DILG: City can’t withhold barangays share of property tax

CEBU, Philippines - The Cebu City government cannot withhold the share of barangays of real property taxes.

This is the opinion of Department of Interior and Local Government on moves of the executive department requiring barangays to execute a promissory note they will return the P28.6 million incentive they received from the city last year before they can get their share of the real property taxes.

The incentive has been disallowed by the Commission on Audit (COA).

But DILG-7 Director Rene Burdeos said the Local Government Code is clear: the city must release the share of the barangays directly to them within five days after the end of the quarter.

"It is, therefore, obligatory of the city government to remit to the barangays concerned their RPT shares and by the language of the law, such releases need not require any further action. Neither is it subject lien nor shall it be held back for any purpose by a higher level government unit or agency of the national government. Any attempt to delay, withhold or reduce the share of the barangay should be violative of this section," Burdeos said.

It was the City Council who sought for the DILG opinion on the matter.

In a letter, Vice Mayor Edgar Labella himself told DILG he received reports from barangays that the city's accounting office has required barangays to issue the promissory note.

"Therefore, we humbly appeal that the certificate of estimates of income be timely released to the requesting barangay officials and that the same be issued without any condition as such is the mandate given by the Local Government Code. We hope you could assist us on this matter," Labella's letter reads.

City Treasurer's Office acting head Tessie Camarillo said she would have to go over the details of the matter before making a comment.

Section 271 of the Local Government Code says each barangays would get a 30 percent real property tax share.

The real property tax is defined as a property tax on local real estate calculated according to the fair market value of the real estate.

Last year, the city government distributed P45,000 to each of the 80 barangay captains; P27,000 to each of the 560 barangay councilmen; P18,000 to each of the 80 secretaries, and P18,000 to each of the 80 treasurers. (FREEMAN)