City Ordinance 2001-108 is meant to curb the widespread tax evasion being perpetrated by the city’s landowners. According to City Secretary Rogelio Marasigan, a significant number of landowners in Makati lease or rent out their properties without declaring it to the city government.
Efforts by the city government to assess and collect the lessor’s tax usually fail because of the refusal of the owners/administrators to declare the property as leased or rented. As a result, the city government loses millions in uncollected lessor’s taxes.
Under the ordinance, all owners or administrators of lands, houses and buildings located in the city are required to submit an annual declaration under oath whether or not the said properties are being leased or rented. The owner is also required to submit a copy of the contract of lease to the Office of the Mayor as well as to the barangay office where the property is located.
On the part of barangay chairmen, the ordinance requires them to conduct an annual inventory of all the properties declared as for rent or lease.