Bureau of Local Government Finance Opinion

July 5, 2002 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION The OIC-City Treasurer City of Himamaylan M a d a m : This refers to your letter dated April 16, 2002, posing the following queries: 1. Can the City of Himamaylan enact an ordinance condoning penalties/interests on real property taxes covering CY 2001 and prior years? 2. If not, can the City of Himamaylan avail of the condonation, if the Province of Negros Occidental enact an ordinance condoning penalties/interest on real property taxes covering CY 2001 and prior years?" The abovementioned queries are being made in view of the alleged appeal of the landowners of the said city for condonation of penalties/interests for real property taxes citing the unfavorable trend of global and local economy in the past two decades. However, it is submitted that R.A. No. 9028 (An Act Converting the Municipality of Himamaylan, Province of Negros Occidental into a Component City to be known as the City of Himamaylan) was only signed into law on March 5, 2002, and the Real Property Tax Code of the said city was enacted on November 6, 2001, effective January 1, 2002. In this connection, attention is invited to Section 276 of R.A. No. 7160, otherwise 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 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 for 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. Considering therefore that the enactment of the ordinance by the Sanggunian concerned was made only on November 6, 2001, providing for the condonation of penalties/interest not for the succeeding year or years but for the same year, and the absence of any of the causes mentioned under Section 276 of the Code, the newly created city cannot as yet avail of the condonation of penalties/interest provided therein. With regard to the second issue, this Bureau is of the opinion that the City of Himamaylan can avail of the said condonation or reduction of real property tax and interest, if the Sangguniang Panlalawigan of Negros Occidental will pass the necessary ordinance in pursuance of the abovequoted Section 276 of the Code considering that for CY 2001 and prior years, the City of Himamaylan was still then a municipality of Negros Occidental. acHDTE We trust that this clarifies matters. Very truly yours, (SGD.) JUANITA D. AMATONG Undersecretary and Officer-in-Charge, BLGF CITY INDEX NUMBERS No. City/Metro Manila Municipality City Index Number 1 Laoag 101 2 Baguio 102 3 Dagupan 103 4 San Carlos 104 5 San Jose 105 6 Palayan 106 7 Cabanatuan 107 8 Angeles 108 9 Olongapo 109 10 Navotas 110 11 Malabon 111 12 Valenzuela 112 13 Caloocan 113 14 Quezon City 114 15 Marikina 115 16 San Juan 116 17 Manila 117 18 Mandaluyong 118 19 Pasig 119 20 Taguig 120 21 Pateros 121 22 Makati 122 23 Pasay 123 24 Paraaque 124 25 Las Pias 125 26 Muntinlupa 126 27 Cavite 127 28 Trece Martirez 128 29 Tagaytay 129 30 San Pablo 130 31 Lipa 131 32 Batangas 132 33 Lucena 133 34 Puerto Princesa 134 35 Naga 135 36 Iriga 136 37 Legazpi 137 38 Roxas 138 39 Iloilo 139 40 Cadiz 140 41 Silay 141 42 San Carlos 142 43 Bacolod 143 44 Bago 144 45 La Carlota 145 46 Canlaon 146 47 Bais 147 48 Dumaguete 148 49 Toledo 149 50 Danao 150 51 Mandaue 151 52 Cebu 152 53 Lapu-Lapu 153 54 Tagbilaran 154 55 Ormoc 155 56 Tacloban 156 57 Calbayog 157 58 Dapitan 158 59 Pagadian 159 60 Zamboanga 160 61 Surigao 161 62 Butuan 162 63 Gingoog 163 64 Cagayan de Oro 164 65 Dipolog 165 66 Oroquieta 166 67 Ozamis 167 68 Tangub 168 69 Iligan 169 70 Cotabato 170 71 Marawi 171 72 Davao 172 73 General Santos 173 74 Sagay 174 75 Santiago 175 76 Kabankalan 176 77 Antipolo 177 78 Talisay 178 79 Samal 179 80 Tagum 180 81 Kidapawan 181 82 Tuguegarao 182 83 Passi 183 84 Victorias 184 85 Tacurong 185 86 Bislig 186 87 Koronadal 187 88 Calapan 188 89 Sorsogon 189 90 Digos 190 91 Gapan 191 92 Calamba 192 93 San Jose del Monte 193 94 Tanauan 194 95 Panabo 195 96 San Fernando (La Union) 196 97 Urdaneta 197 98 Vigan 198 99 Candon 199 100 Alaminos 200 101 Himamaylan 201