2011 Mandaue City Tax Condonation on Real Property and Business

October 5, 2011 Excerpt from the Journal of the 57th Regular Session held by the Sangguniang Panlungsod at the Hall of Fame on October 05, 2011. MANDAUE CITY ORDINANCE NO. 12-2011-662 AN ORDINANCE CONDONING PENALTIES ON UNPAID REAL PROPERTY TAXES; AND PENALTIES, SURCHARGES AND INTEREST ON BUSINESS TAXES FOR 2010 AND PRIOR YEARS IN THE CITY OF MANDAUE WHEREAS, Sec. 5, Art. X of the 1987 Constitution provides that each local government unit shall have the power to create its own sources of revenues and to levy taxes, fees and charges subject to such guidelines and limitations as the Congress may provide, consistent with the basic policy on local autonomy. Such taxes, fees and charges shall accrue exclusively to the local governments; WHEREAS, by virtue of the provisions of the Local Government Code of 1991 (RA 7160), the City of Mandaue is given local fiscal autonomy in the implementation of its taxing powers; WHEREAS, a calamity struck the City of Mandaue last 25 January 2011, when it suffered massive flashfloods all over the City submerging most parts and caused the destruction of businesses and properties in the City. Consequently, the City Disaster Coordinating Council and this Body declared the City of Mandaue in a state of calamity; WHEREAS, the financial and economic repercussions of the 2008 global financial crisis caused by the international recession and currency plunge indeed greatly affected most businesses in Mandaue City; WHEREAS, it is a basic rule of taxation that once a tax accrues, it can no longer be condoned nor be granted amnesty. Thus, the condonation or amnesty shall be limited to the penalties on real property tax and penalties, surcharges and interests on business tax; WHEREFORE, on motion of Honorable Demetrio C. Cortes, Jr.,duly seconded by Honorables Ernie N. Manatad, Elstone C. Dabon and Jeric Mikhail Cuizon; The TWELFTH SANGGUNIANG PANLUNGSOD of MANDAUE, with members in session duly assembled, hereby ORDAINS that: SECTION 1. This Ordinance shall be known as the 2011 MANDAUE CITY TAX CONDONATION ON REAL PROPERTY AND BUSINESS, which shall cover only and be limited to the condonation of penalties on delinquent real property taxes and, the penalties, interests and surcharges on delinquent business taxes for the year 2010 and prior years on residential, commercial, industrial and other classes of real properties to include improvements thereon and all types of businesses, respectively, within the taxing jurisdiction of the City of Mandaue. SECTION 2. The condonation on penalties on delinquent real property taxes shall likewise apply to the following: 1. Those real properties which are undeclared and subject to back taxes; 2. Those real properties which were declared delinquent and real property taxes have not been paid as of December 31, 2010; and 3. Those real properties which were declared delinquent but real property taxes have been partially paid as of December 31, 2010, even if already listed to be subject to levy/and or to be sold at public auction. SECTION 3. This condonation of penalties, interest and surcharges on unpaid real property taxes shall not apply to any of the following: 1. Real properties which have been disposed of at public auction to satisfy the real property tax delinquencies; 2. Real properties which are the subject of pending cases in court for real property tax delinquencies; and 3. Real properties with tax delinquencies which are being paid pursuant to a compromise agreement. SECTION 4. The condonation on penalties, interests and surcharges of delinquent business taxes shall likewise apply to the following: 1. Those businesses which have been operating without business permits and have been delinquent of prior years' business taxes; 2. Those businesses which were declared delinquent and business taxes have not been paid as of December 31, 2010; 3. Those businesses which were declared delinquent but business taxes have been partially paid as of December 31, 2010, even if already listed to be subject to levy and/or immediate closure; and 4. Those businesses which are subject for retirement and have not retired their businesses as of December 31, 2010. SECTION 5. The condonation for unpaid penalties on delinquent real property taxes granted herein may be availed of only until February 15, 2012; and for unpaid penalties, interests and surcharges on business taxes herein may be availed of until December 31, 2011. SECTION 6. No public auction of delinquent real properties shall be held from the passage of this Ordinance until February 28, 2012. SECTION 7. To avail of the Tax Condonation Program, the delinquent taxpayer must pay in full the tax on real property and business. In any case the delinquency will not be settled after the date as mentioned in the previous sections of this Ordinance, the taxpayer shall forfeit this privilege and will be levied the penalties, interests and surcharges on real property and business taxes respectively. SECTION 8. The City Treasurer is hereby authorized to enter into compromise in the settlement of the delinquent real property and business taxes with an interest of two percent (2%) per month with an additional twenty-five percent (25%) penalty subject however, to the approval of the Sanggunian. Such settlement shall be limited only to the period of payment, which shall not be beyond the dates provided for in Section 4 of this Ordinance. SECTION 9. The City Treasurer shall furnish the Sanggunian the List of all establishments or persons availing of this condonation program. SECTION 10. The City Treasurer is mandated to conduct a massive information campaign for the enforcement of this Ordinance. SECTION 10. n Repealing Clause . All Ordinances, resolutions, orders, issuances, rules and regulations or parts thereof which are inconsistent with the provisions hereof are hereby repealed and/or modified accordingly. SECTION 11. Effectivity Clause . This Ordinance shall take effect upon its approval after its posting in the City Hall Bulletin Board for a period of three (3) consecutive weeks and publication in a newspaper of general circulation pursuant to RA 7160, otherwise known as the Local Government Code of 1991. ENACTED without objection after its second and final reading on October 5, 2011 with favorable recommendation from the referee-Committee on Laws and Ordinances. CERTIFIED TRUE AND CORRECT. Mandaue City, Philippines, October 13, 2011. (SGD.) GLENN O. BERCEDE Vice Mayor and Presiding Officer ATTESTED: (SGD.) FRELYN F. MABANAG City SP Secretary APPROVED: November 16, 2011 (SGD.) JONAS C. CORTES City Mayor ATTACHMENT COMMITTEE ON LAWS AND ORDINANCES Committee Report No. 174-2011 TO : The Honorable SP Members THRU : Hon. Glenn O. Bercede Vice Mayor & Presiding Officer SUBJECT : DO 82-2011 Reviewed by this Committee is the Draft Ordinance No. 82-2011 entitled, "AN ORDINANCE CONDONING PENALTIES ON UNPAID REAL PROPERTY TAXES AND PENALTIES, SURCHARGES AND INTEREST ON BUSINESS TAXES FOR 2010 AND PRIOR YEARS IN THE CITY OF MANDAUE." In the proposed ordinance, the condonation shall be limited only to the penalties on delinquent real property taxes on residential, commercial, industrial and other classes of real properties including improvements thereon and the penalties, interests and surcharges on delinquent business taxes for all types of businesses for 2010 and prior years. The condonation for unpaid penalties on delinquent real property taxes may be availed of only until February 15, 2012 while the condonation for unpaid penalties, interests and surcharges on business taxes may be availed of until December 31, 2011. The Local Government Code of 1991 under Section 129 thereof provides that each local government unit shall have the power to create its own sources of revenues and to levy taxes, fees and charges subject to such guidelines and limitations as the Congress may provide. Such taxes, fees and charges shall accrue exclusively to the local governments. Although Section 276 of RA 7160 (The Local Government Code of 1991) provides as a requirement in granting condonation or reduction of real property tax and interest for the succeeding year or years that a recommendation from the Local Disaster Coordinating Council must first be obtained, such is not applicable to the proposed ordinance since the condonation will only cover penalties on delinquent real property taxes as of December 31, 2010 and prior years. Previously, the City of Mandaue thru Ordinance No. 2001/012 granted an amnesty on interests, penalties, surcharges on real property taxes due as of December 31, 2000. The Local Finance Committee, in its 1st Indorsement to the Sangguniang Panlungsod dated 15 August 2011 and signed by its Chairperson, Regal M. Oliva, commented that the act of condoning will enable the City Treasurer's Office to update its records. Likewise, the Local Finance Committee hopes that such act will not encourage delinquencies among taxpayers. The Committee recognizes that there is a need to increase the tax revenues of the City in order to facilitate the delivery of basic services to Mandauehanons. In view of the foregoing, the Committee recommends for the approval of Draft Ordinance No. 82-2011. Respectfully submitted. September 27, 2011. Mandaue City, Philippines. (SGD.) NENITA CENIZA-LAYESE Chairman (SGD.) DIOSDADO P. SUICO Vice Chairman (SGD.) DEMETRIO C. CORTES, JR. Member n Note from the Publisher: Copied verbatim from the official copy. Irregular numerical sequence.