Ways and means comm to tackle proposed extension of 20% RPT discount

The City Council committee on ways and means will deliberate on the request of the Cagayan de Oro Chamber of Commerce and Industry Foundation, Inc., and the Misamis Oriental Filipino-Chinese Chamber of Commerce and Industry, Inc. (MOFCCCII) for the extension of the 20% real property tax (RPT) discount from December 31, 2025, to March 31, 2026.

The joint request is a collective concern of the city’s business community, including local enterprises, exporters, manufacturers, retailers, service providers, and property lessees, over the financial impact of the impending implementation of Ordinance No. 14900-2024, otherwise known as “An Ordinance Prescribing the Revised Schedule of Fair Market Values of Real Property in Cagayan de Oro, and for Other Purposes.”

Enacted on September 9, 2024, and taking effect on January 1, 2026, the ordinance prescribes a revised schedule of fair market values for real property, with projected assessment increases ranging from 50% to as much as 300%.

While acknowledging the necessity of revaluation to align property assessments with current market values, the chambers emphasized that the timing coincides with a financially demanding period for businesses.

January 2026 marks the renewal of business permits and licenses, alongside rising compliance costs, potential wage adjustments, and expected increases in utility expenses.

The proposed three-month extension of the 20% RPT discount, the chambers noted, would help ease cash-flow pressures during the transition to the revised valuations, reduce the risk of penalties or defaults, and support business continuity.

Such a measure is also seen as vital in preserving jobs, sustaining consumer spending, and maintaining a stable and investment-friendly local business climate. (JAO/SP)