Bureau of Local Government Finance Opinion

July 1, 2002 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION The City Secretary City Council Angeles City S i r : This refers to your letter dated May 23, 2002, inquiring in behalf of the Chairman and members of the Committee on Laws if "granting amnesty on penalties and other surcharge on real property tax incurred by delinquent taxpayers," is within the power of that Body to legislate and approve the same and if not, requesting for the requirements necessary to validly approve said proposed Ordinance. In this connection, attention is invited to Section 276 of R.A. No. 7160, also known as the Local Government Code of 1991, which is quoted hereunder: "SEC. 276. Condonation or Reduction of Real Property Tax and Interest . In case a general failure of crops or substantial decrease in the price of agricultural or agribased products, or calamity in any province, city or municipality, the sanggunian concerned by, ordinance passed prior to the first (1st) day of January of any year and upon recommendation of the Local Disaster Coordinating Council , may condone or reduce, wholly or partially, the taxes and interest thereon for the succeeding year or years in the city or municipality affected by the calamity. (Emphasis supplied) Evidently, condonation or reduction of real property taxes and the interests due thereon, can be availed of upon the enactment of an Ordinance by the local sanggunians, together with the recommendation of the Local Disaster Coordinating Council of the locality on any of the following causes, to wit: 1. General failure of crops; 2. Substantial decrease in the price of agricultural or agribased products; and 3. Calamitous event. In view hereof, your query is answered in the affirmative. However, the Ordinance to be enacted by that Body must be guided by the abovequoted provision of law in which any of the abovementioned causes must be present, and must be with the recommendation of the Local Disaster Coordinating Council of the locality concerned. DCISAE We trust that we have enlightened you on the matter. Very truly yours, (SGD.) JUANITA D. AMATONG Undersecretary and Officer-in-Charge, BLGF