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Unformatted text preview: d. Any adjustments to the rate
structure would have to be petitioned since it is mandated under the 1991 LGC. e Revising Penalties:The penalty structure should be made more aggressive by charging
compound interest on payments due. The City however, has little independent power in
this respect since penalties are fixed under the Local LGC. 4.7 Conclusion
Under the Code, the local government through the planning council has substantial
powers to institute a mix of taxes. Property and business tax are the two main tax bases for
the City of Olongapo.
Major problems with the property and business tax are related to assessment and
collection of the tax. For property tax the fair market value is underestimated due to absence
of reliable sources of data. Business tax estimates of gross income are also underrepresented. The collection of property tax is done through the Treasury Department while
the Business Tax Department collects the business tax. The collection rate for property tax is
as low as 25 percent whereas the collection rate for the business tax cannot be assessed since
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This document was uploaded on 01/27/2014.
- Winter '13