6%. Local governments will update property values every three years, potentially adjusting tax rates to manage the impact.
4. Potential Benefits
Increased taxes can lead to better local services if the additional funds are used wisely by local governments.
5. What Should You Do?
Stay informed about your local government's property valuation updates and budget for potential increases in your property tax bill.
RA 12001 will also “instill and encourage long-term and consistent tax compliance by providing a two-year amnesty on interests and penalties for taxpayers with unpaid real property tax” as a strategy toward efficient tax collection.
Understanding these changes can help you plan your finances better and ensure you're prepared for any adjustments in your property-related expenses.
For more detailed information, you can read the full article here.
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