Law Summary
Imposition of Transfer Tax in Quezon City
- Quezon City Revenue Code imposes a 0.75% tax on the sale or transfer of real property within the city based on the higher of total consideration or fair market/zonal value.
- Includes various modes of ownership transfer such as sale, donation, barter.
- Applies to properties except those exempt under national laws like the Comprehensive Agrarian Reform Program.
Burden of Transfer Tax on Senior Citizen Property Owners
- Senior citizens owning residential real properties face the transfer tax upon sale under the National Internal Revenue Code and Quezon City Revenue Code.
Purpose of the Ordinance
- Exempts registered senior citizens from paying transfer tax on sale of residential properties that serve as their principal residence.
- Aims to alleviate hardship on senior citizens residing in Quezon City who transfer their residential lots.
Legal Basis for Tax Exemption
- Taxes are compulsory contributions but LGUs may exempt persons by legislative grace under local ordinances.
Section 1: Naming of the Ordinance
- Designates the ordinance as an exemption grant from transfer tax for registered senior citizens concerning sale of residential real estate.
Section 2: Key Definitions
- "Residential Real Properties": Principal residence within Quezon City, used as habitation for at least ten years, as certified by Barangay Captain.
- "Registered Senior Citizens": Filipino residents of Quezon City, aged 60 or above, registered with the Office of Senior Citizens Affairs (OCOSCA).
Section 3: Tax Exemption Provisions
- Principal residences sold by registered senior citizens are exempt from transfer tax under the Revenue Code.
- The exemption applies if the sale proceeds are used to acquire or construct a new principal residence within 18 months of sale.
- The exemption is available once every 10 years.
- Failure to use proceeds as specified triggers imposition of transfer tax.
- Applies to residential properties valued up to Php5,000,000 based on zonal or sale consideration, whichever is higher.
Section 4: Partial Ownership by Senior and Non-Senior Citizens
- Transfer tax exemption is proportional to the senior citizen’s share if property is co-owned with non-senior citizens.
Section 5: Condition Precedent of Tax Compliance
- Residence must be free of any existing tax deficiencies to qualify for exemption.
Section 6: Effectivity
- Ordinance takes effect 15 days after publication in a newspaper of general circulation.
Enactment and Certification
- Approved by City Council in regular sessions and enacted December 15, 2014.
- Certified and approved by the City Mayor as of February 25, 2015.