Bureau of Local Government Finance Opinion

September 23, 1998 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 3rd Indorsement Respectfully returned to the Provincial Treasurer of Rizal, Pasig City, his within letter of July 31, 1998 requesting advice/opinion on whether the province is still entitled to the share from the proceeds of collection of real property tax delinquencies prior to the effectivity of the cityhood of Antipolo City on April 4, 1998. It is noted that the City of Antipolo was created as a component city under RA 8505 which was approved on February 13, 1998 and ratified in a plebiscite conducted on April 4, 1998. The City Government of Antipolo allegedly insists that all current and prior years' taxes on real property collected after the effectivity of its cityhood shall accrue solely to the city to be shared only with its component barangays. However, that Office opines that the proceeds from the collection of real property tax delinquencies prior to the creation of the city shall still be shared with the province. Section 50 of RA 8505, charter of the City of Antipolo, provides: "Sec. 50. Municipal Ordinances Existing at the Time of the Approval of this Act . All municipal ordinances of the Municipality of Antipolo existing at the time of the approval of this Act shall continue to be in force within the City of Antipolo until the sangguniang panlungsod shall by ordinance provide otherwise." On the basis of the foregoing provision, it is clear that the collections of real property taxes by the newly-created City of Antipolo shall be based on the existing provincial tax ordinance. Hence, the corresponding share of the province from the collections shall still be remitted by the city. It also follows that there is a need for the Sangguniang Panlungsod of the city to enact its own city tax ordinances, pursuant to the provisions of the Local Government Code of 1991, in order that tax revenues may accrue exclusively to the city government of said city. It is hoped that this clarifies matters. cSEaTH (SGD.) ANGELINA M. MAGSINO Deputy Executive Director Officer-in-Charge