Granting Amnesty or Relief on Penalties, Fines, Surcharges, Interests, and/or Arrears to Delinquent Real Property Taxpayers (The 2017 Real Property Tax Amnesty Ordinance of the City of Baguio)

January 9, 2017 BAGUIO CITY ORDINANCE NO. 001-17 GRANTING AMNESTY OR RELIEF ON PENALTIES, FINES, SURCHARGES, INTERESTS, AND/OR ARREARS TO DELINQUENT REAL PROPERTY TAXPAYERS (THE 2017 REAL PROPERTY TAX AMNESTY ORDINANCE OF THE CITY OF BAGUIO) Introduced by Hon. City Vice-Mayor Edison R. Bilog, Hon. Leandro B. Yangot Jr.,Hon. Elmer O. Datuin, and Hon. Peter C. Fianza, and coauthored by Hon. Edgar M. Avila, Hon. Joel A. Alangsab, Hon. Faustino A. Olowan, Hon. Maria Mylen Victoria G. Yaranon, Hon. Lilia A. Farias, Hon. Arthur L. Allad-iw, Hon. Benny O. Bomogao, and Hon. Michael L. Lawana, and based on the report and recommendation of the Committee on Appropriations and Finance. Explanatory Note Taxes are the lifeblood of the government. Without revenue raised from taxation, the government will hardly be able to fulfill its mandate. Without taxes, the government, which is expected to respond in the form of tangible or intangible benefits intended to improve the lives of the people and enhance their material and moral values, would be paralyzed for lack of motive power to activate and operate it. In the City of Baguio, it is noted that there is a substantial amount of unrealized revenue in the form of delinquent real property taxes due and collectible by the City Government of Baguio as of 31 December 2016. Among the perceived reasons for this include the fiscal crisis and several widespread disasters that befell not only the city but our country as well. With this situation, the city needs to strengthen its financial capacity by increasing revenue collection in order to meet the demand for public service delivery. Section 192 of Republic Act No. 7160, otherwise known as the Local Government Code of 1991, as amended, provides that "local government units may, through ordinances duly approved, grant tax exemptions, incentives or reliefs under such terms and conditions as they may deem necessary." In view of all the foregoing, the grant of tax amnesty or relief from delinquent real property taxes is appropriate at this point in time in order to boost the city's collection effort. The grant of tax amnesty, however, should not be misinterpreted as giving premium for delinquent taxpayers but for the purpose as above-stated. Once approved, delinquent taxpayers who failed or refused to pay their taxes because of accumulated penalties or surcharges and for whatever reasons will definitely be encouraged to pay their obligations thus accelerating the city's collections thereof. caITAC NOW, THEREFORE, on motion of Hon. Datuin, Hon. Avila, and Hon. Fianza, seconded by Hon. Yaranon, Hon. Lawana, Hon. Bomogao, Hon. Olowan, Hon. Farias, and Hon. Alangsab, BE IT ORDAINED BY THE SANGGUNIANG PANLUNGSOD (CITY COUNCIL) IN SESSION ASSEMBLED THAT: SECTION 1. Title. This Ordinance shall be known as "The 2017 Real Property Tax Amnesty Ordinance in the City of Baguio." SECTION 2. Coverage . 1) A general tax amnesty is hereby granted to taxpayers in the City of Baguio who are delinquent in the payment of their real property taxes as of 31 December 2016; 2) It shall likewise include the following: a) Those properties which are undeclared and subject to taxes; b) Those properties which are declared but the real property taxes thereon have not yet been paid; c) Those properties included in public auction conducted by the City Government of Baguio but have not yet been purchased by private persons or entities; d) Property owners with pending cases in court whose ownership are in question; and e) Properties sold through public auction whose ownership has not been officially transferred due to non-issuance of final bill of sale by the City Government of Baguio. SECTION 3. Prescribed Period to Avail of the Tax Amnesty or Relief. 1) The prescribed period for the tax amnesty or tax relief shall for a period of six (6) months and shall take effect 30 days from the publication of this Ordinance; 2) All penalties, fines, surcharges, interests and/or arrears, if any, shall be condoned only upon settlement of real property taxes if paid within the prescribed period; acEHCD 3) Payments of real property tax under this Ordinance shall be made either in cash or installment basis: Provided, That it will be paid during the amnesty period as fixed in this Ordinance and applied as of 31 December 2016; 4) Only after said delinquencies are settled may tax payments be credited to the current period; and 5) Thereafter, no further tax amnesty shall be granted after the expiration of the tax amnesty period. SECTION 4. No public auction of real properties due to nonpayment of tax delinquencies will be held and initiated by the City Government of Baguio during the amnesty period. SECTION 5. Real properties with delinquent taxes attached thereto after the expiration of the amnesty period shall be offered for sale at public auction to the highest bidder for the sole purpose of satisfying payment of accumulated delinquent taxes, with the corresponding penalties, arrearages, surcharges, and interests pursuant to existing laws or ordinances. SECTION 6. Filing of Application. The application for amnesty under the provisions of this Ordinance shall be filed with the City Treasury Office on a prescribed form. SECTION 7. Compromise Agreement on Payments on Installment Basis. The City Treasury Office shall be responsible in the preparation and processing of any compromise agreement, together with the corresponding related documents, by and between the taxpayers and the City Mayor for and in behalf of the City Government of Baguio. Any breach in the compromise agreement on the payments under installment basis or, should any installment not paid on its due date, the total unpaid balance of the delinquent real property taxes and the entire amount of penalties shall become automatically due and demandable and shall be enforced in accordance with law. SECTION 8. Separability Clause. If, for any reason or reasons, any part of this Ordinance shall be held unconstitutional or invalid, other parts or provisions hereof which are not affected thereby shall continue to be in full force or effect. SECTION 9. Repealing Clause. All existing ordinances or part or parts thereof which are inconsistent with any provision of this ordinance are hereby repealed or modified accordingly. SECTION 10. Effectivity. This ordinance shall take effect in accordance with the provisions of the Local Government Code of 1991, as amended. EcTCAD Unanimously passed. CERTIFIED CORRECT: (SGD.) EDISON R. BILOG City Vice Mayor and Presiding Officer January 19, 2017 ATTESTED: (SGD.) BRENNER L. BENGWAYAN Secretary to the Sanggunian APPROVED: (SGD.) MAURICIO G. DOMOGAN City Mayor January 20, 2017