Law Summary

Introduction

This ordinance, enacted by the Quezon City Council, grants an exemption from the payment of transfer tax for registered senior citizens concerning the sale of residential real properties registered in their names within Quezon City.

Legal Basis

• Local Government Code Reference: The ordinance is authorized under Section 192 of Republic Act No. 7160, allowing local government units to grant tax exemptions through duly approved ordinances.
• Quezon City Revenue Code: It references Chapter Four, Article 11, Section 25 of Ordinance No. SP-91, Series of 1993, which imposes a transfer tax on real property transactions at a rate of 0.75%.

Definitions

• Residential Real Properties: Defined as house and lot classified as principal residences, occupied for at least ten (10) years, certified by the Barangay Captain.
• Registered Senior Citizens: Must be Philippine citizens, at least sixty (60) years old, and registered with the Quezon City Office of Senior Citizens Affairs (OC OSCA).

Exemption from Transfer Tax

• Eligibility: Senior citizens can avail of a tax exemption on the sale of residential properties registered under their names.
• Purpose of Sale: The sale must be for the purpose of acquiring or constructing a new principal residence within eighteen (18) months from the sale date.
• Limitations:
  • The exemption can only be claimed once every ten (10) years.
  • The value of the property must not exceed Five Million Pesos (Php 5,000,000.00).

Provisions for Co-Ownership

• Shared Ownership: If the residential property is co-owned with a non-senior citizen, the exemption will be proportionately reduced to the senior citizen’s share.

Conditions for Exemption

• Outstanding Taxes: Properties must be free from any deficiency taxes prior to eligibility for exemption.

Implementation and Effectivity

• Publication Requirement: The ordinance will take effect fifteen (15) days after publication in a newspaper of general circulation.
• Enacted Date: The ordinance was enacted on December 15, 2014, and approved on February 25, 2015.

Key Takeaways

• The ordinance provides significant financial relief for registered senior citizens in Quezon City by exempting them from transfer tax on the sale of residential real properties.
• Strict eligibility criteria and conditions are set to ensure that the exemption is used for its intended purpose, i.e., acquiring a new principal residence.
• The ordinance emphasizes the need for compliance with existing tax regulations and limitations on the frequency of tax exemption claims.