In a text message, the Davao City 1st District representative  said the proposed increase in real estate tax to more than 1,000 percent is illegal.

"The City Government must clearly justify by written and public accounting how it is spending and has been spending at least P3 billion per year of Davao City taxpayer’s money and explain where it is being spent and how it is being allocated and spent," Nograles said.

The Dabawenyo Speaker supported the position of the Davao City Chamber of Commerce  in opposing the real estate tax hike.

"The Davao City Chamber of Commerce's position on the excessive real estate taxes is truly justified. There is hardly nothing to see in terms of projects and visible infrastructure accomplishments. It's time for public written accounting of projects implemented by the city for public transparency. It's only fair if taxpayers are to shoulder all these public expenses," Nograles said.

In a DCCCI position paper, the group, representing close to 400 corporate and individual members, members of the Landowners Association of Davao Inc., members of the Davao Board of Realtors Foundation Inc., and property developers of high and low cost housing, expressed its opposition to the increase in the fair market value of real properties for real property tax purposes currently being imposed by the Davao City local government through Ordinance 040-07.

DCCCI said that though they respect the City Government's decision, the increase is however very untimely.

"The world is in the midst of an economic recession. We, in Davao City, have begun to feel its effects in the palpable slowdown of consumer spending. Shopping centers such as malls and public markets, and retailers such as department stores, appliance stores, as well as restaurants and services, and many other establishments, are all experiencing declines in their sales. The burden of higher realty taxes at this time will be counter-productive and will help deepen the recession locally, rather than alleviate it," the group said.

DCCCII also said that the current increase in the fair market values of real properties amounting to 40% up to 1,100% is unjustifiably excessive and confiscatory.

This, the group said, has resulted in the dramatic increase in the assessed market value of per square meter by up to 1,100% in many subdivisions in the city.

"To cite a few examples, the market value of residential lots in Garcia Heights Subdivision has risen from P250/sqm to P2, 500/sqm (or by 900%). The value of residential lots in Ledesma Village has increased from P250/sqm to P3,000 /sqm (or by 1,100%). Newly developed subdivisions and several districts (e.g., Robinson Highlands/Crest, SM Drive, Ecoland Drive, Generoso Bridge, etc.), which had no pre-existing market valuations, have likewise been imposed market values of up to P4,000, which is higher than the values assigned to other existing subdivisions which are more progressive, developed and with higher actual market values. The low cost housing in Emily Homes, Cabantian Buhangin having an average of 100 square meters in area, has also increased the assessed market value from P10,000 to P50,000," DCCCI said in its position paper.

They said "this staggering, one-time increase in the market values of the real properties within the jurisdiction of Davao City is excessive and confiscatory because many lot owners will not be able to pay such extremely large increases, all within one year."

The group claimed that "due process was also not observed by the City Assessor's Office and Sangguniang Panlungsod (City Council) before this general revision of real property assessments was imposed."

"Various real estate owners/administrators asserted that they have not filed their declaration of property since 2003. These real estate owners/administrators also claimed that no consultation was conducted by the local government unit for purposes of increasing the basis of the realty tax in the past two years," they said.

"This is a clear violation of the provisions of Sec 201 of the Local Government Code and is also the basis of Local Assessment Regulations 1-92 dated October 6, 1992, which prescribe the assessment process and the corresponding component activities which govern the revision of property assessments. These regulations provide that sworn statements declaring the true values of the real properties, as provided under Section 202 of the Local Government Code, shall be collected by the office of the provincial, city and municipal assessors from the real property owners/administrators," the group added.

The group asked the City Government to "rectify the error committed by the Office of the City Assessor of Davao in order to protect the interest of the various owners of real properties located within the jurisdiction of Davao City."

It was learned that Mayor Rodrigo Duterte has called for an executive session Wednesday to discuss the matter.

Vice Mayor Sara Duterte, meanwhile, said: "City Hall should be prepared to answer all the questions."