Market Value Re-Assessment of Properties under Expropriation Ordinance

November 11, 2019 Excerpts from the Minutes of the 17th Regular Session of the 8th City Council of Valenzuela held on November 11, 2019 at 3:30 P.M. at the City Council's Session Hall, 3rd Floor, Legislative Building, Valenzuela City Hall, Karuhatan, Valenzuela City, Metropolitan Manila. VALENZUELA CITY ORDINANCE NO. 620-19 AN ORDINANCE MANDATING THE CITY ASSESSOR'S OFFICE TO RE-ASSESS THE MARKET VALUE OF PROPERTIES SUBJECT OF EXPROPRIATION PROCEEDINGS BASED ON THE JUDICIALLY DETERMINED FAIR MARKET VALUATION OF THE COURT AS STATED IN ITS FINAL AND EXECUTORY DECISION AND MANDATING THE CITY TREASURER TO RE-COMPUTE REAL PROPERTY TAX AND IMPOSE PENALTIES, INTEREST AND BACK TAXES, IF ANY, BASED ON THE RE-ASSESSED VALUE AS DETERMINED BY THE CITY ASSESSOR'S OFFICE Authored by: Coun. Rovin Andrew M. Feliciano Co-Authored by: Vice Mayor Lorena Natividad-Borja, Coun. Ricardo Ricarr C. Enriquez, Coun. Ramon L. Encarnacion, Coun. Jennifer Perez Pingree, Coun. Joseph William D. Lee, Coun. Walter Magnum D. Dela Cruz, Coun. Crissha M. Pineda, Coun. Kimberly Ann Galang-Tiangco, Coun. Kristian Rome T. Sy, Coun. Nia Shiela B. Lopez, Coun. Louie P. Nolasco, Coun. Chiqui Marie N. Carreon, Coun. Bienvenido S. Bartolome, Jr. and Coun. Exequiel D. Serrano WHEREAS , Section 19 of the Local Government Code states that " A local government unit may, through its chief executive and acting pursuant to an ordinance, exercise the power of eminent domain for public use, or purpose or welfare for the benefit of the poor and the landless, upon payment of just compensation, pursuant to the provisions of the Constitution and pertinent laws: Provided, however, That the power of eminent domain may not be exercised unless a valid and definite offer has been previously made to the owner, and such offer was not accepted: Provided, further, That the local government unit may immediately take possession of the property upon the filing of the expropriation proceedings and upon making a deposit with the proper court of at least fifteen percent (15%) of the fair market value of the property based on the current tax declaration of the property to be expropriated: Provided, finally, That, the amount to be paid for the expropriated property shall be determined by the proper court, based on the fair market value at the time of the taking of the property ."; HTcADC WHEREAS , pursuant to Section 19 of the Local Government Code, the City Government of Valenzuela initiated and filed various expropriation cases to acquire properties within Valenzuela City for the construction of buildings and public infrastructures for the benefit of its local citizens wherein the offer to buy is based on the fair market value indicated in the current tax declarations of the properties to be expropriated; WHEREAS , in compliance with Section 19 of the Local Government Code, the City Government of Valenzuela rendered deposit of fifteen percent (15%) of the fair market value based on the current tax declaration of the properties subject of expropriation; WHEREAS , as part of due process, the court determines the fair market value of properties subject of expropriation for purposes of payment of just compensation for the taking of the subject property, which based on the City's experience, are normally higher than the market value declared in the tax declarations of the property owners; WHEREAS , the fair market value of properties subject of expropriation are determined during stage two of the expropriation proceedings pertaining to payment of just compensation based on various factors including size, shape, location, and elevation of the property, price of adjacent lots, developments, flooding condition and the likes but mostly based on zonal valuation made by the Bureau of Internal Revenue which is usually higher than the fair market value indicated in the tax declarations of the subject properties; WHEREAS , Section 202 of the Local Government Code states that " It shall be the duty of all persons, natural or juridical, owning or administering real property, including the improvements therein, within a city or municipality, or their duly authorized to prepare, or cause to be prepared, and file with the provincial, city or municipal assessor, a sworn statement declaring the true value of their 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 the assessor or his deputy to identify the same for assessment purposes. The sworn declaration of real property herein referred to shall be filed with the assessor concerned once every three (3) years during the period from January first (1st) to June thirtieth (30th) commencing with the calendar year 1992 ."; WHEREAS , Sanggunian Panlungsod ng Valenzuela enacted Ordinance No. 78 Series of 1993, as amended, entitled " An Ordinance Governing the Imposition and administration of Real Property Taxation in the Municipality of Valenzuela " covering the administration, appraisal, assessment, levy and collection of real property taxes and Revenue Ordinance No. 93-013 Series of 1992 as amended by Ordinance No. 169 Series of 2014 setting the Schedule of Fair Market Value of real properties in Valenzuela City; WHEREAS , most property owners subject of expropriation do not file their sworn declaration once every three years contrary to the requirements of the provisions mentioned above; WHEREAS , the determination of the fair market value of properties subject to expropriation by courts is based on pieces of evidence presented by both parties during trial. The court's determination of fair market value represents a more accurate valuation of fair market value of properties subject of expropriation proceedings taking into account the evidentiary nature of trial proceedings in expropriation cases; WHEREAS , final orders and decisions by courts in expropriation cases determining the fair market value of subject properties is binding to the City Government of Valenzuela for purposes of payment of just compensation for the taking of the subject properties and also binding for other legal intent and purposes including re-assessment of its market value in relation to imposition of real property taxes, interest and penalties and back taxes; and aScITE WHEREAS , Section 255 of the Local Government Code states that " In case of failure to pay the basic real property tax or any other tax levied under this Title upon the expiration of the period as provided in Section 250, 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 hereof exceed thirty-six (36) months ."; and WHEREAS , in view of the court's determination of fair market value and failure of the property owners to re-declare the property market valuation of their property, there is a need to re-assess the market value in the tax declarations of properties subject of expropriation in view of the final orders and decisions of trial courts that obtained finality for purposes of imposition of real property taxes as well as interests and penalties to reflect the true valuation of the said properties. NOW, THEREFORE , be it ORDAINED as it is hereby ORDAINED by the Sangguniang Panlungsod ng Valenzuela in session duly assembled: SECTION 1. Title . This Ordinance shall be known as " Market Value Re-Assessment of Properties under Expropriation Ordinance ." SECTION 2. Coverage . All real properties subject of expropriation cases already filed or to be filed by the City Government of Valenzuela wherein just compensation is not yet paid shall be covered by this Ordinance. SECTION 3. Mandate of City Assessor's Office . The City Assessor's Office is hereby mandated to re-assess the market value of real properties subject of expropriation proceedings based on the judicially determined fair market valuation of the court as stated in its final and executory decisions or orders with respect to payment of just compensation and/or zonal valuation made by the Bureau of Internal Revenue. SECTION 4. Mandate of City Treasurer . The City Treasurer is hereby mandated to re-compute the real property tax abilities of the subject property owners and impose interests at the rate of 2% per month but not exceeding thirty six (36) months based on the re-assessed value as determined by the City Assessor's Office. SECTION 5. Re-Assessment Period and Market Valuation . For purposes of this Ordinance, the re-assessment, re-computation of real property tax and imputation of interests shall be reckoned from 01 January 1993 or the date of issuance of certificate of title to the last property owner, whichever is later, up to the date of actual taking as reflected on the Certificate of Turnover or equivalent certification by the branch sheriff of the handling court. The re-assessment, re-computation of real property tax and imputation of interests shall be based on the zonal valuations issued by the Bureau of Internal Revenue for the applicable re-assessment periods mentioned in the table below. Provided , the re-assessment, re-computation of real property tax and imputation of interests for the latest re-assessment period as mentioned in the table below where the date of actual taking falls shall be based on the judicially determined fair market valuation of the court as stated in its final and executory decisions or orders, or the applicable zonal valuation made by the Bureau of Internal Revenue, whichever is higher. Re-assessment Period BIR Department Order 01 January 1993 to 27 September 1994 Zonal valuation under D.O. 37-89 28 September 1994 to 17 December 1996 Zonal valuation under D.O. 84-94 18 December 1996 to 15 November 2003 Zonal valuation under D.O. 83-96 16 November 2003 to 03 October 2015 Zonal valuation under D.O. 22-03 04 October 2015 onwards Zonal valuation under D.O. 81-15 The City Assessor and City Treasurer shall take into account the subsequent revisions made by the Bureau of Internal Revenue for purposes of re-assessment and re-computation of real property tax liabilities and interests under this Ordinance. SECTION 6. Re-Assessment Procedure . The City Legal Office shall forward all final and executory decisions and orders, Certificate of Turnover and/or other pleadings and orders related to the expropriation cases filed by the City Government of Valenzuela to the City Assessor's Office and Treasurer's Office at the earliest opportunity. The City Assessor shall cancel the previous Tax Declaration under the name of the property owner, shall issue a new Tax Declaration covering the period and re-assessment mentioned above, and shall notify the last registered property owner in his/her/its last known address within ten (10) days from receipt of papers from the City Legal Office. HEITAD Further, the City Assessor's Office shall forward copies of the new tax declaration and notice of re-assessment to the City Treasurer within the same period. The City Treasurer shall re-compute the real property tax liability and interest based on the said new tax declaration and notice of re-assessment and shall issue a Notice of Deficiency and Statement of Account for Short Collection to the last known address of the last property owner within ten (10) days from receipt thereof. The property owner shall be given thirty (30) days from receipt of said Notice of Deficiency and Statement of Account for Short Collection within which to settle his/her/its obligation to the City. SECTION 7. Effect of Non-Payment . Should the property owner fail or refuse to settle his/her/its obligation within the prescribed period, the City Treasurer is hereby authorized to deduct the real property tax deficiency and interests under this Ordinance from the adjudged just compensation payable to the property owners of expropriated real properties. SECTION 8. Implementing Guidelines . This ordinance is self-executory upon due publication. However, the City Mayor or his representative is authorized to issue additional guidelines and directives to effectively implement the mandate of this ordinance, if found necessary. SECTION 9. Separability Clause . If any part, section or provision of this ordinance is declared unconstitutional or invalid, the part, section or provision hereof which are not affected shall continue to be in full force and effect. SECTION 10. Repealing Clause . All existing ordinances, executive orders and administrative regulations or part or parts thereof which are inconsistent with any of the provision of this Ordinance are hereby repealed or modified accordingly. SECTION 11. Effectivity . Within ten (10) days after its approval, this Ordinance shall take effect immediately after publication in full for three (3) consecutive days in a newspaper of general circulation. ENACTED. NOVEMBER 11, 2019, VALENZUELA CITY, METRO MANILA. (SGD.) HON. ROVIN ANDREW M. FELICIANO Councilor Majority Floor Leader (SGD.) HON. CRISSHA M. PINEDA Councilor Minority Floor Leader (SGD.) HON. KIMBERLY ANN GALANG-TIANGCO Councilor Asst. Majority Floor Leader (SGD.) HON. RICARDO RICARR C. ENRIQUEZ Councilor Asst. Minority Floor Leader (SGD.) HON. RAMON L. ENCARNACION Councilor (SGD.) HON. KRISTIAN ROME T. SY Councilor (SGD.) HON. JENNIFER PEREZ PINGREE Councilor (SGD.) HON. NIA SHIELA B. LOPEZ Councilor (SGD.) HON. JOSEPH WILLIAM D. LEE Councilor (SGD.) HON. LOUIE P. NOLASCO Councilor (SGD.) HON. WALTER MAGNUM D. DELA CRUZ Councilor (SGD.) HON. CHIQUI MARIE N. CARREON Councilor (SGD.) HON. BIENVENIDO S. BARTOLOME, JR. Councilor (President, League of Barangays) (SGD.) HON. EXEQUIEL D.J. SERRANO Councilor (President, Sangguniang Kabataan Federation) ATTESTED: (SGD.) ANTONIO R. ESPIRITU Secretary to the Sanggunian CERTIFIED CORRECT: (SGD.) HON. LORENA NATIVIDAD-BORJA City Vice Mayor Presiding Officer APPROVED: (SGD.) HON. REXLON T. GATCHALIAN City Mayor Date Signed: November 21, 2018