Tax incentives for parking spaces hurdle 2nd reading

A PROPOSED ordinance that will provide special tax incentives for properties to be developed as parking spaces and buildings in the city was passed on the second reading on Tuesday, Jan. 9.

The City Council has approved the proposed ordinance authored by Councilor Jimmy G. Dureza, chair of the committee on trade, commerce and industry, which seeks to alleviate the traffic condition by encouraging investments on parking buildings and lots.

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

Based on the draft of the ordinance, the open parking space exempts land owners and developers from the payment of basic real property tax for land for two years while the parking buildings with two or more floors will get a five-year exemption.

However, the privilege will stop if the property will be converted into another use.

Land owners and developers also exempted from payment of business tax for parking spaces for five years. But it was stressed that the building must be exclusively used as parking space for not less than five years.

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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