Real Property Tax Amnesty Ordinance of 2010

March 15, 2010 SANTIAGO CITY ORDINANCE NO. 6THCC-129 AN ORDINANCE GRANTING RELIEF ON REAL PROPERTY TAXES AND FOR OTHER PURPOSES WHEREAS, it has been established that the total amount of tax delinquencies on real property tapes as of April 2009 of the city government is around Twenty six million pesos (P26,000,000.00); WHEREAS, this amount represent prior years uncollected realty taxes from property owners that include the Basic tax, Special Education Fund and penalty interest on the unpaid balance; WHEREAS, the city government is having a hard time collecting the said taxes owing to economic difficulties brought about by the financial crisis in 2008, the various floods and typhoons that visited the city in the pass years which inevitably caused recession to the city's economy as well as the financial capacity of its residents; WHEREAS, the City of Santiago is currently experiencing the fury of El Nio phenomenon which causes great damage to the city's agricultural resources resulting to general failure of crops thereby reducing the income of farmers that will in turn decrease consumption expenditures resulting in slower business activities and eventually lower tax collection by the government; WHEREAS, to alleviate the burden of the constituents, the city government deems it necessary to grant tax relief on real properties which will have a multiplier effect to the local economy wherein real property owners with delinquency will have the chance to pay their arrearages without interest penalty thereby incurring savings or increasing their disposable income while on the part of the city government, it is expected to collect around P18 million that will augment its revenues for the delivery of basic services to the community; WHEREAS, section 192 in relation to section 458 (2) (ii) of the Local Government Code of 1991 grants the Sangguniang Panlungsod the power to enact ordinances granting tax exemption incentives or relief under the conditions as it may deem necessary and upon majority vote of all the members of the Sangguniang Panlungsod; WHEREAS, the grant of tax relief on delinquent real property taxes is timely because of the current economic and financial crisis due to the El Nio phenomenon that has placed the city under a state of calamity pursuant to Resolution No. 6thCC-274 approved on February 15, 2010. CAIHTE NOW THEREFORE, be it ordained by the Sangguniang Panlungsod in its regular session duly assembled, that SECTION 1. Title. This ordinance shall be known as "Real Property Tax Amnesty Ordinance of 2010". SECTION 2. Purpose. The purpose of this ordinance is to grant tax relief on real property taxes due to current economic and financial crisis. SECTION 3. Scope and Application. This ordinance shall apply and govern the collection of real property taxes. SECTION 4. Grant of Tax Relief. Section 2A.09 of Ordinance No. 6thCC-27, otherwise known as the Revised Revenue Code of Santiago City imposing interest penalty and surcharges on unpaid real property tax is hereby suspended, consequently. The City of Santiago hereby grants moratorium on the imposition and/or collection of interest, surcharges or penalties on delinquent real property taxes due for the current year as well as the previous years. The grant of tax relief shall be effective and may be availed of until December 31, 2010, subject to the following conditions: A. Taxpayers with unpaid real property tax on delinquency for previous years including the current year 2010, may pay their realty taxes until December 31, 2010 without interest/penalty. If such taxes are paid on/or before December 31, 2010, no interest/penalty for delinquency shall be imposed thereon. Otherwise such taxes shall be subject to interest/penalty. B. The tax relief herein granted shall only be availed of if the total amount of the unpaid basic tax including the special education fund (SEF) is paid in full until December 31, 2010. Otherwise, the taxpayer shall be deemed to have not availed the tax relief granted herein. SECTION 5. Moratorium on Auction of Delinquent Real Property. A moratorium on auction of delinquent real properties is hereby granted. No public auction involving delinquent real properties shall be held within the effectivity of this ordinance up to December 31, 2010. Within the aforesaid period, the taxpayers shall be required to either settle his/her delinquent accounts in full or enter into a Compromise Agreement as provided for in Section 6 hereof. Provided, that real properties which are the subject of pending cases in court for real property tax delinquencies are not covered. SECTION 6. Settlement of Delinquent Real Property Taxes. The real property taxes (Basic and SEF) due for 2010 and prior years may be paid in installments starting from the day this ordinance takes into effect to December 31, 2010 without any interests, penalties and surcharges. The City Treasurer is hereby authorized to enter into a Compromise Agreement with any delinquent taxpayer or his duly authorized representative, on the schedule of installment payments; provided, that at least fifteen percent (15%) of the total delinquency shall be paid on the date of the signing of the Compromise Agreement, thereafter, the balance thereof to be paid in accordance with the agreed schedule, which shall form part of the Compromise Agreement. Should any installment prescribed in the Compromise Agreement remained unpaid on its due date, the total balance of the delinquent real property tax, as well as the entire amount of the interests, penalties and surcharges shall became automatically due and demandable. SECTION 7. Information Dissemination. The City Treasurer as well as the Secretariat to the Sangguniang Panlungsod is hereby directed to undertake the widest dissemination of this tax amnesty and shall exert every effort to collect the realty taxes due the city government. The City Treasurer is further directed to submit a monthly report to the Sangguniang Panlungsod on the progress of real property tax collection. SECTION 8. Separability Clause. If, for any reason any part or provision of this ordinance shall be held unconstitutional or invalid, the other parts of provisions of this ordinance which are not declared as such shall continue in full force and effect. SECTION 9. Effectivity Clause. This ordinance shall take effect ten (10) days after its publication and shall be in force and effect until December 31, 2010. DETACa ENACTED, March 15, 2010. CERTIFIED TRUE AND CORRECT: (SGD.) ALVIN N. ABAYA City Vice Mayor & Presiding Officer ATTESTED: (SGD.) JANET C. FRANCIA Secretary to the Sanggunian APPROVED: (SGD.) AMELITA S. NAVARRO City Mayor This is to certify that the above Ordinance was published in the Valley Journal in its March 23-29, 2010 issue. (SGD.) JANET C. FRANCIA Secretary to the Sanggunian