JULY 1, 2016

NR # 4248B

The Filipino Home should be exempt from real property tax

A re-elected lawmaker is not giving up on his advocacy for the State to exempt the
family home from 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 (5 th
District, Camarines Sur) explained.
The Camarines Sur lawmaker had been pushing for HB 1649 during the just
concluded 16th Congress but, to his regret, 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 re-file his pet bill this July.
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 No. 209 as amended.
The Family home, constituted jointly by the husband and the wife or bay 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 states:
The author 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 pointed out.
Fortuno explained that, under this circumstance, the aforementioned Constitutional
guarantee will be rendered meaningless because the very same State which recognizes the
family home as the foundation of the nation will be the same State which 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, the author insists.

Among others, proposed amendment to Article 153 of the Family code is to read as
follows: Art. 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. (amendment in capital letters)
Likewise, Article 157 as proposed shall read: Art 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-thousand) pesos in urban areas, and P500-thousand (from the
current P200-thousand) pesos 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. All others are deemed to be rural areas, the bill provides. (30) dpt