Councilor wants City Government to sell lots of delinquent taxpayers-A A +A
Sunday, February 3, 2013
REAL property owners in Cebu City whose properties have been forfeited in favor of the City Government because of tax delinquency will be given another chance to redeem what was once theirs.
That is if the City Council passes a proposed ordinance filed by Councilor Jose Daluz III, which seeks to sell forfeited properties of the City in a public auction.
“The forfeited and unredeemed real properties owned by the City have increased the total assets in the financial statement of the City but are lying idle and unproductive, ceasing to generate income for the City. As it is, the essence of the remedy for tax collection by forfeiture becomes meaningless,” said Daluz on why he filed the measure.
“The efficiency of a local government unit is not measured on the assets amassed but on the utilization of resources, directly or indirectly, for the delivery of services,” he added.
The properties that Daluz is proposing to sell are parcels of land that were became the property of the City due to delinquencies in real estate tax payments.
Daluz is proposing that the lots will be sold through an open public bidding.
To participate in the bidding, one has to pay P1,000 as bid fee to the City Treasurer’s Office (CTO).
The City will then set an opening bid price.
For residential and agricultural properties as well as road lots, the proposed opening bid price is equivalent to the sum of the total tax payable plus interest and surcharges, cost incurred in its auction, and 20 percent of the sum of the three items.
For commercial and industrial properties, the opening bid price will be the fair market value appearing on the tax declaration of the property.
All winning bidders, the proposed ordinance states, will deposit the equivalent of 25 percent of the total bid price within 48 hours.
The balance shall be paid upon notification from the CTO that the final bill of sale is ready for issuance.
Aside from this, all awarded bidders are required to pay an advance payment of real property tax for five years.
Daluz’ three-page measure is supposed to be due for approval during the council’s session last week but it was deferred.
While it was already reviewed a year ago, the council wants the committee on laws to further study the proposal because of “substantial” amendments in it.
Published in the Sun.Star Cebu newspaper on February 03, 2013.