Challenges in paying Real Property Tax in the Philippines

According to the Local Government Code of 1991 or Republic Act no. 7160, property owners are required by the law to pay the Real Property Tax (RPT) every year. For the government to collect real property taxes, they need to identify the owner of every piece of real property. Tax mapping has an essential role since it provides the public with vital real property tax information, also a basis of an adequate tax record.

However, most regions, including Caraga, are having problems due to the outdated valuation references and low collection processes since they are still not using the advanced tools in tax mapping and payment methods.

There are two ways in paying taxes in the Philippines: First is through the Local Government Unit (LGU) that is often delegated to the Treasurer's Office, and the second one is through online. Some places, specifically in the National Capital Region, are already using the online mode of payment, which makes it a lot easier and less hassle because they are no longer experiencing long queues for them to pay.

Unfortunately, with the given two options in paying the Real Property Tax (RPT), people from Visayas and Mindanao are still facing knots in paying their RPT since online payment is still not available. Most of the payers put too much effort into visiting LGUs where their properties are located, experiencing a long queue, and use old-fashioned ways of processing the payment to comply with their responsibilities as taxpayers.

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The Panacea

The Caraga State University, through its Technology Business Incubator (TBI) – Navigatu has successfully developed a startup company that is now on the verge of taking off as a full-blown enterprise. MapX or Manage Your Assets, Properties and Map It For Visualization is born out of the university’s previous successful projects, namely: the Philippine Light Detection and Ranging (Phil LiDAR) Project 2, and Information and Communication Technology Support for Responsible Mining (ICT4RM).

MapX is a platform that provides end to end solutions for local government and real property owners. It is a tax mapping service using Web Geographic Information System (GIS) to transform property boundaries digitally using interactive maps. Moreover, our platform utilizes Artificial Intelligence (AI), specifically machine learning and data mining, for accurate map description and updated fair market valuation. Further, it uses geospatial technology to overlay maps that will help improve assessment and efficient estimates. It also provides a notification and collection system through its mobile application for real property owners that use blockchain technology for a much more stringent and safer transaction.

The MapX platform is currently under halfway through its development. It aims to service its first clients not later than the end of 2020. MapX is probably the first tax service company tailor-fit to address the needs of both real property owners and local government units. MapX’s ground breaking services, including all its features, are expected to help shape the future of tax mapping, assessment, and collection at the same time put an end to a decade long problem in tax mapping and collection.