Providing for Financial Relief Through Tax Holiday for a Limited Period to Owners of Real Properties in the City of Parañaque

July 25, 2013 PARAAQUE CITY ORDINANCE NO. 08-13 PROPONENT: Coun. Joan Villafuerte Densing CO-PROPONENTS: Coun. Viktor Eriko M. Sotto Coun. Jason P. Webb Coun. John Ryan G. Yllana Coun. Roselle Nava-Tan Coun. Merlie S. Antipuesto Coun. Raquel Gabriel-Velasco Coun. Florencia N. Amurao Coun. Vincent Kenneth M. Favis Coun. Alma Moreno Coun. Giovanni E. Esplana Coun. Brillante V. Inciong Coun. Jacqueline Bustamante-Mendoza Coun. Ricardo L. Baes, Jr. Coun. Maritess B. De Asis Coun. Rufino M. Allanigue SK Pres. Shannin Mae M. Olivarez AN ORDINANCE PROVIDING FOR FINANCIAL RELIEF THROUGH TAX HOLIDAY FOR A LIMITED PERIOD TO OWNERS OF REAL PROPERTIES IN THE CITY OF PARAAQUE WHEREAS, Republic Act No. 7160 otherwise known as the Local Government Code (LGC) of 1991 Book 2 Chapter 5 Section 192 provides that local government units through ordinances may grant tax exemptions, incentives or reliefs under such terms and conditions as deem necessary; WHEREAS, that due to the prevailing increase of unemployment rate, business slow down and increase of the price of the basic commodities and utilities that resulted from economic recession in 2007, many residents of the City of Paraaque are adversely affected; WHEREAS, the bulk of real properties in City of Paraaque are residential and majority of which has been acquired and paid for by its owners by installment through many years; WHEREAS, because of the aforementioned economic downturn, majority of the households and residents of the City are still undergoing financial burden/difficulties that needs to be alleviated; IaESCH WHEREAS, the City Mayor submitted a Certificate of Urgency to pass a measure on tax holiday; WHEREAS, many properties or additional improvements made thereon have not been declared for assessment purposes and are not included in the Assessment Rolls of the City; WHEREAS, in the absence of any proof of the time and date of the introduction of improvements, the City Treasurer may collect the real property tax due thereon for a period of ten (10) years plus the surcharges and interest thereon. WHEREAS, in order to alleviate these financial burdens, the Sangguniang Panlungsod have crafted a tax holiday for owners of real property by reducing the taxable period and for the undeclared real properties from the period of ten years to five years only and to provide for amnesty on surcharges and interest for delinquent tax payers subject to the provisions of this Ordinance; WHEREFORE, the Sanggunian in session assembled do hereby enact and ordain as follows: SECTION ONE Short Title This ordinance shall be known and cited as Providing for a Tax Holiday for a Limited Period to Owners of Real Properties Undeclared or Delinquent in the City of Paraaque. AHaETS SECTION TWO Scope This ordinance shall apply to all real properties and the improvements thereon that have not been declared for assessment purposes and thus not included in the assessment purposes and thus not included in the assessment rolls and all those real properties whose real property tax thereon has not been paid for the last five years. SECTION THREE Definition of Terms When used in this Ordinance, the term: a. Undeclared Real Properties are those properties including the improvements thereon such as residential structures, any renovations later introduced thereon that resulted in increase in its value and including "machinery" as defined herein which were acquired or introduced after the real property was already for taxation purposes. b. Delinquent Real Properties are those which have been previously declared but the real property tax thereon has remained unpaid. HITEaS c. Notice of Delinquent in Payment of Real Property Tax refers to the notice issued by the City Treasurer that the real property tax imposed thereon has remained unpaid which is posted in the main entrance of the Paraaque City Hall and has been published in a newspaper of General Circulation which notice states that personal property may be destrained or levied and that the delinquent real property will be sold at public auction. d. Acquisition Cost for newly-acquired machinery not yet depreciated and appraised within the year of its purchase, refers to the actual cost of the machinery to its present owner, plus the cost of transportation, handling, and installation at the present site. e. Actual Use refers to the purpose for which the property is principally or predominantly utilized by the person in possession thereof. f. Appraisal is the act or process of determining the value of real property as of a specific date for a specific purpose; g. Assessment is the act or process of determining the value of a property, or proportion thereof subject to tax, including the discovery, listing, classification, and appraisal of properties; h. Commercial land is land developed principally for the object of profit and is not classified as agricultural, industrial, mineral, timber or residential land; IAETDc i. Fair Market Value is the price at which a property may be sold by a seller who is not compelled to sell and bought by a buyer who is not complied to buy; j. Improvement is a valuable addition made to a property or an amelioration in its condition, amounting to more than a mere repair or replacements of parts involving capital expenditures and labor, which is intended to enhance its value, beauty, or utility or to adapt it for new or further purposes; k. Industrial land is land devoted principally to industrial activity as capital investment and is not classified as agricultural, commercial, timber, mineral, or residential land. l. Machinery embraces machines, equipment, mechanical contrivances instrumental, appliances, or apparatus which may or may not be attached, for production, the installations, and appurtenant service facilities, those which are mobile, self-propelled, and those not permanently attached to needs of the particular industry, business, or necessary to its manufacturing, mining, logging, commercial, industrial, or agricultural purposes; m. Remaining Economic Life is the period of time expressed in years from the date of appraisal to the date when the machinery becomes valueless. n. Remaining Value is the value corresponding to the remaining useful life of the machinery; EHTADa o. Replacement or Reproduction Cost is the cost that would be incurred on the basis of current prices, in acquiring an equally desirable substitute property, or the cost of reproducing a new replica of the property on the basis of current prices with the same or closely similar material. And p. Residential Land in land principally devoted to habitation. SECTION FOUR Declaration of Holiday on Back Taxes, Penalties, and Surcharges a. Owners of real properties declared for the first time shall be assessed for the period during which it should be liable but assessment period of ten years prior to its initial assessment is hereby reduced to five years and computed on the basis of the applicable schedule of values presently in force. PROVIDED that the owners or administrators thereof voluntarily declare said properties for assessment purposes from the time this Ordinance is approved and takes effect from August 15, 2013 up to and until November 15, 2013. PROVIDED FURTHER, that the owners or administrators or beneficial users paid the assessed tax due thereon without any penalties and surcharges from August 15, 2013 to November 15, 2013 shall be entitled to the prompt payment discount as provided for the Paraaque Revenue Code. THCSEA b. Owners of Real Properties issued notices of changes of classification from residential to commercial or industrial by the City Assessor during the period from the year 2008 up to the present and who have not paid the tax due thereon are likewise exempted from the payment of penalties and surcharges provided that the tax due thereon is paid on or before August 15-November 15, 2013 including the tax due for the first quarter of the year 2014 on or before owner elects to pay the tax due for the entire calendar year 2014 on or before said August 15-November 15, 2013, the tax payer shall be entitled to the ten percent prompt payment discount for the tax due for said year. c. Owners of declared real property who failed to pay the tax due thereon for the last five years shall likewise be exempt from the payment of surcharges and penalties thereon PROVIDED that the delinquency is paid on or before August 15-November 15, 2013 including the tax due on said property for the first quarter of calendar year 2014. PROVIDED ALSO that if the tax payer pays the real property tax due thereon for the entire year 2014 said payment shall also be entitled to the prompt payment of ten percent. d. Those with pending or protested cases with the courts are not qualified to apply for tax relief under this ordinance. acITSD SECTION FIVE Effect of Failure to Avail for the Tax Holiday a. Owners, administrators, or beneficial users of undeclared real properties who will not declare their real properties the improvements introduced thereon and pay the corresponding assessment for the tax due thereon including the tax holiday of five years and shall be assessed for the whole ten years which shall be payable on or before the end of the quarter following the date of notice of assessment was received by the owner, administrator, or beneficial user or his representative after which date the corresponding penalties and surcharges imposed in the Paraaque Revenue Code shall be applied. b. Owners of properties reclassified from residential to commercial or industrial, and those other owners of delinquent real properties who fail to avail of the tax holiday herein set forth shall be assessed the corresponding penalties and surcharges imposed in the Paraaque Revenue Code. c. The City Treasurer shall forthwith issue Notices of Delinquency for the undeclared real properties discovered and issued notices of declaration by the City Assessors fifteen (15) days after the period of August 15-November 15, 2013 tax holiday for those real properties reclassified for change of use and/or that remains delinquent in the payment of real property taxes. Thereafter, the City Treasurer shall proceed with the mandates of the law and issue the appropriate levy on those properties for sale through public auction. SEAHcT d. Delinquent owners of properties shall not be allowed to avail of future tax holidays and shall be subject to the full extent of the law for failure to pay their back taxes. SECTION SIX Treasurer's Responsibility The Treasurer shall submit a report of the success of the tax holiday/amnesty to the City Council comparing it to the collection of past tax holiday/amnesty. The Treasurer through the City Council, discourages any new forms of tax holidays or tax amnesties in the future. SECTION SEVEN Appropriation The City Mayor shall organize a massive public information drive to inform the owners of real properties in the City of Paraaque which shall not be limited to printed media but may include Television, Radio announcements and social media. Barangays shall schedule Barangay assemblies to disseminate the benefits of this Ordinance in order to carry out this public information drive. The City Mayor, HON. EDWIN L. OLIVAREZ, is hereby authorized to an allocation of One Million Pesos (Php1,000,000.00) which shall be taken from the General Fund for the use of information dissemination. SEACTH SECTION EIGHT Effectivity This ordinance shall take effect upon approval. ENACTED this 25th day of July, 2013 at the City of Paraaque. CERTIFIED TRUE AND CORRECT: (SGD.) ATTY. LINO C. SANDIL Council Secretary SPONSORED BY: (SGD.) JOAN VILLAFUERTE-DENSING City Councilor CO-SPONSORED BY: (SGD.) VIKTOR ERIKO M. SOTTO City Councilor (SGD.) JASON P. WEBB City Councilor (SGD.) JOHN RYAN G. YLLANA City Councilor (SGD.) ROSELLE NAVA-TAN City Councilor (SGD.) MERLIE S. ANTIPUESTO City Councilor (SGD.) RAQUEL GABRIEL-VELASCO City Councilor (SGD.) FLORENCIA N. AMURAO City Councilor (SGD.) SHANNIN MAE M. OLIVAREZ SK President (SGD.) VINCENT KENNETH M. FAVIS City Councilor ALMA MORENO City Councilor (SGD.) GIOVANNI E. ESPLANA City Councilor (SGD.) BILLANTE V. INCIONG City Councilor (SGD.) JACQUELINE BUSTAMANTE-MENDOZA City Councilor (SGD.) RICARDO L. BAES, JR. City Councilor (SGD.) MARITESS B. DE ASIS City Councilor (SGD.) RUFINO M. ALLANIGUE City Councilor CONCURRED BY: Vacation Leave TEODORO C. VIRATA, JR. Liga President ATTESTED BY: (SGD.) JOSE ENRICO T. GOLEZ City Vice Mayor/Presiding Officer APPROVED BY: (SGD.) EDWIN L. OLIVAREZ City Mayor