Amending the Pasay City Real Property Tax Code

February 17, 1994 REPUBLIC OF THE PHILIPPINES PASAY CITY PASAY ORDINANCE NO. 254-94 AN ORDINANCE AMENDING ORDINANCE NO. 240 S. 1993 OTHERWISE KNOWN AS AN ORDINANCE ADOPTING THE PASAY CITY REAL PROPERTY TAX CODE SPONSORED by: Vice Mayor WENCESLAO B. TRINIDAD Co-SPONSORED by: Councilors ROMULO M. CABRERA, GREG F. ALCERA, BENJAMIN P. REYES, FLORENCIO C. MATEO, ANTONIO C. PROTACIO, ROBERTO L. ALVAREZ, ERNESTINA B. BERNABE, ULDARICO C. ARABIA, GENEROSO F. CUNETA JUSTO C. JUSTO, ARNEL REGINO T. ARCEO, SALVADOR QUIMPO, EDITHA VERGEL DE DIOS, and TEODULO R. LORCA, JR. WHEREAS, Ordinance No. 240, S. 1993 does not provide procedure for repayment of excessive collection of taxes, procedure preparatory to declaration of delinquency, remedies for collection of delinquent properties and distribution and application of proceeds on the tax on idle land and special levy; WHEREAS, there is a need to amend Ordinance No. 240, S. 1993 to incorporate the aforesaid provisions in order to guide the City Officials responsible for collection of taxes and the tax payers, as well, in the proper implementation of the Pasay City Real Property Tax Code; NOW THEREFORE, BE IT ORDAINED, AS IT IS HEREBY ORDAINED BY THE SANGGUNIANG PANLUNGSOD, amending Ordinance No. 240, S. 1993, to read as follows: CHAPTER 1 General Provisions SECTION 1. Scope . This title govern administration. appraisal, assessment, levy, and collection of real property tax in the City of Pasay. SECTION 2. Fundamental Principles . The appraisal, assessment levy, and collection of real property tax shall be guided by the following principles: (a) Real property shall be appraised at its current and fair market value; (b) Real property shall be classified or assessment purposes on the basis of actual use; (c) Real property shall be assessed on the basis of a uniform classification within each local government; (d) The appraisal, assessment, levy, and collection of real property tax shall not be let to any private person; and (e) The appraisal and assessment of real property shall be equitable. SECTION 3. Definition of Terms . (a) "Acquisition Cost" for newly acquired machinery not yet depreciated and appraised within the year or 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; (b) "Actual Use" refers to the purpose for which the property is principally or pre-dominantly utilized by the person in possession thereof; (c) "Ad Valorem Tax" is a levy on real property determine on the basis of a fixed proportion of the value of the property; (d) "Agricultural Land" is land devoted principally to the planting of trees, raising of crops, livestock and poultry dairying, saltmaking, inland fishing and similar aquacultural activities, and other agricultural activities, commercial or industrial land; (e) "Appraisal" is the act or process of determining the value the value of property as of specific date for a specific purpose; (f) "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; (g) "Assessment Level" is the percentage applied to the fair market value to determine the taxable value of the property; (h) "Assessed Value" is the fair market value of the real property multiplied by the assessment level. It is synonymous to taxable value. (i) "Commercial Land" is land devoted principally for the object of profit and is not classified as agricultural, industrial, mineral, timber, or residential land; (j) "Depreciated Value" is the value remaining after it is anticipated that a machinery or equipment may be profitably utilized; (k) "Economic Life" is the estimated period over which it is anticipated that a machinery or equipment may be profitably utilized; (l) "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 compelled to buy; (m) "Improvement" is a valuable addition made to a property or an amelioration in its condition, amounting to more than a mere repair or replacement of parts involving capital expenditures and labor which is intended to enhance its value, beauty or utility or adopt it for new or other purposes; (n) "Industrial Land" is land devoted principally to industrial activity as capital investment and is not classified as agricultural, commercial, timber, mineral, or residential land; (o) "Machinery" embraces machines, equipment, mechanical contrivances, instruments, appliances or apparatus which may not be attached, permanently or temporarily to the real property. It includes the physical facilities for production, the installations and appurtenant service facilities, those which are mobile, self-powered or self-propelled, and those not permanently attached to the real property which are actually, directly and exclusively use to meet the needs of the particular industry, business or activity and which by their very nature and purpose are designed for, or necessary to its manufacturing, mining, logging, commercial, industrial or agricultural purposes; (p) "Reassessment" is the assigning of a new assessed values to property, particularly real estate, as the result of a general, partial or individual reappraisal of the property; (q) "Remaining Economic Life" is the period of time expressed in years from the date of appraisal to the date when the machinery becomes valueless; (r) "Remaining Values" is the value corresponding to the remaining useful life of the machinery; (s) "Replacement or Reproduction Cost" is the cost that would be incurred on the basis of current prices, in acquiring an equally desirable property or the cost of reproducing a new replica of the property on the basis of current prices with the same or closely similar materials ; and (t) "Residential Land" is land principally devoted to habitation. SECTION 4. Administration of Real Property Tax . The city shall be primarily responsible for the proper, efficient and effective administration of the real property tax subject to the rules and regulation issued by the Department of Finance. Accordingly, the Department of Finance and the city government shall exercise the authority to review and examine on a continuous basis property, assessment, and real property tax records to ensure the proper implementation of this rule and determine compliance with existing laws and regulations. SECTION 5. Appraisal of Real Property . All real property whether taxable or exempt, shall be appraised at the current and fair market value prevailing in the city. The Department of Finance, shall promulgate the necessary rules and regulations for the classification, appraisal and assessment of real property pursuant to the provision of the Local Government Code of 1991. SECTION 6. Real Property Identification System . All declarations of real property made under the provisions of this title shall be kept and filed under a uniform classification system to be established by the City Assessor. SECTION 7. Declaration of Real Property by the Owner of Administrator . It shall be the duty of all persons, natural or juridical, owning or administering real property, including the improvements, therein, within the city, or their duly authorized representative, to prepare, or cause to be prepared and file with the City assessor, a sworn statement declaring the true value of their real property, whether previously declared or undeclared, taxable or exempt, which shall be the current and fair market value of the property, as determined by the declarant. Such declaration shall contain a description of the property sufficient in detail to enable to the City Assessor or his deputy to identify the same for assessment purpose. The sworn declaration of real property herein referred to shall be filed with the City Assessor once every (3) three years during the period from January (1st) first to June (30th) thirtieth commencing with the calendar year 1994. Failure by the owner or his duly authorized representative to file the same will be penalized by a fine of P50.00 for the first month, P100.00 for the second month, P200.00 for the third month, P300.00 for the fourth month, P400.00 for the fifth month, P500.00 for the sixth month and so on for a maximum of P1,000.00, the proceeds of which will be added to the funds of the City Assessor's Office. SECTION 8. Duty of Person acquiring Real Property on making Improvement thereon . It shall be the duty of any person, or his authorized representative, acquiring at any time real property in the city, or making any improvements on real property to prepare or cause to be prepared and filed with the City Assessor, a sworn statement declaring the true value of subject property, within sixty (60) days after the acquisition of such property or upon completion or occupancy of the improvement, which ever comes earlier. In case of machinery, the (60) sixty days period for filing the required sworn declaration of property values shall commence on the date of installation thereof as determined by the City Assessor, for this purposes, the City Assessor may secure certification from the City Engineer or other appropriate officials of the city. Failure to comply will result to the same penalties mentioned in Sec. 7 of this title and the same will accrue to the funds of the City Assessor's Office. SECTION 9. Proof of Exemption of Real Property Taxation . Every person by or for whom real property is declared, who shall claim tax exemption for such property under this title shall file with the City Assessor within (30) thirty days from the date of the declaration of real property sufficient documentary evidence in support of such claim including corporate charters, title of ownership, articles of incorporation, by laws, contracts, affidavits, certification and mortgage deeds, contracts, affidavits certification and mortgage deeds and similar documents. SECTION 10. Duty of the Registrar of Deeds to Appraise Assessor of Property Listed in Registry . (a) Within six (6) months from the date of June 30th of every year thereafter, the Registrar of Deeds shall prepare and submit to the City Assessor the abstract of his Registry of Property which shall include brief but sufficient description of real property entered therein, their present owners, and the date of their most recent transfer or alienation accompanied by copies of corresponding deed of sale, donation or partition or other form of alienation registered. (b) The registrar of deeds shall require the presentation of a certificate or clearance issued by the City Treasurer to the effect that all current year and past year basic and additional SEF real property taxes, and the tax on transfer or real property ownership due on the subject, have been paid in full including interest or penalties due hereon. Failure to provide such certification shall be a valid cause for the Registrar of Deeds to refuse the registration of the documents. In the absence of such certification or tax clearance, the registration is null and void. (c) The registrar of Deeds and notaries of public shall furnished the City Assessor with copies of contracts, selling, transferring or otherwise conveying, leasing, or mortgaging real property registered by, or acknowledgment. SECTION 11. Certification of Registration of Machinery to Transmit Copy to Assessor . Any public official or employee who may now or hereafter be required by law or regulation to issue to any person a permit for the construction, additional, repair, or renovation of a building, or permanent improvement on land, or a certificate of registration for any machinery, including machines, mechanical machine contrivances and apparatus attached or fixed on land or to another real property, shall transmit within (30) thirty days of its issuance to the City Assessor. SECTION 12. Duty of Geodetic Engineer to furnish copy of plans to City of Assessor . It shall be the duty of all geodetic engineers, private of public, to furnished free of charge the City Assessor a white or blue print copy of each of all approved original or subdivision plans or maps of surveys executed by them within thirty (30) days from receipt of such plans from the Land Management Bureau, the Land Registration Authority, or the Housing and Land Use Regulatory Board, as the case may be. SECTION 13. Preparing of Schedule of Fair Market Value . (A) Before any general revision of property assessment is made pursuant to the provisions of this Title, there shall be prepared a schedule of fair market values by the City Assessor for the different classes of real property situated in the city for enactment by ordinance of the City Council. The schedule of fair market values shall be published in a newspaper of general circulation or in the absence thereof, shall be posted in the City Hall and in two other conspicuous places within the City. SECTION 14. Classes of Real Property for Assessment Purposes . For purposes of assessment, real properties shall be classified as residential, agricultural, commercial, industrial or special. SECTION 15. Special Classes of Real Property . All lands, buildings, and any improvements thereon actually directly and exclusively used for hospitals, cultural or scientific purposes, those owned and used for hospitals, cultural and scientific purposes, those owned and used by local water districts and government owned and controlled corporation rendering essential public services in the supply and distribution of water and/or generation of electric power shall be classified as special. SECTION 16. Actual Use of Real Property as Basis for Assessment . Real property shall be classified, value and assessed, on the basis of its actual use regardless of where located, Whoever own its, and whoever uses it. SECTION 17. Assessment Levels . The assessment levels to be applied to the fair market value or real property to determine its assessed value shall be fixed by the ordinance at the rates of: (A) ON LANDS CLASS ASSESSMENT LEVEL RESIDENTIAL 20% AGRICULTURAL 40% COMMERCIAL 50% INDUSTRIAL 50% (B) ON BUILDING AND OTHER STRUCTURES (1) RESIDENTIAL FAIR MARKET VALUE OVER NOT OVER ASSESSMENT LEVIES P175,000.00 0% P175,000.00 300,000.00 10% 300,000.00 500,000.00 20% 500,000.00 750,000.00 25% 750,000.00 1,000,000.00 30% 1,000,000.00 2,000,000.00 35% 2,000,000.00 5,000,000.00 40% 5,000,000.00 10,000,000.00 50% 10,000,000.00 60% (2) AGRICULTURAL FAIR MARKET VALUE OVER NOT OVER ASSESSMENTS LEVIES P300,000.00 25% P300,000.00 500,000.00 30% 500,000.00 750,000.00 35% 750,000.00 1,000,000.00 40% 1,000,000.00 2,000,000.00 45% 2,000,000.00 50% (3) COMMERCIAL/INDUSTRIAL FAIR MARKET VALUE OVER NOT OVER ASSESSMENTS LEVIES P300,000.00 30% P300,000.00 500,000.00 35% 500,000.00 750,000.00 40% 750,000.00 1,000,000.00 50% 1,000,000.00 2,000,000.00 60% 2,000,000.00 5,000,000.00 70% 5,000,000.00 10,000,000.00 75% 10,000,000.00 80% (4) TIMBERLAND FAIR MARKET VALUE OVER NOT OVER ASSESSMENTS LEVIES P300,000.00 45% 300,000.00 500,000.00 50% 500,000.00 750,000.00 55% 750,000.00 1,000,000.00 60% 1,000,000.00 2,00,000.00 65% 2,000,000.00 70% (C) ON MACHINERIES CLASS ASSESSMENT LEVEL AGRICULTURAL 40% RESIDENTIAL 50% COMMERCIAL 80% INDUSTRIAL 80% (D) ON CLASSES: The assessment level for all lands, buildings, machineries and other improvements. ACTUAL USE ASSESSMENTS LEVELS Cultural 15% Scientific 15% Hospital 15% Local Water District 10% Government owned or controlled corporations engaged in the supply and distribution of water and/or generation transmission of electric power. 10% SECTION 18. General Revision of Assessment and Property Classification . The City Assessor shall undertake a general revision property assessment within two (2) years after the effectivity of this Code (RA 7160) and every three (3) years thereafter. SECTION 19. Imposition of the Basic Real Property Tax . There is hereby levied an annual ad valorem tax on the assessed value of real property such as land, building, machinery and the improvements affixed or attached to real property located in the City of Pasay at the following rates: CLASSES OF PROPERTY RATES OF LEVY Residential 1.5% Commercial 2 % Industrial 2 % Special 2 % SECTION 20. Additional Levy on Real Property for the Special Education Fund (SEF) . There is hereby levied an annual tax of one percent (1%) on the assessed value of real property which shall be in additional to the basic real property tax. The proceeds thereof shall exclusively accrue to the Special Education Fund (SEF). All real property tax which are not paid on time shall be subjected to a two percent (2%) penalty per month from the date delinquency until such taxes are fully paid. SECTION 21. Valuation of Real Property . In cases where (a) real property is declared and listed for taxation purposes for the first time (b) there is an ongoing general revision of property classification and assessment; (c) a request is made by the person in whose name the property is declared, the City Assessor or his duly authorized deputy shall, in accordance with the provisions of this chapter, make a classification, appraisal, and assessment of the real property listed and described in the declaration irrespective of any previous assessment taxpayer's valuation thereon: PROVIDED, HOWEVER, that the assessment of real property shall not be increased oftener than once every three (3) years except in case of new improvements substantially increasing the value of said property or any change in its actual use. SECTION 22. Date of Effectivity of Assessment or Re-Assessment . All assessment or re-assessment made after the first (1st) day of any year shall take effect on the first (1st) day of January of the succeeding year; PROVIDED, HOWEVER, that the re-assessment of real property due to its partial or total destruction, or to a major change in its actual use, or to any great sudden inflation or deflation of real property values, or to the gross illegality of the assessment when made or any other abnormal cause shall be made within ninety (90) days from the date any such cause or causes occurred, and shall take effect at the beginning of the quarter next following the re-assessment. SECTION 23. Assessment of Property Subject to Back Taxes . Real property declared for the first time shall be assessed for the taxes for the period during which it would have been liable but in no case for more than ten years prior to the date of initial assessment. PROVIDED, HOWEVER, that the such taxes shall be computed on the basis of such applicable schedule of values in force during the corresponding period. If such taxes are paid on or before the end of the quarter following the date the notice of assessment was received the owner or his representative, no interest for delinquency shall be imposed thereon; otherwise, such taxes shall be subject to an interest at the rate of two percent (2%) per month from the date of the receipt of the assessment until such taxes are fully paid. SECTION 24. Appraisal and Assessment of Machinery . (a) the fair market value of a brand new machinery shall be the acquisition cost. In all the other cases, the fair market value shall be determined by dividing the remaining economic life of the machinery by its estimated economic life and multiplied by the replacement or reproduction cost. (b) if the machinery is imported, the acquisition cost includes freight, insurance, bank other charges, brokerage, arrastre, and handling, duties, and taxes plus of inland transportation, handling and installation charges at the present site. The cost in foreign currency of imported machinery shall be converted to peso cost on the basis of foreign currency exchanges rates as fixed by Central bank. SECTION 25. Depreciation Allowance for Machinery . For purpose of assessment, a depreciation allowance shall be made for machinery at a rate cost exceeding five percent (5%) of its original cost or its replacement or reproduction cost, as the case may be, for each year of use. PROVIDED, HOWEVER, that the remaining value for all kinds of machinery shall be fixed at not less than twenty (20%) percent of such original, replacement or reproduction cost for so long as the machinery is useful and in operation. CHAPTER 2 Assessment Appeals SECTION 26. Local Board of Assessment Appeals . Any owner or person having legal interest in the property who is not satisfied with the action of the City Assessor on the assessment of his property may, within (60) days from the appeal to the Board of Assessment Appeals of the city filing a petition under oath in the form prescribed for the purpose, together with copy of the tax declaration and such affidavits or documents submitted in support of the appeal. SECTION 27. Organization, Powers, Duties, and Functions of the Local Board of Assessment Appeals . (a) The Board of Assessment Appeals of the city shall be composed of the Registrar of Deeds, as Chairman, the City Prosecutor, and the City Engineer as member, who shall serve as such in as ex-officio capacity without additional compensation. (b) The Chairman of the Board shall have the power to designate any employee of the City to serve as secretary to the Board also without additional compensation. (c) The Chairman and members of the Board of Assessment Appeals of the City shall assume their respective position without need of further appointment or special designation immediately upon the effectivity of this code. They shall take an oath or affirmation of office in the prescribed form. (d) Before the assumption of the official function or before discharging their duties as chairman and members of the Local Board of Assessment Appeals, they shall take an oath or affirmation of office. SECTION 28. Meeting and Expenses of the Local Board of Assessment Appeals . The Board of Assessment Appeals of the City shall meet once a month and as often as may be necessary for the prompt disposition of appealed cases. No member of the Board shall be entitled to per diems or travelling for his attendance in Board meeting, except when conducting as ocular inspection in connection with a case under appeal. SECTION 29. Action by the Local Board Assessment Appeals . (a) The Board shall decide the appeal within one hundred twenty (120) days from the date of the appeal. The Board, after hearing shall render its decision based on substantial evidence on record as a reasonable mind might accept and adequate to support the conclusion. (b) In exercise of its appellate jurisdiction, the board shall have the power to summon witnesses, administer oaths, conduct ocular inspection, take depositions and issue subpoena and subpoena duces tecum. The proceedings of the Board shall be conducted solely for purpose of ascertaining the facts without necessarily adhering to technical rules applicable in judicial proceeding. (c) The Secretary of the Board shall furnish the owner of the property or the person having legal interest therein and the City Assessor with a copy of the decision of the Board. In case the City Assessor concurs in the revision or the assessment, it shall be his duty to notify the owner of the property or the person having legal interest therein of such fact using the form prescribed for the purpose . The owner of the property or the person having legal interest therein or the City Assessor who is not satisfied with the decision of the Board, may, within thirty (30) days after receipt of the decision of the Board, appeal to the Central Board of Assessment Appeals (CBAA) as herein provided. The decision of the (CBAA) shall be final and executory. SECTION 30. Exemption from Payment of Real Property Tax . The following are exempted from payment of the real property tax. (a) Real Property owned by the Republic of the Philippines or any of its political subdivision except when the beneficial use thereof has been granted for consideration or otherwise, to a taxable person. (b) All charitable institution, churches, personages or convents, appurtenant thereto including mosques, non profit or religious cemeteries and all lands, buildings and its improvements which are actually, directly and exclusively used by local water districts and government owned or controlled corporations engaged in the supply and distributions of water and/or generation and transmission of electric power; (c) All real property owned by duly registered cooperatives as provided under R.A. No. 6938; and; (d) Machinery and equipment exclusively used for pollution control and environmental protection except as provided herein, any exemption from payment of real property herein, any exemption from payment of real property tax previously granted to: or presently enjoyed by, all persons, whether natural or juridical, including all government owned and controlled corporations are hereby withdrawn upon the effectivity of (Republic Act 7160) of this code. (e) All generators and other machineries used to generate power during brown-out or as alternative source where the regular franchise holder cannot provide such services. SECTION 31. Additional Ad Valorem Tax on Idle Lands . There is hereby levied an annual tax on idle lands at the rate or five (5%) percent of the assessed value of the property which shall be in addition to the basic real property tax. SECTION 32. Idle Lands, Coverage . For purposes of real property taxation, idle lands shall include the following : (a) Agricultural lands, more than one (1) hectare area, suitable for cultivation dairying inland, fishery, and other agricultural uses, one half (1/2) of which remain uncultivated or unimproved by the owner of the property of persons having legal interest therein. Agricultural lands planted to permanent or perennial crops with at least fifty (50) trees to a hectare shall not be considered idle lands. Lands actually used for grazing purposes shall likewise not be considered idle lands. (b) Lands, other than agricultural, located in the City more than one thousand (1,000) square meters in area one half 1/2 of which remain unutilized or unimproved by the owner of the property or persons having legal interest therein. Regardless of land area, this section shall likewise apply to residential lot subdivision duly approved by proper authorities, the ownership to which has been transferred to individual owners, who shall be liable for the additional tax: Provided, however, that the individual lots of each subdivision, the ownership of which has not been transferred to the buyer shall be considered as part of the subdivision, and shall be subject to the additional tax payable by subdivision owners or operators. SECTION 33. Idle Lands Exempt from Tax . The City may exempt idle lands from the additional levy by reason of force majeure, civil disturbance, natural calamity or any cause or circumstance which physically or legally prevents the owner of the property or person having legal interest therein from improving, utilizing or cultivating the same. SECTION 34. Listing of Idle Lands by the Assessor . The City Assessor shall make and keep an updated record of all idle lands located in the City. For purposes of collection, the City Assessor shall furnish a copy thereof to the City Treasurer who shall notify, on the basis of such record, the owner of the property or person having interest therein of the imposition of the additional tax. SECTION 35. Special Levy by the Local Government . The local government may impose a special levy on the lands comprised within its territorial jurisdiction specially benefited by public works project or improvements, including the cost of acquiring lands and such other real property in connection therewith; lands Provided, further, that the special levy shall not apply to lands exempt from basic real property tax and the remainder unit concerned for the construction of such project or improvements. SECTION 36. Ordinance Imposing a Special Levy . A tax ordinance imposing a special levy shall described with reasonable accuracy the nature, extent, and location of the public works project or improvements to be undertaken, state the estimated cost thereof. Specify the meters and bounds by monuments and lines and the numbers of annual installments for the payments of the special levy which in no case shall be less than five (5) nor more than ten (10) years . The City Council shall not be obligated in the apportionments and computation of the special levy, to establish uniform percentage of all lands subject to the payment of the tax for the entire city but it may fix different parts or section thereof, depending or whether such land is more or less benefited by the proposed work. SECTION 37. Publication of Proposed Ordinance Imposing a Special Levy . The special levy authorized herein shall be apportioned, computed, and assessed according to the assessed valuation of the lands affected as shown on the books of the City Assessor, or its current value as fixed by the Assessor if the property does not appear of records in his books. Upon the effectivity of the ordinance imposing special levy, the City Assessor shall forthwith proceed to determine the annual amount of special levy assessed against each parcel of land comprised within the area especially benefited and shall send to each land owner a written notice thereof by main, personal service or publication in appropriate cases. SECTION 39. * Taxpayer's Remedies Against Special Levy . Any owner of real property affected by a special levy or any person having legal interest therein may, upon receipt of the written notice of assessment of the special levy, avail of the remedies provided for in Chapter 2, Sec. 26 of this Title. SECTION 40. Accrual of Special Levy . The special levy shall accrue on the first day (1st) of the quarter next following the effectivity of the ordinance imposing such levy. CHAPTER 3 Collection of Real Property Tax SECTION 41. Date of Accrual of Tax . The real property tax for any year shall accrue for the first day of January and from the date it shall constitute lien on the property which shall be superior to any other lien, mortgage, encumbrance of any kind whatsoever, and shall be extinguished only, upon the payment of the delinquent tax. SECTION 42. Collection of Tax . The collection of the real property tax with interest thereon and relate expenses, and the enforcement of the remedies provided for in this Title or any applicable laws shall be the responsibility of the City Treasurer. The City Treasurer may deputize the barangay treasurer to collect all taxes real property located in the barangay provided that the barangay treasurer is properly bonded for the purpose and provided further, that the premium on the bond shall be paid the city government. SECTION 43. City Assessor to furnish City Treasurer with Assessment Roll . The City Assessor shall prepare and submit to the City Treasurer on or before the thirty first (31st) day of December of each year, an assessment roll containing a list of all persons whose real properties have been newly assessed or re-assessed and values of such properties. SECTION 44. Notice of Time or Collection of Tax . The City Treasurer shall on or before the thirty first (31st) day of January of each year, in the case of the basic real property tax and the additional for the Special Education Fund (SEF) or on any date to be prescribed by the City Council in the case any other tax levied under this Title, post the notice of the dates when the tax may be paid without interest at a conspicuous place publicly accessible place at the City Hall, said notice shall likewise be published in a newspaper of general circulation once a week for two (2) consecutive weeks. SECTION 45. Payment of Real Property Taxes in Installments . The owner of the real property or the person having interest therein may pay the basic real property tax and the additional for the Special Education Fund (SEF) due thereon without interest in for (4) equal installments the first (1st) installment to be due and payable on or before the thirty first (31st) of March; the second installment, on or before the thirtieth (30th) of June; the third installment, on or before the thirtieth (30th) September; and last installment on or before the thirty first (31st) of December, except the Special Levy the payment of which shall be governed by Ordinance of the City Council. The dates for the payment of any other tax imposed of this Title without interest shall be prescribed by the City Council. Payments of real property taxes shall be first be applied to prior years delinquencies, interest, and penalties if any, and only after said delinquencies are settled may ax payment be credited for the current period. SECTION 46. Tax Discount for Advance Payment . If the basic real property tax and additional tax occurring to the Special Education Fund (SEF) are paid in advance in accordance with the prescribed schedule of payment as provided under Sec. 45 (The City Council may grant a discount not exceeding twenty (20%) percent of annual tax due). The City Council hereby ordained a discount based on the following schedule: a) 10% for prompt payment (current year) b) 15% for one year (1) advance payment c) 20% for two years (2) advance payment SECTION 47. Payment under Protest . a) No protest shall be entertained unless the taxpayer first pay the tax. There shall be annotated on the tax receipt the words "Paid under Protest". The protest in writing must be filed within thirty (30) days from the payment of the tax to the City Treasurer who shall decide the protest within sixty (60) days from receipt. b) The tax on a portion thereof paid under protest shall be held in trust by the City Treasurer, however, fifty percent (50%) of the tax paid under shall be distributed in accordance with the provision of the code on the distribution of the proceeds. c) In the event that the protest is finally decided in favor of the taxpayer the amount or portion of the tax protested shall be returned to the protestant, or applied as tax credit against his existing or future tax liability. d) In the event that the protest is denied or upon the lapsed of the sixty day period prescribed in subparagraph (a) of this section, the taxpayer may avail of the remedies provided for in Chapter 2 Sec. 26 of this Title. SECTION 48. Repayment of Excessive Collections . When an assessment of basic real property tax, or any other tax levied under this code, is found to be illegal or erroneous and tax accordingly reduced or adjusted, the taxpayer may file a written claim for refund or credit for taxes and interest with the city treasurer within (2) years from the date the taxpayer is entitled to such reduction or adjustment. The City Treasurer shall decide the claim for tax refund or credit within sixty (60) days from receipt thereof. In the case claim for tax refund or credit is denied, the taxpayer may avail of the remedies as provided in Chapter 3, of this Code. SECTION 49. Notice of Delinquency in the Payment of the Real Property Tax . When the real property tax or any other tax imposed under this code become delinquent, the City Treasurer shall immediately cause a notice of the delinquency to the posted at the main entrance of the City Hall and in a publicly accessible and conspicuous place in each barangay of this city. The notice of delinquency shall also be published once a week for two (2) consecutive week, in a newspaper of general circulation in the city. SECTION 50. Interests on Unpaid Real Property Tax . In case of failure to pay the basic real property tax or any tax levied under this Title upon the expiration of the period as provided in Section 50, or when due, as the case may be, shall subject the taxpayer to the payment of interest at the rate of two percent (2%) per month on the unpaid amount or a fraction thereof , until the delinquent tax shall have been fully paid: Provided, however, that in no case shall the total interest on the unpaid tax or portion thereof exceed thirty-six (36) months. SECTION 51. Remedies for the Collection of Real Property Tax . For the collection of the basic real property tax or any other tax levied under this code, the City may avail of remedies by administrative or judicial action. The administrative remedies which are summary in nature are: a) Levy on real property, and b) Sale of real property at public auction. The judicial remedy is availed of in the court of appropriate jurisdiction. These remedies are cumulative, simultaneous and unconditional, that is, any or all of the remedies or combination thereof may be resorted to and the use of one remedy shall not be a bar against the institution of the others. Formal demand for the payment of the delinquent taxes and penalties due is not a pre-requisite to such remedies. The notice of delinquently required under Section 54 of this Code shall be sufficient for the purpose. SECTION 52. Local Government Lien . The basic real property tax and any other levied under this Code constitute a lien on the property subject to tax. superior to all liens, charges or encumbrances in favor of any person, irrespective of the owner or possessor thereof, enforcement by administrative or judicial action, and may only be extinguished upon payment of the tax and the related interests and expenses. SECTION 53. Levy on Real Property . After the expiration of the term required to pay the basic real property subject to such tax may be levied upon through the issuance of a warrant on or before, or simultaneously with the institution of the civil action for the collection of the delinquent tax. Levy on real property shall be made in the manner herein set forth: a) The City Treasurer when issuing a warrant of levy shall prepare a duly authenticated certificate showing the name of the delinquent owner of the property or person having legal interest therein, the description of the property, the amount of the tax due and the interest thereon. The warrant shall operate with the force of legal execution throughout the city b) The warrant shall be mailed to or served upon the delinquent owner of the real property or person having legal interest therein, or in case he is out of the country or cannot be located, to the administrator or occupant of the property. c) Written notice of the levy with the attached warrant shall be mailed to or served upon the assessor and the Registrar of Deeds of the city where the property is located. d) The Assessor and Registrar of Deeds shall annotate the levy on the tax declaration and certificate of title of the property, respectively. e) Levying officer shall submit a written report on the levy to the Sanggunian Panlungsod within ten (10) days after receipt of the warrant by the property owner person having legal interest in the property. SECTION 54. Advertisement and Sale . Within thirty-(30) days after service of the warrant of levy, the city treasurer shall proceed to publicly advertise for sale or auction the property or a usable portion thereof as may the necessary to satisfy the tax delinquent and expenses of sale. The advertisement shall by effected by posting a notice at the main entrance of the city building, and in publicly accessible and conspicuous place in the barangay where the real property is located, and by publication once a week for two (2) weeks in a newspaper of general circulation in the city where the property is located. The advertisement shall specify the amount of the delinquent tax, the interest due thereon and expenses of sale, the date and place of sale, the name of the owner of the real property or person having legal interest therein, and description of the property to be sold. At any time before the date fixed for the sale, and the owner of the real property or person having legal interest therein may stay the proceedings by paying the delinquent tax, the interest due thereon and the expenses of sale. The sale shall be held either at the main entrance of the provincial, city or municipal building, or on the property to be sold, or at any other place as specified in the notice of the sale. Within thirty (30) days after the sale, the city treasurer or his deputy shall make a report of the sale to the sanggunian panlungsod, and which shall form part of his record. The City Treasurer shall likewise prepare and deliver to the purchaser a certificate of sale which shall contain the name of the purchaser, a description of the property sold, the amount of the delinquent tax, the interest due thereon, the expenses of the sale and a brief description of the proceedings: Provided, however, That proceeds of the sale in excess of the delinquent tax, the interest due thereon, and the expenses of sale shall be remitted to the owner of the real property or person having legal interest therein. The City Treasurer may, advance an amount sufficient to defray the cost of collection thru the remedies provided for in this Title, including the expenses of advertisement and sale. SECTION 55. Redemption of Property Sold . Within one (1) year from the date of sale, the owner of the delinquent real property or person having legal interest therein, or his representative, shall have the right to redeem the property upon payment to the city treasurer of the amount of the delinquent tax, including the interest due thereon, and the expenses of sale from the date of delinquency to the date of sale, plus interest not more than two percent(2%) per month on the purchase prices from the date of sale to the date of redemption. Such payment shall invalidate the certificate of sale issued to the purchaser and the owner of the delinquent real property or person having legal interest therein shall be entitled to a certificate of redemption which shall be issued by the City Treasurer. From the date shall until the expiration of the period of redemption, the delinquent real property shall remain in the possession of the owner or person having legal interest therein who shall entitled to the income and other fruits thereof. The City Treasurer or his deputy, upon receipt from the purchaser of the certificate of sale, shall forthwith return to the latter the entire amount paid by him plus interest of not more than two percent (2%) per month. Thereafter, the property shall be free from the lien of such delinquent tax, interest due thereon and expenses of sale. SECTION 56. Final Deed to Purchaser . In case the owner or person having legal interest therein fails to redeem the delinquent property as provided herein, the city treasurer shall execute a deed conveying to the purchaser said property, free from lien of the delinquent tax, interest due thereon and expenses of sale. The deed shall briefly state the proceedings upon which the validity of the sale rests. SECTION 57. Purchase of Property by the City Government for want of Bidder . In case there is no bidder for the property advertised for sale as provided herein, or if the highest bid is for an amount insufficient to pay the real property a tax and the related interest and costs of the sale purchase the property in behalf of the city to satisfy the claim and within two (2) days thereafter shall make a report of his proceedings which shall be reflected upon the records of his office. It shall be the duty of the Registrar of Deeds concerned, upon registration with his office of any declaration of forfeiture to transfer the title of the forfeited property to this city without the necessary of an order from a competent court. Within one (1) year from the date of such forfeiture, the taxpayer or any of this representatives, may redeem the property by paying to the city treasurer the full amount of the real property tax and the related interest and the cost of sale. If the property is not redeemed as provided herein, the ownership thereof shall be fully vested on the Pasay City Government. SECTION 58. Resale of Real Estate Taken for Taxes, Fees, or Charges . The sangguniang panlungsod may, by duly approved ordinance, and upon notice of not less than twenty (20) days, sell and dispose of the real property acquired under the preceding Article at public auction. The proceeds of the sale shall accrue to the general fund of the city. SECTION 59. Further Distraint of Levy . Levy may be repeated if necessary on the same property subject to tax until the full amount due, including all expenses, is collected. SECTION 60. Collection of Real Property Tax through the Courts . The delinquent basic real property tax or any other tax levied under this code shall constitute indebtedness of the taxpayer to the city, hence, is collection of such indebtedness can be enforced thru civil action in any court of competent jurisdiction. (a) The city treasurer shall furnish the city legal officer a certified statement of delinquency who, within fifteen (15) days, receipt, shall file the civil action in the name of the city in the proper court of competent jurisdiction. The amount sought to be recovered exclusive of interest and cost. Thus, where the delinquent tax due does not exceed Ten Thousand Pesos (P10,000.00), the competent court is the city trial court, and where the amount due is in excess of Ten Thousand Pesos (10,000.00), the proper court is the regional trial court. (b) Where cognizable in an inferior court, the action must be filed in the city where the delinquent property is located. Where the regional trial court has jurisdiction, the plaintiff city shall file the complaint in the city where the property is situated. (c) In both cases , where the claim is either cognizable by an inferior court or by the regional trial court, the city treasurer shall furnish the city legal officer concerned the exact address of the defendant where he may be served with summons. SECTION 61. Action Assailing Validity of Tax Sale . No court shall entertain any action assailing the validity of any sale at public auction of real property or rights therein under this code until the taxpayer shall deposited with the court the amount for which the real property was sold, together with interest of two percent (2%) per month from the date of sale to the time of the institution of the action. The amount so deposited shall be paid to the purchaser at the auction sale if the deed is declared invalid but it shall be returned to the depositor if the action fails. Neither shall any court declare a sale at public auction invalid by reason of irregularities or informalities in the proceedings unless the substantive rights of the delinquent owner of the real property or the person having legal interest therein have been impaired. SECTION 62. Payment of Delinquent Taxes on Property Subject or Controversy . In any action involving the ownership or possession of, or succession to, real property, the court may, motu propio or upon representation of the city treasurer or their respective deputies, award such ownership, possession, or succession to any party to the action upon payment to the court of the taxes with interest due on the property and all other costs that may have accrued, subject to the final outcome of the action. SECTION 63. Treasurer to Certify Delinquences Remaining Uncollected . The city treasurer or his deputy shall prepared a certified list of all real property tax delinquencies which remain uncollected or unpaid for at least one (1) year in his jurisdiction, and a statement of the reason or reasons for such non-collection or non-payment and shall submit the same to the sanggunian panlungsod on or before the thirty-first (31st) of December of the year immediately succeeding the year which the delinquencies were incurred, with a request for assistance in the enforcement of the remedies for collection provided herein. SECTION 64. Periods within which to Collect Real Property Taxes . The basic real property tax and any other levied under this code shall be collected within five (5) years from the date they become due. No action for the collection of the tax, whether administrative or judicial, shall be instituted after the expiration of such period. In case of fraud or intent to evade payment of the tax, such action may be instituted for the collection of the same within ten (10) years from the discovery of such fraud or intent to evade payment. The period of prescription within to collect shall be suspended from the time which: a) The city treasurer is legally prevented from collecting the tax; b) The owner of the property or the person having legal interest therein request for reinvestigation and executes a waiver in writing before the expiration of the period within which to collect; and c) The owner of the property or the person having legal therein is out of the country or otherwise cannot be located. SECTION 65. Distribution of Proceeds . The proceeds of the basic real property tax, including interest thereon, and proceeds from the use, lease or disposition, sale or redemption of property acquired at a public auction, and fifty percent (50%) of the tax paid under protest collected by the city treasurer shall be distributed as follows: City Share Seventy percent (70%) shall accrue to the general fund of the city. Barangay Share Thirty percent (30%) shall be distributed among the component barangays of the city where the property is located in the following manner: a) Fifty percent (50%) shall accrue to the barangay where the property is located. b) Fifty percent (50%) shall accrue equally to all component barangay of the city. The share of each shall be released directly to the barangay treasurer on a quarterly basis within five (5) days after the end of each quarter, without need of any further action, and shall not be subject to any lien or holdback for whatever purpose subject to such rules as may be prescribed by the Commission on Audit for this purposes. SECTION 66. Application of Proceeds of the Additional One Percent (1%) SEF Tax . a) The proceeds of the additional one percent (1%) real property tax accruing to SEF shall be automatically released to the city school board. b) Said proceeds shall be allocated as determined and approved by the city School Board concerned only for the following purposes: 1) Operation and maintenance of public schools; 2) Construction and repair of school buildings, facilities and equipment; 3) Educational research; 4) Purchases of books and periodicals; and 5) Sports development. SECTION 67. Proceeds on the Tax on Idle Lands . The collection of additional real property tax on idle lands shall accrue to the general fund of the city. Accordingly, the proceeds of this tax shall be treated in the income account as revenue from taxation. SECTION 68. Proceeds of the Special Levy . The proceeds of the special levy on lands benefited by public works, projects and other improvements shall accrue to the general fund of the city which financed such public works, projects or other improvements. Accordingly, all income derived from this special levy shall be treated in the income account as revenue from taxation. SECTION 69. Repealing Clause . All ordinances, rules and Regulations which are contrary and inconsistent with this Ordinance are hereby repealed, amended, or modified accordingly; SECTION 70. Effectivity . This Code shall take effect after its approval and publication. ENACTED in the City of Pasay, Philippines this 17th day of February in the year of our Lord, nineteen hundred and ninety four. APPROVED: HON. PABLO P. CUNETA HON. WENCESLAO B. TRINIDAD City Mayor Vice-Mayor and Presiding Officer HON. ERNESTINA B. BERNABE _________________ HON. ARNEL REGINO T. ARCEO _________________ HON. GREG P. ALCERA _________________ HON. ROMULO M. CABRERA _________________ HON. JUSTO C. JUSTO _________________ HON. FLORENCIO C. MATEO _________________ HON. BENJAMIN P. REYES _________________ HON. ANTONIO C. PROTACIO _________________ HON. EDITHA B. VERGEL DE DIOS _________________ HON. ROBERTO L. ALVAREZ _________________ HON. ULDARICO C. ARABIA _________________ HON. GENEROSO P. CUNETA _________________ HON. SALVADOR T. QUIMPO _________________ HON. TEODULO R. LORCA JR. _________________ ATTESTED: ANTONIO S. CO ATTY. EDUARDO Z. GATCHALIAN City Administrator City Secretary (O.I.C.)