The Iloilo City Government is hoping to generate P400 million should the proposed amendment to the schedule of market values (SMV) for land push through next year.

The SMV is an approved schedule of unit base market values for different classes of real property in the local government unit. It serves as the basis for the appraisal and assessment of real properties in local government units for real property taxation purposes, according to the Department of Finance website.

City Assessor Cesar Jalbuena Jr. said the Local Government Code of 1991 mandates the general revision of the SMV once every three years but the last amendment in the city was done almost 18 years ago.

“Our existing valuation record based on our record was 2006 so that is why it is outdated or no longer realistic,” he said.

Jalbuena added that while real property also covers buildings and improvements, the revision would only cover the market value for land, as requested by Mayor Jerry P. Treñas.

Treñas, in a separate interview, cited the need to revise the SMV because of the devolution where services that used to be provided by the national government are being passed on to the local government while it also has to have funds for its various projects.

He said he was surprised that the city government would be the one to purchase medicines and vaccines that were used to be supplied by the Department of Health and contraceptives from the Commission on Population, entailing more than a P100 million budget.

“(The) Mandanas Ruling is good for the LGU but for the next two years, we will be affected because of the collections during the pandemic,” he said, adding that this year, the city government is looking at a deficit of P300 million to P350 million.

Jalbuena said the market value differs depending on the development of an area.

A consultative meeting was conducted as early as December last year while a public consultation was held on Tuesday informing stakeholders of the proposed revision in schedule.

The proposal has been endorsed to the Sangguniang Panlungsod (City Council), which is expected to hold a series of public hearings before the passage of an ordinance amending the schedule of market values.

“With the increase in value, we will have an additional collection that will go to services,” he said.PNA