PAYMENTS on real property and business tax and market rentals are extended after the 19th City Council on Friday, March 20, passed a resolution providing its extension.
The City Council passed a resolution enacting an ordinance extending the deadline of the second quarterly installment for payment of business tax, and first quarterly installment for real property tax and additional levy on real property for the Special Education Fund (SEF) will all be moved to June 30, 2020 due to the coronavirus disease (Covid-19) in the Philippines.
According to the ordinance, which was certified as urgent by the City Mayor’s Office, there is a need to extend the deadline of the following tax payments following the declaration of the state of public health emergency, which resulted to the strict measures implemented on government transactions.
The ordinance states the extension was passed “to provide taxpayers ample time to pay their tax dues without incurring penalties”.
Originally, the second quarterly installment for local business tax is due on April 20 while first quarterly installment of real property tax and additional levy on real property for SEF is on March 31. Rental fees for public markets, Davao City Overland Transport Terminal (DCOTT), Sta. Ana Port, Magsaysay Parks covering the period from March to June 2020, is due on March 20, while rental fees for Pasabulong Center covering the period from March to June 2020 is supposedly due on March 10.
Section 82 of ordinance No. 0291-17, or the 2017 Revenue Code of Davao City, sets that quarterly installment for local business tax shall be paid within the first 20 days of January, April, July, and October of each year.
While section 10 of the Code provides that real property tax and additional levy on real property for the SEF may be paid in four equal installments: the first installment on or before March 31; while the second installment is on or before June 30; third installment is on or before September 30; and the last installment is on or before December 31.
Section 350 of the same Code also provides that monthly rentals for market stalls shall become due and demandable within the first 20 days of the month.
But the extension was made legal, as per Section 167 of the Republic Act 7160, or the Local Government Code, granting authority to the Sangguniang Panlungsod to extend the time for payment of local taxes, fees or charges without surcharges or penalties “for justifiable cause”. However, it is only for a period not exceeding six months.
Prior to the ordinance passage, Councilor Danilo Dayanghirang on Tuesday, March 17, met with the committee of finance, ways and means, and appropriation to discuss its possible extension to decongest the crowded area of payment and to provide economic relief to the people brought about about by Covid-19.