QC Exempts Senior Citizens From Land Transfer Tax

Quezon City Mayor Herbert M. Bautista is set to give additional privilege to the city’s senior citizens who own residential real property, this time exempting them from paying transfer tax on property titled under their name.

            This after Mayor Bautista signed last February 25 QC Ordinance SP-2378,S-2014, authored by  Councilor Raquel S. Malangen, which grants an exemption from payment of transfer tax,  pursuant to the Quezon City Revenue Code, to registered senior citizens of the city concerning the sale of residential real properties registered under their names within the territorial jurisdiction of Quezon City.

            Under the ordinance, a senior citizen, who duly registered with the Quezon City Office for Senior Citizens Affairs (QCOSCA), is entitled to a tax exemption by the QC government once he/she intends to transfer or sell a residential real property titled under his/her name. This is intended to lessen the burden due to the tax involved under Republic Act No. 8424, as amended, or the National Internal Revenue Code, and the QC Ordinance No. SP-91, Series of 1993, as amended, entitled the QC Revenue Code.

            However, the new ordinance provides that the residential real property sought to be exempted shall be only for the purpose of acquiring or constructing a new principal residence within eighteen (18) calendar months from date of sale of the real property.

            Under the ordinance, the tax exemption can only be availed by city’s senior citizens once in every ten (10) years.

            Should there be no full utilization of the said purpose, the said residential real property shall be subject to the transfer tax imposed under Article 11 Section 25 of Ordinance No. SP-91, Series of 1993, as amended.

            The transfer tax exemption will only cover principal residential real properties valued at not more than five million pesos (Php 5,000,000.00) based on the zonal value or consideration of the sale thereof, whichever is higher.

            However, if the residential real properties are commonly owned by a non-senior citizen, a proportionately reduction of interest/ share of said senior citizen will be computed and deducted accordingly.

            The ordinance said that the residential real properties sought to be transferred must  be free from any tax deficiency.