An Ordinance to Reconstitute Chapters 2, 3, 4 & 5, Book II of the City Revenue Ordinance No. 96-001 and Amending Section 3A.05 of the Same, to be Integrated in the Revised Revenue Code of 2013

September 29, 2015 SAGAY CITY ORDINANCE NO. 004-15 AN ORDINANCE TO RECONSTITUTE CHAPTERS 2, 3, 4 & 5, BOOK II OF THE CITY REVENUE ORDINANCE NO. 96-001 AND AMENDING SECTION 3A.05 OF THE SAME, TO BE INTEGRATED IN THE REVISED REVENUE CODE OF 2013 WHEREAS ,Book II of the City Revenue Ordinance No. 96-001 had been left out during its revision; WHEREAS , there is a need to reconstitute Chapters 2, 3, 4 & 5, Book II of the City Revenue Ordinance No. 96-001, to be integrated in the 2013 Revised Revenue Code of the City of Sagay, and to amend Section 3A.05 of the same; NOW THEREFORE, BE IT ENACTED, AS IT IS HEREBY ENACTED ,BY THE SANGGUNIANG PANLUNGSOD OF THE CITY OF SAGAY, BY VIRTUE OF THE POWERS VESTED IN IT BY LAW, IN SESSION ASSEMBLED THAT: SECTION 1. This Ordinance shall be known as an Ordinance to reconstitute Chapters 2, 3, 4 & 5, Book II of the City Revenue Ordinance No. 96-001 and amending Section 3A.05 of the same, to be integrated in the Revised Revenue Code of 2013. SECTION 2. Chapters 2, 3, 4 & 5, Book II of the City Revenue Ordinance No. 96-001, to be integrated in the Revised Revenue Code of 2013, is as follows: "BOOK II REAL PROPERTY TAXATION CHAPTER 2 ARTICLE A. IMPOSITION OF REAL PROPERTY TAX SECTION 2A.01. IMPOSITION OF TAX . There is hereby levied an annual "ad valorem" tax on real property such as land, buildings, machinery and other improvement affixed or attached to Real Property located in the City of Sagay, except as hereinafter specifically exempted, at rate of one (1%) of the assessed value of the real property. SECTION 2A.02. An additional one (1%) tax to the basic real property tax is hereby levied and collected on the assessed value of the real property exclusively accruing to the Special Education Fund (SEF) of the City. SECTION 2A.03. EXEMPTIONS FROM 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 subdivisions except when the beneficial use thereof has been granted, for consideration or otherwise, to a taxable person; b) Charitable institutions, churches, personages or convents appurtenant thereto, mosques, nonprofit or religious cemeteries and all lands, buildings, and improvements actually, directly, and exclusively used for religious, charitable or educational purposes; c) All machineries and equipment that are actually, directly and exclusively used by local water districts and government owned or controlled corporations engaged in the supply and distribution of water and/or generation and transmission of electric power. d) All real property owned by duly registered cooperative as provided for under R.A. No. 6938; and e) Machinery and equipment used for pollution control and environmental protection. SECTION 2A.04. Except as provided 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 or controlled corporations are hereby withdrawn upon effectivity of this ordinance. CHAPTER 3 ARTICLE A. COLLECTION OF REAL PROPERTY TAX S ECTION 3A.01. DATE OF ACCRUAL TAX . The real property tax for any year shall accrue on the first day of January and from that date it shall constitute a lien on the property which shall be superior to any other lien, mortgage, or encumbrance of any kind whatsoever, and shall be extinguished only upon the payment of the delinquent tax. SECTION 3A.02. PAYMENT OF REAL PROPERTY TAXES IN INSTALLMENTS . The owner of the real property tax or the person having legal interest therein may pay the basic property tax and the additional tax for Special Education Fund (SEF) due thereon without interest in four (4) equal installments: 1ST INSTALLMENTS due and payable on or before March 31 2ND INSTALLMENTS due and payable on or before June 30 3RD INSTALLMENTS due and payable on or before September 30 LAST INSTALLMENTS due and payable on or before December 31 SECTION 3A.03. PAYMENT OF REAL PROPERTY TAXES . The payments of real property taxes shall first be applied to prior years delinquencies, interest, and penalties, if any, and only after said delinquencies are settled may tax payments be credited for the current period. CAIHTE SECTION 3A.04. COLLECTION TAX . The collection of the real property tax shall be the responsibility of the Treasurer of the City of Sagay. SECTION 3A.05. TAX DISCOUNT FOR ADVANCE PROMPT PAYMENT . If the basic real property tax and the additional tax accruing to the Special Education Fund (SEF) are paid in advance in accordance with the prescribed schedule of payment as provided under Section 3.B of this ordinance, there is granted a discount of ten percent (10%) of the annual tax due. The amendment: SECTION 3A.05. TAX DISCOUNT FOR ADVANCE PROMPT PAYMENT. If the basic real property tax and the additional tax accruing to the Special Education Fund (SEF) are paid in advance in accordance with the prescribed schedule of payment as provided under Section 3A.02 of this Chapter under this ordinance, there is granted a discount of ten percent (10%) of the annual tax due for the current year. However, should the taxpayer pays in full, the taxes due for the ensuing year on or before December 31 of the current year, he/she shall be entitled to a 20% discount. SECTION 3A.06. PAYMENT UNDER PROTEST . No protest shall be entertained unless the taxpayer first pays the tax. There shall be annotated on the tax receipts the words "paid under protest." The protest in writing must be filed within thirty (30) days from payment of the tax to the City Treasurer who shall decide the protest within (60) days from receipt. SECTION 3A.07. REPAYMENT OF EXCESSIVE COLLECTIONS . When an assessment of basic real property tax or any other tax levied under this ordinance, is found to be illegal or erroneous and the 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 two (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 case the claim for tax refund or credit is denied, the taxpayer may avail of the remedies as provided in chapter 3, title II, Book II of R.A. 7160. ARTICLE B. NOTICE OF DELINQUENCY IN THE PAYMENT OF THE REAL PROPERTY TAX SECTION 3B.01. When the real property tax or any other tax imposed under this ordinance becomes delinquent, the City Treasurer shall immediately cause a notice of the delinquency to be posted at the main entrance of the City Hall and in a publicly accessible and conspicuous place in each barangay of the City. The notice of delinquency shall also be published once a week for two (2) consecutive weeks, in a newspaper of general circulation in the province. SECTION 3B.02. Such notice shall specify the date upon which the tax become delinquent and shall state that personal property may be distrained to effect payment. It shall likewise state that anytime before the distraint of personal property, payment of the tax with the surcharges, interest and penalties may be made in accordance with the next following Section, and unless the tax, surcharges and penalties are paid before the expiration the year for which the tax is due except when the notice of assessment or special levy is contested administratively or judicially pursuant to the provision of Chapter 3, Title II, Book II of R.A. 7160, the delinquent property will be sold at public auction, and the title to the property will be vested in the purchaser, subject however, to the right of the delinquent owner of the property or any person having legal interest therein to redeem the property within one (1) year from the date of sale . ARTICLE C. INTEREST ON UNPAID REAL PROPERTY TAX SECTION 3C.01. In case of failure to pay the basic real property tax or any of the other special levies when due, 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. CHAPTER 4 ARTICLE A. DISPOSITION OF PROCEEDS SECTION 4A.01. 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 shall be distributed as follows: a. City Seventy Percent (70%) shall accrue to the General Fund. b. Barangay Thirty Percent (30%) shall accrue to the Barangay, to be distributed according to the provisions of the Local Government Code. SECTION 4A.02. PROCEEDS OF THE ADDITIONAL ONE PERCENT (1%) SEF TAX . The proceeds from the additional one percent (1%) tax on real property accruing to the SEF shall be automatically released to the Local School Boards. The proceeds shall be allocated for the operation and maintenance of public schools, construction and repair of school buildings, facilities and equipment, educational research, purchase books and periodicals and sports development as determined and approved by the Local School Board. SECTION 4A.03. PROCEEDS OF THE TAX ON IDLE LANDS . The proceeds of the additional real property tax on idle lands shall accrue to the general fund of the city. CHAPTER 5 ARTICLE A. REMEDIES FOR THE COLLECTION OF REAL PROPERTY TAX SECTION 5A.01. For the collection of the basic real property tax and any other tax levied under this ordinance, the City Government concerned may avail of the remedies by administrative action thru levy on real property or by judicial action. SECTION 5A.02. LEVY ON REAL PROPERTY . After the expiration of the time required to pay the basic real property tax or any other tax levied under this ordinance, 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. 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 tax due and interest thereon. The warrant shall operate with the force of a legal execution throughout the City. 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. At the same time, written notice of the levy with the attached warrant shall be mailed to or served upon the Assessor and the Register of Deeds of the City or of the Province in the event Registry of Deeds of the City has no yet been constituted, who shall annotate the levy on the tax declaration and certificate of titled of the property, respectively . The levying officer shall submit a report on the levy to the Sangguniang Panlungsod within ten (10) days after receipt of the warrant by the owner of the property or person having legal interest therein. SECTION 5A.03. PENALTY FOR FAILURE TO ISSUE AND EXECUTE WARRANT . Without prejudice to criminal prosecution under the Revised Penal Code and other applicable laws, any local treasurer or his deputy who fails to issue or execute the warrant of levy within one (1) year from the time the tax become delinquent or within thirty (30) days from the date of the issuance thereof, or who is found guilty of abusing the exercise thereof in an administrative or judicial proceeding shall be dismissed from the service. DETACa SECTION 5A.04. ADVERTISEMENT AND SALE . Within (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 be necessary to satisfy the tax delinquency and expenses of sale. The advertisement shall be effected by posting a notice at the main entrance of the City Hall, and in a 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. 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 a description of the property to be sold. At any time before the date fixed for the sale, 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 at the main entrance of the City Hall, or on the property to be sold, at any other place as specified in the notice of sale. Within the thirty (30) days after the sale, the local treasurer or his deputy shall make a report of the sale to the Sangguniang Panlungsod and which shall form part of his records. 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 real property sold, the amount of the delinquent tax, the interest due thereon, the expenses of 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 expense of sale shall be remitted to the owner of the real property or person having legal interest therein. The City Treasurer may, by ordinance duly approved, advance an amount sufficient to defray the costs of collection thru the remedies provide for in this Title, including the expenses of advertisement and sale. SECTION 5A.05. 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 local treasurer 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 of not more than two per cent (2%) per month on the purchase price 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 or his deputy. From the date of sale 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 be 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 5A.06. 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 5A.07. PURCHASE OF PROPERTY BY THE CITY GOVERNMENT FOR WANT OF BIDDER . In case there is no bidder for the real property advertised for sale as provided herein, or if the highest bid is for an amount insufficient to pay the real property tax and the related interest and costs of sale the City Treasurer conducting the sale shall purchase the property in behalf of the City government 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 such declaration of forfeiture to transfer the title of the forfeited property to the City government without the necessity of an order from a competent court. Within one (1) year from the date of such forfeiture, the taxpayer or any of his representatives, may redeem the property by paying to the local treasurer the full amount of the real property tax and the related interest and the costs of sale. If the property is not redeemed as provided herein, the ownership thereof shall be fully vested on the City Government. SECTION 5A.08. RESALE OF REAL ESTATE TAKEN FOR TAXES, FEES, OR CHARGES . Upon notice of not less than twenty (20) days, the City may sell and dispose of the real property acquired under the preceding section at public auction. The proceeds shall accrue to the general fund of the City. SECTION 5A.09. FURTHER DISTRAINT OR LEVY . Levy may be repeated if necessary until the full amount due, including all expenses, is collected. SECTION 5A.10. COLLECTION OF REAL PROPERTY TAX THROUGH THE COURTS . The City may enforce the collection of the basic real property tax or any other tax levied under this Title by civil action in any court of competent jurisdiction. The civil action shall be filed by the City Treasurer within the period prescribed in Section 5.N of this title. SECTION 5A.11. 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 Title until the taxpayer shall have 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. aDSIHc SECTION 5A.12. PAYMENT OF DELINQUENT TAXES ON PROPERTY SUBJECT OF 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 his deputy, award such ownership, possession, or succession to any part 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 5A.13. TREASURER TO CERTIFY DELINQUENCIES REMAINING UNCOLLECTED . The City Treasurer or their deputies shall prepare a certified list of all real property tax delinquencies which remained uncollected or unpaid for at least one (1) year in his jurisdiction, and a statement of the reason or reasons for such noncollection or nonpayment, and shall submit the same to the Sanggunian Panlungsod on or before December thirty first (31st) of the year immediately succeeding the year in which the delinquencies were incurred, with a request for assistance in the enforcement of the remedies for collection provided herein. SECTION 5A.14. PERIODS WITHIN TO COLLECT REAL PROPERTY TAXES . The basic real property tax and any other tax levied under this Title shall be collected within five (5) years for 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 which to collect shall be suspended for the time during which: (a) The local 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 interest therein is out of the country or otherwise cannot be located. SECTION 5A.15. In order to carry out efficiently the conduct of the general revision of real property assessments pursuant to Section 219 of R.A. 7160 otherwise known as the Local Government Code of 1991 and the computation of assessed values on the basis of the fair market values to be determined by the City Assessor of the City of Sagay, the following schedule of fair market values are hereby prescribed as adopted from the schedule prescribed by Tax Ordinance No. 96-001 of the Province of Negros Occidental. SECTION 5A.16. Taxes due on the basis of assessed Value of Real Properties determined in the 1996 general revision shall take effect in the following manner: a) 35% of the increase over the 1996 tax shall be collected in 1997; b) 70% of the increase over the 1996 tax shall be collected in 1998; c) 100% of the increase over the 1996 tax shall be collected in 1999." The assessed value of Real Properties after CY 2000 onwards shall be determined pursuant to City Ordinance No. 2013-003, otherwise known as "An ordinance updating the Schedule of Market Value of Real Properties for the City of Sagay, Province of Negros Occidental and other provisions relative to Real Property Tax Administration." SECTION 3. Effectivity Clause . This ordinance shall take effect upon its approval and compliance with the requirements of R.A. 7160 on posting. APPROVED BY UNANIMOUS VOTE OF ALL THE MEMBERS PRESENT . Enacted by the Sangguniang Panlungsod on its regular session dated September 29, 2015. I HEREBY CERTIFY to the correctness of the foregoing ordinance. FE JURIS S. SOBERANO Secretary to the Sangguniang Panlungsod ATTESTED AND CERTIFIED TO BE ENACTED: NARCISO L. JAVELOSA, JR. City Vice Mayor/Presiding Officer APPROVED: ALFREDO D. MARAON III City Mayor ______________ Date