In a significant development for Cebu, the number of first-class municipalities has soared to 25, a sharp increase attributed to a groundbreaking real property tax law. Cebu Provincial Assessor Michelle Languido, who hoisted the Philippine flag during a recent flag-raising ceremony at the Capitol, announced this milestone. She noted that when she started her tenure in 2022, only eight municipalities held this prestigious status.
The surge in classifications is largely due to Department Order 74-2024, signed by Finance Secretary Ralph Recto, and Republic Act 12001, known as the Real Property Valuation and Assessment Reform Act (RPVARA). These legislative measures have set new standards for property valuation, making it a more precise science. Languido emphasized the critical role of municipal assessors in this process, highlighting that income from real property taxes has been a significant factor in the reclassification of these areas.
RPVARA, effective since June 13, 2024, has also removed residency requirements for municipal assessor applicants, aiming to dismantle the ‘padrino’ system and ensure unbiased property valuations. Languido stressed the importance of appointing competent assessors to meet the challenges of maintaining first-class status.
The automatic income classification guidelines under D.O. 74-2024 consider annual regular income from various revenues, including fees and receipts. This has helped propel Cebu to the top of the list as the richest province in the Philippines, with assets valued at around PHP309 billion according to the Commission on Audit’s 2023 Annual Financial Report, far surpassing Rizal province’s PHP37.3 billion.