The Supreme Court (SC) has dismissed a petition filed by the Riverside Group of Companies, owned by the Pison family, which sought to block the implementation of the revised real property tax (RPT) rates in Iloilo City.
The SC junked the Petition for Certiorari, Prohibition, and Mandamus that challenged the city government’s tax adjustment, which the group had earlier described as excessive and burdensome to property owners.
The ruling, penned by Associate Justice Samuel H. Gaerlan, effectively upheld the city’s authority to enforce the updated RPT structure, which took effect in 2026.
The petition had asked the Court to stop the implementation of what the company claimed was a steep increase in property taxes in Iloilo City.
City officials earlier defended the measure, saying the adjustment was long overdue after 18 years without a revision and was necessary to align property valuations with the city’s growing economy.
The Iloilo City Government also maintained that the revised tax system forms part of broader fiscal reforms intended to support urban development and public service delivery.
Riverside Group: No official copy yet
In a media interview, Riverside Group co-owner Atty. Martin Luna Pison said the company has not yet received an official copy of the SC decision, despite reports of its release.
Pison said they were still verifying the ruling and noted that the city government may have received the document ahead of them.
“If confirmed, we will respect the decision, although we are naturally disappointed. We were prepared for any outcome,” he said.
Business impact cited
Pison reiterated the group’s position that the tax increase—pegged at around 300 percent—has significantly affected their operations.
He said several tenants at Riverside properties, particularly in the Boardwalk area in Mandurriao, have already shut down, while more businesses are expected to close by the end of May.
According to him, the closures have also affected employment, resulting in job losses among workers in affected establishments.
Despite this, Pison expressed hope that property owners and businesses will still be able to comply with the revised tax obligations amid broader economic challenges.
Background of the case
The Riverside Group filed its petition on March 11, 2024, questioning the legality and reasonableness of the tax hike.
The firm claimed that its RPT liabilities increased sharply—from P584,283.56 in 2023 to over P7.5 million in 2024 for one entity, and from P376,119.76 to more than P3.3 million for another—calling the adjustment “exorbitant.”
The group traced its operations in Iloilo back to the 1970s, expanding from residential leasing into major commercial developments in Mandurriao, including what is now the Smallville and Riverside Boardwalk areas.
City relief measure in place
To cushion the impact on taxpayers, the city government under Mayor Raisa Treñas has extended a 40-percent discount on RPT payments until 2028.
The SC ruling now allows the continued implementation of the revised tax scheme in the city.IMT
