Despite Creation Of New Cities: Tax collections of Capitol stable

 The Provincial Treasurer’s Office yesterday expressed optimism that it will be able to meet its real property tax collection target this year despite conversion of some towns into component cities.

Provincial treasurer Roy Salubre said that based on the January to April collections, they managed to collect P5.3 million in franchise and real property taxes from the Visayan Electric Company and the Cebu Electric Cooperative.

“With in this year, stable ang atong collection,” Salubre said, adding that they “managed to collect previous tax delinquency from the two power companies.”

The two electric cooperatives - Cebeco I and II - have incurred more than P65 million in unpaid real property taxes.

Salubre said Cebeco I owes the Province P55,331,710 while Cebeco II owes P10,506,770. He said the provincial government already auctioned some of Cebeco I’s and II’s properties to recover their unpaid taxes.

These included machinery transformers, electric distribution poles, conductors and devices, among others.

Salubre also said that there is a Supreme Court decision which states that Cebeco I and II are taxable because these are cooperatives.

Further, he explained that Cebeco contested their computation in the Regional Trial Court.

But an initial payment of P2.8 million was facilitated while the other half was deposited in court pending the determination of a final computation.

Last year, the provincial treasurer’s office collected P4.487 million in franchise taxes and P247 million in real property taxes.

In terms of real property, Salubre said that their collection for the first quarter of this year already reached P15.6 million, excluding those municipalities which were converted into component cities. Another P9.785 million was generated from collections at the South Bus Terminal also in the first quarter of this year.

As Carcar, Bogo and Naga were converted into component cities in the province, they are no longer required to share real property taxes with the Capitol.

Based on the 2006 tax records, then Naga town collected P44.76 million in real property taxes – the highest among all municipalities in the province. By law, 35 percent of the amount or over P15 million went to the coffers of the provincial government.

Naga enjoys high revenues because of the presence of several large industries such as cement plants, power generation facilities, and factories in its industrial zone.

Also in 2006, Carcar collected P8.81 million in real estate taxes, while Bogo collected P12.1 million. — Garry B. Lao/MEEV