Sale of properties based on unpaid taxes pushed

CEBU, Philippines – Daluz, chairman of the Council committee on budget and finance, said he would suggest in this afternoon’s regular session that the auction should be based on the actual value of the property of delinquent taxpayers.

He said he would also suggest that the auction of properties of those who failed to pay their tax obligation for at least 10 years should be prioritized.

City treasurer Renee Empaces suggested that properties that have huge unpaid taxes should be prioritized so the city can collect millions of revenue.

But Daluz rejected such recommendation, explaining that it might be unfair for those whose properties will be subjected to auction for not having paid taxes for just two years.

“Atong unahon pagsubasta kadtong mga property nga napulo ka tuig, o kaha subra pa, nga walay buhis, unya anam-anamon nato kadtong uban nga mas dili pa kaayo dugay nga wala makabayad ug buhis,” Daluz said.

Daluz said his move to change the policy in the sale of properties of delinquent taxpayers was triggered by several complaints that he received, particularly from owners of auctioned properties.

But he also explained that his move is advantageous to both the city and the delinquent taxpayers.

“Kon ang presyo pagbaligya sa mga properties ibasi ra sa buhis nga wala kabayri sa tag-iya, ang capital gains tax nga bayran sa makapalit gamay ra usab kay adto ra man ibasi kon pila’y palit,” Daluz explained.

But Daluz admitted that only few persons may participate in the auction but added that there is no problem if nobody is interested to buy the concerned properties.

The law provides that if nobody wants to buy the auctioned properties of the delinquent taxpayers, the concerned local government units that conducted the auction will automatically become the purchaser, although there is no need to put up the amount.

The owners of the auctioned properties still have the chance to redeem their properties within the one year with two percent interest. If the owners failed to redeem their properties within one year, the ownership will be transferred to the buyer.

Daluz expects that his proposal would be referred to the committee on laws for further study, suggesting that the committee on budget and finance convene to discuss the matter. – Rene U. Borromeo/LPM (THE FREEMAN)