The Market Monitor Minding the Nation's Business
A reelected lawmaker is not giving up on his advocacy for the exemption of Filipino homes from the real property tax.
“While the State recognizes the Filipino family as the foundation of the nation, it should also build a solid mantle protecting the family home,” Rep. Salvio B. Fortuno of the Fifth District of Camarines Sur said.
The lawmaker had been pushing for House Bill 1649 during the 16th Congress but time took its toll on his initiative.
“I am confident the 17th Congress will have all the opportunity to take an urgent look into this basic, but very important economic and fundamental concern that affects every Filipino family,” said Fortuno, who is expected to refile his bill this month.
The author is proposing to exempt the family home from the coverage of real property tax by amending Chapter 2, Articles 153, 155 and 157 of the Family Code of the Philippines as contained in Executive Order 209, as amended.
“The family home, constituted jointly by the husband and the wife or by an unmarried head of family, is the dwelling house where they and their family resides, and the land on which it is situated,” the Family Code stated.
Fortuno said that to concretize the mandate of the state to promote the Filipino family as the foundation of the nation, there is need to protect the family home, the place where charity and love begin and all the positive traits of the human being develop and blossom to be great builders of society.
“The stark reality prevailing in our midst has certainly forced some of our countrymen to give last priority or nothing more left to pay for the real property tax that ultimately leads, in worst cases, to foreclosure of their family home,” he said.
Fortuno said that under this circumstance, the aforementioned constitutional guarantee will be rendered meaningless because the very same state that recognizes the family home as the foundation of the nation will be the same State that will foreclose and auction off the family home in case of failure to pay the real property tax.
“The paramount objective of this important piece of legislation is to shield the foundation of the nation from possible wreckage due to economic deprivation by exempting the family home from payment of real property tax,” Fortuno said.
Among other things, the proposed amendment to Article 153 of the Family code is to read as follows: “Article 153. The family home is deemed constituted on a house and lot from the time it is occupied as a family residence. From the time of its constitution and so long as any of its beneficiaries actually resides therein, the family home continues to be such, and is exempt from payment real-property tax or any other tax on real property, execution, forced sale or attachment except as hereafter provided and to the extent of the value allowed by law.”
Likewise, Article 157 as proposed shall read: “Article 157. The actual value of the family home shall not exceed, at the time of its constitution, the amount of P3 million [from the current P300,000] in urban areas, and P500,000 [from the current P200,000] in rural areas, or such amounts as may be fixed by law.”
Furthermore, Article 157 states: “In any event, if the value of the currency changes after the adoption of this Code, the value most favorable for the constitution of a family home shall be the basis of evaluation.”
“For purposes of this Article, urban areas are deemed to include chartered cities and municipalities whose annual income at least equals that legally required for chartered cities.