The city government will auction next month some 362 real properties with accumulated tax delinquencies as it moves to collect around PHP5.6 million in unpaid taxes.
Marloun Gumbao, city treasurer, said in a notice of public auction sale issued by the local government on Friday afternoon the concerned properties have standing realty tax delinquencies of one year and above as of this month.
He said they scheduled the auction sale on August 12 for all tax-delinquent properties, which covered commercial buildings, and agricultural, industrial, commercial and residential lands.
The move is a remedy for the local government to collect the tax delinquencies and interests as provided for in Sections 260 and 263 of Republic Act 7160 or the Local Government Code of 1991, he said.
Local government units are required to issue demand letters and notices to the owners of the concerned real properties before subjecting them to auction.
A final demand letter will be issued to the owner and will be followed by a warrant of levy if no payment or settlement is made.
A warrant of levy means that a delinquent real property has been attached to the name of the city government.
Gumbao noted that the law provides that before the distraint or seizure of the concerned property, payments may still be made that will be inclusive of surcharges, interest, and penalties.
He said real property owners failing to settle the mandatory taxes within the prescribed period would be slapped with a two percent interest per month for the unpaid amount.
If the tax surcharges and penalties will remain unpaid and the payment period eventually expires, the tax delinquent property will be sold in a public auction and the title will be vested to the purchaser.
“(This is) subject, however, to the right of the delinquent owner of the property or any person having legal interest therein to redeem the property within one year from the date of the auction,” Gumbao said.
The city government has been conducting public auction sales of tax delinquent real properties since 2013, with the upcoming activity covering the ninth batch.
Source: Philippines News Agency