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Wednesday, January 19, 2005
City Hall seizes lots, machinery from CPA
NO ONE was interested to bid in an auction last Dec. 29, so the Cebu City Government formally assumed ownership of more than 22 “tax delinquent” parcels of land, machinery and buildings of the Cebu Port Authority (CPA).
These properties, the subject of conflicting positions on whether CPA should pay taxes to the City Government, were “sold” to the City, said Acting City Treasurer Tessie Camarillo.
Paying for real properties advertised for sale without bidders is a technicality required by law to “satisfy” a local government unit’s claim.
Section 263 of the Local Government Code provides that in case there is no bidder, “the local treasurer conducting the sale shall purchase the property in behalf of the local government unit concerned…”
The CPA has one year to redeem its parcels of land from the date of registration with the Register of Deeds, and with the Office of City Assessor for its building and machinery.
Costs of sale
But it has to pay P168.88 million in delinquent taxes and costs of sale, plus interests of two percent per month of the purchase price from the date of sale to the date of redemption.
The code provides that full ownership of the properties will be vested on the local government unit concerned if these are not redeemed after one year.
Camarillo submitted a report to the City Council to establish that the auction “was consummated as scheduled.” The auction of all the port’s properties was made after the notice of sale was published on Dec. 21 and on Dec. 28 in a newspaper in Cebu City.
The City’s collectible from CPA totals P168,864,761.44.
Cebu City Mayor Tomas Osmeña made good his promise to seize the port’s properties so the City can manage these better.
City Hall had been biding for time to auction CPA’s tax delinquent properties. Every time the City Treasurer’s Office attempted to publish a notice of sale, the port officials were able to secure an injunction from the Regional Trial Court.
The CPA insists it is exempted from paying taxes being a mere custodian of National Government-owned properties. (GAC)
(January 19, 2005 issue)
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