Tax holiday measure for parking spaces amended

A LEGISLATOR yesterday proposed to cut the tax exemption from five to two years in for properties to be developed as parking buildings or spaces.

Councilor Diosdado Mahipus questioned the five-year tax holiday given to the lawn owners and developers as it violates the uniformity of the tax exemption, which only allows for two years.

However, Davao City Investment Promotion Center (DCIP) officer-in-charge Lemuel Ortonio explained that they decided to extend the holiday to encourage more investors to put up parking facilities.

Councilor Jimmy G. Dureza, chair of the committee on trade, commerce and industry, agreed to amend the proposed special tax incentives for parking spaces in the city bill to accommodate Mahipus’ request, but only for the parking space.

Meanwhile, parking buildings with two or more floors will have a five-year exemption. The item was passed on second reading yesterday.

Initially, the proposed ordinance was deferred on Monday to fine-tune its several provisions.

The purpose of the ordinance seeks to alleviate the traffic condition by encouraging investments in parking buildings and lots.

Based on the draft of the proposed ordinance, included in the incentive package for new parking facilities exempt landowners 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.

Meanwhile, all existing parking lots/buildings required by the National Building Code but improved or renovated shall enjoy real property tax incentive of the land and building but only one half of land area and building is exempted.

For the business tax of all existing parking lots/buildings will also enjoy a one half tax exemption.

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