The Uses of Real Property Tax
As per the Supreme Court of the Philippines, the Local Government Units (LGU) shall have local autonomy. It is to perform functions and exercise certain powers, not to be overly dependent on the National Government. However, it must still follow the limitations set by the Congress or that in the 1987 Constitution.
Hence, authorized by law, the LGUs can establish their own revenue sources and levy taxes, fees, and impose charges, one of which is the real property tax (RPT). For RPT, the LGUs can appraise all real properties. Whether it is taxable or exempt, at their current and fair market value (FMV) prevailing in the locality.
The use of collections from real property tax helps every locality improve, enhance, and make every person’s life easier. By providing funds for the delivery of basic needs. Most notably in the development of infrastructure for local use including,
- Low cost housing
- irrigation networks
- public markets
- elementary and high school buildings
Moreover, the use of real property tax uses also include industrial research and support services and tourism promotion programs. It also funds investment support for micro-credit services and primary health care of the people. Lastly, it provides financial support for the management and maintenance of the ecological balance. The local government units exercise these functions in coordination with national government agencies that provide policy, technical, and material support.