I MPROVING L AND G OVERNANCE THRU LGU I NITIATED LAM R EFORMS IN THE P HILIPPINES Brian Garcia, Floradema Eleazar and Ma. Lourdes Reyes Land and Governance

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  • I MPROVING L AND G OVERNANCE THRU LGU I NITIATED LAM R EFORMS IN THE P HILIPPINES Brian Garcia, Floradema Eleazar and Ma. Lourdes Reyes Land and Governance Innovations Consultants, Inc. (LGI) (formerly Land Equity Technology Services, Inc.) Presentation to the Annual World Bank Conference on Land and Poverty March 24-27, 2014, Washington D.C.
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  • Presentation Outline I.Policy and Institutional Context of LAM in the Philippines II.Scope of LGU LAM innovations III.Outcomes and Impacts IV.Prospects for Upscaling Based on experience of PA-LAMP2 Innovation Support Fund (AusAID/WB) and ADB-JFPR Support to Local Government Revenue Generation and Land Administration Reform (REGALA Project)
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  • Agency and LGU Roles in LAM in the Philippines Agencies and RolesLGU Roles DENR Surveys and mapping First time titling Review and approval of subdivision plans Records Produced LRA/RoD Registration of titles and transactions Review and approval of subdivision surveys Cadastral maps Free Patents and parcel claims data Approved subdivision plans, new parcel records Title records Transaction records Parcel ownership records Approved subdivision plans, new parcel records Property tax mapping Land assessment and valuation Land use planning Records Required LGU base maps Parcel records Updated property ownership records Hazard/DR maps
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  • LAM Situation and Impact on LGUs National LAM Situation: Agencies operate in silos Survey incomplete, 11 M parcels untitled DENR records in paper form Lost, incomplete, spurious records Double/overlapping records No records and data standards No sharing of records Impact on LGUs: Inaccurate base maps Outdated, incomplete parcel ownership information Unreliable, incomplete tax maps High proportion of untitled properties Impact on Governance: Low collections from land tax = 59% average High dependence on national government funding Land conflicts Low quality of land use plans Limited investments for property development
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  • LAM Partnership Framework at the LGU
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  • Scope of LGU Led LAM Reforms Setting up LAM Interagency partnerships and coordination mechanisms (LGUs and national agencies) Establish ULIS and DCDB Build Up, preparation of Cadastral Index Maps Systems Development Computerized Data Bases and GIS of Property Tax Assessments and Collection Property Valuation, Tax Compliance Studies, SMV Revision, Updating of Local Revenue Code Land Tenure Improvement Planning and Titling Systematic Adjudication, Taxation and Mapping (SATM) Comprehensive Land Use Planning (CLUPs) involving hazard and DRR/CC concerns, investment and city development planning Establishment of LAM - Business One Stop Shops (BOSS) LGULAMMODULESLGULAMMODULES LGULAMMODULESLGULAMMODULES
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  • Participating Local Governments LAM ModulesBayawan City Legazpi City Tayabas City San Carlos City Alaminos City Ilocos Norte Ligao City San Jose de Buenavista Interagency Coordination Dbase and Systems ULIS and DCDB Land Use Planning Valuation and Taxation Land Tenure Improvement Business One Stop Shop
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  • Pre-LAM Interventions Large proportion of untitled and unsurveyed lands Limited inter- agency coordination Poor and costly access to LAM services especially titling Limited revenue collection from real property taxes http://ajrakoni.files.wordpress.com.2011.09_filipino-farmer Poor land records management and access Bayawan City
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  • Benefits and Impacts Increased Local Revenues 2% to a high of 10% increases in Real Property Tax collections 7.6% to 19.5% increases in business tax collections Sources of increased revenues better tax coverage as land records were completed and updated; improved detection of delinquent tax payers through the computerized system, and linking of databases between the Assessors and Treasury Offices; Less discretion in computation of taxes and fees due, with computerization of records computerized assessment of taxes due; and enhanced analysis of the property tax base. Increased collections from newly titled properties
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  • Benefits and Impacts Prospects for further increases City Council approval of updated schedule of market values, new tax rates for properties Discovery of new parcels with DCDB build up backed up by land records from DENR and RoD Rationalization of land use plans and its implementation with zoning ordinances Local council approval of updated revenue codes Greater coverage of tax mapping, computerization and mapping activities Roll out of titling.
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  • Increased Incomes A Few Examples
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  • Increases in Revenues, Million Php City/LGU20112012% Increase Bayawan RPT13.8914.091.5% Business Taxes and Fees12.2813.217.6% Legazpi RPT40.4043.818.4% Business Taxes and Fees103.411511.6% Tayabas RPT50.4055.389.8% San Carlos RPT29.2530.965.8% Business Taxes and Fees34.8738.9211.6% Ligao City RPT7.68.298.3% Business Taxes and Fees16.2819.4519.5%
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  • Increases in Revenues, Million Php City/LGU20112012% Increase San Nicolas RPT10.7315.114.03 Business Taxes and Fees15.2525.8615.04 Piddig RPT2.183.0630% Business Taxes and Fees0.891.3115.04% Alaminos RPT8.689.175.64% For San Nicolas and Piddig, data are for 2013
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  • The Case of Legazpi City Indicator 1: Continued increases in city revenues of at least 5% derived from land tax and LAM agency service derived from land tax and LAM agency service provision starting January 2013 provision starting January 2013
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  • The Case of Bayawan City
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  • w w w. b ay a w a n c i t y. g o v. p h [email protected] 0 3 5. 5 3 1. 0 0 2 0 / 2 1
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  • Benefits and Impacts 2 Improved Capacities, LAM Service Delivery Improved quality of records Computerization of property assessment and collection Building GIS based parcel maps, thematic overlays to enable better planning and investments Reduced time and cost to clients for basic services: titling, property tax assessment and payment; processing of business permits; etc. Trained staff in LAM and planning functions
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  • Improved Capacities A Few Examples
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  • BEFORE & NOW OLD MANUAL TAX MAPS GIS-BASED TAX MAPS
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  • BEFORE & NOW OLD MANUAL SYSTEM COMPUTER-AIDED SYSTEM
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  • Titled by Inventory Titled as per RLTA Adjudicated & Appraised Survey Conducted w w w. b ay a w a n c i t y. g o v. p h [email protected] 0 3 5. 5 3 1. 0 0 2 0 / 2 1 Tenure Improvement
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  • Subdivided RPU RPU with tax delinquency Tax Map Sections in color Tax Compliance
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  • Thematic Mapping
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  • Hazard Mapping
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  • Land Use and Development Plan Education/ Research Development Industrial Areas Coastal Waterfront Development CBD Expansion Commercial/ Residential Ecotourism Riverbank Rehab & Dev Retirement Village/ Low Density Residential Residential/Commercial New Government Center Urban Agriculture Residential Areas Residential Areas
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  • Benefits and Impacts 3 Improved Governance Transparency through computerization of property and business tax payments Reduces discretion in the assessment of payments to be made by taxpayers. Minimizes opportunities for graft and corruption in tax payments. Participation Embedded in all phases of work to seek public views on proposed strategies (i) decisions on land use (ii) public consultations on SMV revision (iii) community based titling procedures
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  • Benefits and Impacts 3 Improved Governance Improved accountability Open process of clearly assigning responsibilities (LGUs, agencies, staff) Strengthened capacities of staff involved in execution of treasury, valuation, planning and development functions; accountability of these offices is enhanced in the course of their work. Monitoring of revenues and identification of priority projects that are sensitive to the needs of the constituents encourages accountability in decision making and budget allocation. Equity in tax burden Analysis of SMV options, distributional impacts of proposed revisions Ensures owners of low valued properties do not disproportionately carry the bigger tax burden.
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  • Prospects for Upscaling LAM reforms beneficial to LGUs Facilitates execution of LGU functions Provides clear direct benefits to public HOWEVER, UPSCALING WOULD REQUIRE: Enabled national LAM agencies to support LGUs Identification of national coordinating mechanism to ensure synergy National government to address: (i) silos in execution of mandates; (ii) overlaps/duplication in responsibilities; (iii) weak state of land records; (iv) lack of data sharing among agencies Open access to land records and data by LGUs
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  • I F S UCCESSFUL IN O VERCOMING N ATIONAL L EVEL C ONSTRAINTS, T HERE WILL BE B ETTER P ROSPECTS FOR R APID, S YSTEMATIC AND COST EFFECTIVE R EPLICATION OF LGU D RIVEN LAM R EFORM M ODEL I F NOT, T HEN LGU S W OULD BE L EFT TO T HEMSELVES TO A DDRESS LAM I SSUES T HROUGH I NDIVIDUAL L OCAL I NITIATIVES WITH LESS I MPACTS, AND H IGH C OSTS