THE 20TH City Council approved on final reading the ordinance granting tax amnesty on real property taxes and special levies on real property, in Tuesday’s regular session.
The ordinance is in line with Republic Act No. 12001, known as the “Real Property Valuation and Assessment Reform Act” effective July 5, 2024.
Councilor Myrna Dalodo-Ortiz, committee chair on finance, ways and means and appropriations, said the ordinance applies to all unpaid penalties, surcharges, and interests on real property taxes.
“This is really intended for the delinquent real property taxpayers who have failed to pay the due amount in time, this will give them ample time to settle their obligations,” Dalodo-Ortiz told reporters.
The councilor added following the effectivity of the ordinance, the city is expecting increased revenue collection which is projected to be P4-billion.
This includes Special Education Fund, idle land tax, and other special levy taxes, imposed on real properties within the city, which was incurred prior to July 5, 2024.
“There shall be a condonation on payment of penalties, surcharges, and interests for unpaid real property taxes incurred prior to 5 July 2024, subject to compliance of the guidelines as stated in Section 6 of this Ordinance,” the ordinance reads.
According to Section 6, all accrued penalties, surcharges, and interests will be condoned only upon settlement of the basic real property tax, additional levy on real property for the Special Education Fund, idle land tax, and other special levy taxes, within two years from July 5, 2024, or until July 5, 2026.
Payments may be made in full, either in cash or manager’s check or on installment, provided that the same is made within the same period.
If the taxpayer opts for installment, the payment term must not exceed one year and must not go beyond two years, with a schedule expressed in an agreement to be entered into by the taxpayer with the City Treasurer, with post-dated checks issued for each.
For instance an installment payment is missed, the remaining balance shall be due and demandable. After settling all delinquencies, tax payments will be credited to the current period.
Taxpayers who wish to avail of the real property tax amnesty are advised to consult with the City Treasurer’s Office, to file an application form and payment of the subject taxes.
However, the ordinance stressed that delinquent real properties which have been disposed of at public auction to satisfy the real property tax delinquencies will be excluded from the amnesty.
In addition, the amnesty does not apply to real properties with tax delinquencies that are being paid in line with a compromise agreement, and those real properties with pending cases in court.
After the 2-year amnesty period, all penalties, surcharges, and interests on real property taxes, including Special Education Fund, idle land tax, and other special levies shall be reinstated.
