Ordinance giving incentives on parking developments deferred

THE COUNCIL deferred for next week’s regular session the proposed ordinance that will provide special tax incentives for properties to be developed as parking spaces and buldings in the city.

Councilor Jimmy G. Dureza, chair of the committee on trade, commerce and industry, is the proponent of the proposed ordinance, which seeks to alleviate the traffic condition by encouraging investments in parking buildings and lots.

However, the proposed ordinance excludes parking spaces required under the National Building Code for property or building owners/developers.

All existing parking spaces of establishments and shopping malls in excess of what is required by law but passed through the approval of the Office of the Building Official prior to this ordinance were also excluded.

Based on the draft of the proposed ordinance, included in the incentive package for newly parking facilities exempt land owners and developers from the payment of basic real property tax for land. However, the enjoyment of such benefit shall continue until property shall have been converted into another use.

Land owners and developers also exempted from payment of real property tax within five years from which the parking building has started to operate. But it was stressed that the building must be exclusively used as parking space for a period not less than five years.

The ordinance also puts a three-story maximum ceiling for properties of 500 square meters or less. Properties that are more than 500 square meters have no limit on the number of floors.

According to the proposed ordinance, land owners and developers are also exempted for payment of business tax for a period of five years. In case of cessation of business prior to the five-year period, the benefit shall be forfeited and the business tax shall be assessed commencing from the time of the grant until the business ceases to operate.

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