E rate structure the city should look into the

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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 the tot...
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This document was uploaded on 01/27/2014.

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