As Bacolod City stands at a crossroads of rapid modernization and massive debt, the air is thick with talk of “revaluation” and “market values.” To many, these sound like polite synonyms for a higher tax bill. As a CPA and an educator, I believe it is time to peel back the layers of our city’s fiscal status and look at the real-world impact on our households and businesses. In this installment of Grace & Governance, we explore how a national mandate can either be a burden or a balanced reform, depending on how our local leaders choose to wield it.
THE MANDATE: SEEKING FAIRNESS IN THE NUMBERS
We must first acknowledge a fundamental truth: the City Government of Bacolod needs taxes to function. Real Property Tax (RPT) is the most stable and reliable source of local revenue. It doesn’t fluctuate as wildly as sales taxes, and it stays rooted in the community. It is for this reason that the Philippine National Government passed the Real Property Valuation and Assessment Reform Act (RA 12001).
The intent of this law is noble: to make realty taxes uniform, just, and fair across the archipelago. For decades, outdated valuations led to a fragmented system where some paid too much while others paid too little. RA 12001 mandates that Local Government Units (LGUs) properly implement these updates to reflect current market realities. On paper, this is a move toward professionalized, data-driven governance.
THE SHIELD: BUILT-IN PROTECTIONS
However, every “sword” of taxation must have a “shield” of protection. The legislators who crafted RA 12001 were well aware of the danger of “tax shock”—the sudden, overwhelming increase in tax obligations that can lead to foreclosures or business closures. To prevent this, the law has built-in safety nets.
Specifically, the law allows for a two-year amnesty on penalties and, more importantly, provides the LGU the power to “cap” or phase in the implementation. This means the law recognizes that even if a property’s value has tripled over the last decade, the owner’s ability to pay hasn’t necessarily tripled overnight. These protections are the “Grace” in the governance of taxation.
THE LOCAL RESPONSIBILITY: BEYOND NATIONAL MANDATES
This is where our local leaders come in. While the law is a national mandate, the implementation is local. It is the responsibility of the Bacolod City Government to ensure that these safety nets are not just theoretical possibilities but are legally binding through a local ordinance.
Bacolod is currently navigating a P4.75 billion budget for 2026, a significant portion of which is dedicated to servicing a P4.4 billion loan. We see “extravagant” structures rising—the new Legislative Building and various high-cost infrastructures. While infrastructure can drive growth, we must ask: Is the push for revaluation driven by a genuine need for service delivery, or by the desperate need to pay back billions in debt?
The city government must ensure that the amount of realty tax sought is only that which is required for funding the incremental cost of providing social services and public infrastructure that actually enhances land values. We should not be taxed more just to pay for “vanity projects” that do not improve the drainage in our streets or the health services in our barangays.
A CALL FOR MEANINGFUL PARTICIPATION
Good governance is not a monologue; it is a dialogue. The residents of Bacolod City—landowners, retirees, entrepreneurs, and laborers—must bind themselves together. We must participate actively and meaningfully in city council hearings and consultations.
We are not merely “taxpayers”; we are stakeholders. Our participation should be focused on two critical goals:
Graduated Implementation: Demanding that any increase be phased in over several years via a clear ordinance.
Total Transparency: Ensuring that the Public-Private Partnerships (PPP) and debt-funded projects are fully transparent and operational. We deserve to see the “math” behind how our tax pesos are being used.
THE PATH FORWARD
Progress should never come at the cost of the people’s security. By leveraging the safety nets of RA 12001, Bacolod can achieve a fair tax base without breaking the backs of its citizens. But this will only happen if we, the public, remain vigilant. We must monitor our leaders to ensure that the taxes we pay are used for the common good, not just for the construction of monuments to political ambition.
As we move forward, let our battle cry be simple: Fair Taxes, Fair Implementation, and Full Transparency. Only then can we say that our city is truly moving toward a future defined by both Grace and Governance.*
