City asked to defer P609-M property auction-A A +A
Tuesday, September 10, 2013
CEBU City may have an additional P609.7 million if it sells some properties that were forfeited because their owners failed to pay realty taxes.
But Assistant City Treasurer for Operations Tessie Camarillo wants to postpone the sale of forfeited and unredeemed real properties, saying the City needs more time to consolidate records.
According to the inventory report of the City Treasurer’s Office, there are 342 parcels of land, 216 buildings and 31 equipment to be included in the sale through public auction.
These would translate to a total of P609,749,970.
However, the City Assessor’s Office (CAO) and the General Services Office (GSO) have different reports.
According to the CAO, only 18 parcels of land have been given a final bill of sale.
According to GSO, only six were processed for consolidation.
“It was our honest belief that the ordinance in effect will give an extension of the redemption period that will be exercised by the affected property owners,” wrote Camarillo, in asking for the extension.
The ordinance “Authorizing the sale of unredeemed auctioned real estate properties of Cebu City” provides that an auction will be done in September.
The affected properties are those that have been forfeited in favor of the Cebu City Government for want of bidders in 2010 and 2011.
But the City Treasurer’s Office requested that the sale of the forfeited properties with market value of over P600 million be done in December yet.
Its letter has not been agreed on by the council and was referred to the committee on laws.
The GSO has advised the CTO to have the 342 parcels of land verified with the Register of Deeds, so that a final bill of sale will be given to its previous owners. This will give the owners a chance to redeem the properties before these are sold through public bidding.
According to the report, the biggest amount would come from 39 lots that are more than 500 square meters, which have a total market value of P238.6 million.
Fourteen commercial lots have a total market value of P146 million, while 139 residential properties are expected to earn for the City P56 million.
Commercial buildings, 26 of them, have a market value of P41 million while 42 lots smaller than 500 square meters are worth P33 million.
An estimated P23 million is expected to come from 13 residential buildings, eight agricultural lots have a market value of P5 million.
These properties are among those the Cebu City Government forfeited in 2010 and 2011 because their owners failed to pay real property taxes.
One of the owners is Metropolitan Cebu Water District, which has close to P70 million in delinquent tax payments.
MCWD General Manager Armando Paredes has asked the City to reconsider the forfeiture because it will still have the lots in Buhisan and Tisa surveyed. It found some “ambiguity” in the taxable amounts.
Published in the Sun.Star Cebu newspaper on September 10, 2013.