Review of proposal on redemption of property up for auction sought

Majority floor leader Jocelyn Pesquera, chairwoman of the committee on budget and finance, has asked for a review of a proposed resolution to allow owners of a tax delinquent property auctioned to the city government to redeem their property by installment, citing that it is only a declaration of the sentiment or opinion of a lawmaking body.

The committee report of Pesquera, during a council session last Wednesday, agreed that the proposed resolution of councilor Jose "Joey" Daluz III is in harmony with the objective of the legislative measure for the owners of a tax delinquent property to have the chance to redeem their property by installment, provided that complete payment is made within the redemption period.

But Pesquera said that an ordinance is different from a resolution as "an ordinance is a law, while a resolution is a mere declaration of the sentiment or opinion of a lawmaking body on a specific matter."

Pesquera, who is on her third and last term, told the councilor who is still on his first term in office that "ordinance possesses a general and permanent character, while a resolution is temporary in nature."

The council cannot approve on third reading a mere resolution otherwise decided by a majority of all members of the council, she said.

Further, the report pointed out that the proposed resolution will reveal the intention of Daluz to supplement the existing Omnibus Tax Ordinance and even Section 181 of the Local Government Code.

Under the proposed resolution, the owner of the acquired property is now permitted to pay off the redemption amount in installments. Incidentally, Pesquera said the mode of payment is not prescribed by the Local Government Code because Section 181 states that within one year from the date of forfeiture, the taxpayer or any of his representative, may redeem the property by paying to the local treasurer the full amount of the taxes, fees, charges and surcharges or penalties, and the cost of sale.

However, she clearly stated that Section 181 and Article 269 of its Implementing Rules and Regulations are both silent as to the manner in which the redemption amount shall be paid, whether it be on installment basis or one-time payment.

Pesquera also observed that nothing in the proposed resolution indicates that the mode of paying the redemption amount in installments is envisioned to be a temporary measure.

She added that, "the tenor of the proposed legislative measure is of a general and permanent character."

Instead of a mere proposed resolution, the committee recommended to the proponent that an ordinance be instead drafted.

The proposal first cropped up as suggested by city treasurer Tessie Camarillo to allow and to institutionalize the payment scheme in installment basis, provided that complete payment is made within the redemption period.

Under the terms and condition set forth by the ordinance, the owner of the auctioned property shall be allowed to redeem his property through installment payments within the redemption period without interest. The payments shall be considered as deposits, and shall be placed in a trust fund specially created for the purpose. - Garry B. Lao