Fiscal Implication of Agrarian Reform Program to the Real Property Tax Collection in Negros Occidental

Abstract

Property taxation is a component of land governance policies, processes, and institutions that relies on a land administration system, efficient property market, and secure legal rights. This study assessed the fiscal implication of the Comprehensive Agrarian Reform Program (CARP) in the real property tax (RPT) collection when municipalities are grouped by income classification, size of the area, and land classification. This descriptive-comparative and correlational research used secondary data and a checklist administered to 19 treasurers of a first-class province. Using descriptive and inferential analyses, the study yielded "very great" negative fiscal implications. No significant differences were found when municipalities were grouped as to income and size but a significant difference when areas were identified by classification. There is a significant relationship between the fiscal implication and the size of the area covered. The respondents encountered challenges. The study recommends revenue generation strategies, legislative support, and livelihood for agrarian beneficiaries.

Implementation of Assessment Principles, Performance, and Client Satisfaction of Municipal Assessment Offices in Negros Occidental, Philippines

“…This finding implies that regardless of whether the municipality is with bigger or smaller land areas, the application of the assessment principles and tax collection is the same (Zaragoza & Caelian, 2020) because they are guided by the provisions of the Local Government Code. Further, all assessors follow the same ordinance enacted by the Provincial Government in their assessment activities (Plimmer & McCluskey, 2016).…”

“…This finding strengthened the studies of Gayer and Mourre (2012) and Goodfellow (2016) that applying the procedures in the valuation of real properties means ensuring the consistency, uniformity, and accuracy of valuations and applying the rules and regulations and principles of property assessment as provided by law indicates great implementation. It is substantiated by the findings of Felis (2014) and Zaragoza and Caelian (2020) that property taxation determines the revenue potential of local governments and constitutes a stable part of their own resources.…”

“…4 accuracy of valuations and applying the rules and regulations and principles of property assessment as provided by law indicates great implementation. It is substantiated by the findings of Felis (2014) and Zaragoza and Caelian (2020) that property taxation determines the revenue potential of local governments and constitutes a stable part of their own resources.…”

“…The major challenge encountered by assessment offices is implementing the agrarian reform program, which leads to misclassification in the absence of the final survey (Zaragoza & Caelian, 2020).…”

“…In the Philippines, the 1987 Constitution empowers local government units (LGUs) to manage their financial affairs; thus, property taxation is governed by Republic Act 7160, or the Local Government Code of 1991, which enumerates the taxing powers of the local governments. However, Zaragoza and Caelian (2020) found the dominance of the internal revenue allotment (IRA) in revenues of local government units (LGUs) due to inefficient revenue collection caused by inadequate technical skills on appraisal matters. Gomez (2010) found that with proper valuation standardized across LGUs, the credibility of real estate assessment is established and strengthens the basis of real property taxation.…”