Chapter 6: The State of Revenue Generation in Cities - LGRC DILG 10

Figure 6.11 Target Accomplishment Rates of the Super Regions Regarding Percentages of AnnualRevenues Realized, PY 2004Average Accomplishment Rates10090807094.55NationalAv erage97.43NorthernLuzonAgribusinessQuadrangle86.03Metro LuzonUrbanBeltw ay101.0879.28CentralPhilippinesMindanaoSuper RegionSuper RegionsIn sum, most of the cities in the MLUB and MSR had relatively inferior performancescompared to those in the NLAQ and CP in terms of realizing annual revenues. Suchglaring difference is calling for further improvements on the cities located in the MLUBand MSR.Real Property Tax CollectionEfficiency Rate. Under the LGC, onlythe cities and provinces are allowed tolevy real property taxes, which theythen share with other LGUs.Traditionally, RPTs are the largestsources of revenues of the cities asidefrom the IRA they receive from NG.The performances of the citiesconcerning their RPT collections affectthe levels of their independence fromNG - both imaginary and real – interms of their own revenue generation.Figure 6.12 Performance Levels of 109 Cities RegardingReal Property Tax Collection Efficiency Rates, PY 200437(3%)(6%)3(3%)3(3%)93(85%)Very High High Medium Low Very LowMost cities had very high efficiencyrates in their RPT collections whereinabout 85% or 93 cities had efficiencyrates of at least 81% (see Figure 6.12). Seven or 6% of the cities were still considerablyefficient with average rates of 61% to 80%. Meanwhile, nine cities or about 9% still hadto further improve their efficiency rates to catch up with the rest.The national average for RPT collection efficiency rate was higher than the ideal 100%,having posted an average of 103.13% with the cities located in the NLAQ reached thehighest at 129.49% compared with those in the other super regions (see Figure 6.13). The36 THE STATE OF REVENUE GENERATION IN CITIES