Friday, November 16, 2007

Section 2B.48 Levy on Real Property

Section 2B.48 Levy on Real Property - After the expiration of the time required to pay the basic real property tax or any other tax levied under this Chapter, real property subject to such tax may be levied upon through the issuance of a warrant of levy on or before, or simultaneously with, the institution of the civil action for the collection of the delinquent tax. The City Treasurer, when issuing a warrant of levy shall prepare a duly authenticated certificate showing the name of the delinquent owner of the property or person having legal interest therein, the description of the property, the amount of the tax due and the interest thereon. The warrant shall operate with the force of a legal execution throughout the City. The warrant shall be mailed to or served upon the delinquent owner of the real property or person having legal interest therein, or in case he is out of the country or cannot be located, to the administrator or the occupant of the property. At the same time, written notice of the levy with the attached warrant shall be mailed to or served upon the City Assessor and the Register of Deeds of the City, who shall annotate the levy on the Tax Declaration and Certificate of Title of the Property, respectively. The levying officer shall be submit a report of the City Mayor and the Sangguniang Panlungsod on the levy within ten 10 (days) after receipt of the warrant by the owner of the property or person having legal interest therein.

Section 2B.49 Penalty for Failure to Issue and Execute Warrant - Without prejudice to criminal prosecution under the Revised Penal Code and other applicable laws, the City Treasurer or his deputy who fails to issue or execute the warrant of levy within 1 (one) year from time the tax becomes delinquent or within thirty (30) days from the date of the issuance thereof, or who is found guilty of abusing the exercise thereof in an administrative or judicial proceeding shall be dismissed from the service. ejp

Section 2B.50 Advertisement and Sale - Within thirty (30) days after service of the warrant of levy, the City Treasurer shall proceed to publicly advertise for sale or auction the property or a usable portion thereof as may be necessary to satisfy the tax delinquency and expenses of sale. The advertisement shall be affected by posting a notice At the main entrance of the City Hall and in a public accessible and conspicuous place in the barangay where the real property is located, and by publication once a week for two (2) weeks in a newspaper of general circulation in the City. The advertisement shall specify the amount of the delinquent tax, the interest due thereon and expenses of sale, the name of the owner of the real property or person having legal interest therein, and a description of the property to be sold. At any time before the date fixed for the sale, the owner of the real property or person having legal interest therein, may stay the proceedings by paying the delinquent tax, the interest due thereon and the expenses of sale. The sale shall be held either at the main entrance of the City Hall building, or on the property to be sold, or at any other place as specified in the notice of sale.

Within thirty (30) days after the sale, the City Treasurer or his deputy shall make a report thereof to the City Mayor and the Sangguniang Panlungsod, and which shall form part of his records. The City Treasurer shall likewise prepare and deliver to the purchaser a Certificate of Sale, which shall contain the name of the purchaser; a description of the property sold, the amount of the delinquent tax, the interest due thereon, the expenses of sale and a brief description of the proceedings. Provided however, that proceeds of the sale in excess of the delinquent tax, the interest due thereon, and the expenses of sale shall be remitted to the owner of the real property or person having legal interest therein.

The City Treasurer may advance an amount sufficient to defray the cost of collection through the remedies provided for in this Article, including the expenses for advertisement and sale.

Section 2B.51 Redemption of Property Sold - Within one (1) year from the date of sale, the owner of the delinquent real property or person having legal interest thereon, or his representative shall have the right to redeem the property upon payment to the City Treasurer of the amount of the delinquent tax, including the interest due thereon, and the expenses of sale from the date of delinquency to the date of sale, plus interest of two percent (2%) per month on the purchase price from the date of redemption. Such payment shall invalidate the Certificate of Sale issued to the purchaser and to the owner of the delinquent real property or person having legal interest therein shall be entitled to a Certificate of Redemption which shall be issued by the City Treasurer or his deputy.

From the date of sale until the expiration of the period of redemption, the delinquent real property shall remain in the possession of the owner or person having legal interest therein who shall be entitled to the income and other fruits thereof.

The City Treasurer or his deputy upon receipt of the Certificate of Sale, from the purchaser shall forthwith return to the latter the entire amount paid by him plus interest of (2%) per month. Thereafter, the property shall be free from the lien of such delinquent tax, interest due thereon and expenses of sale.

Section 2B.52 Final Deed to Purchaser - In case the owner or person having legal interest therein fails to redeem the delinquent property as provided herein, the City Treasurer shall execute a deed conveying to the purchaser said property free from lien of the delinquent tax, interest due thereon and expenses of sale. The deed shall briefly state the proceedings upon which the validity of the sale rests.

Section 2B.53 Purchase of Property by the City Government for Want of Bidder - In case there is no bidder for the real property advertised for sale as provided herein, or if the highest bid is for an amount insufficient to pay real property tax and the related interest and cost of sale, the City Treasurer conducting the sale shall purchase the property in behalf of the City Government to satisfy the claim and within two (2) days thereafter shall make a report of his proceedings which shall be reflected on the records of his office to the City Mayor and Sangguniang Panlungsod. It shall be the duty of the Register of Deeds upon registration with his issuance of any such declaration of forfeiture to transfer the title of the forfeited property to the City without the necessity of an order from a competent court.

Within one (1) year from the date of such forfeiture, the taxpayer or any of his representatives may redeem the property by paying to the City Treasurer the full amount of the real property tax and the related interest and the cost of sale. If the property is not redeemed as provided herein, the ownership thereof shall be fully vested on the City.

Section 2B.54 Resale of Real Estate Taken for Taxes, Fees or Charges - Sangguniang Panlungsod may, through a separate ordinance and upon notice of not less than twenty (20) days, sell and or dispose of the real property acquired under the preceding section at public auction. The proceeds of the sale shall accrue to the General Fund of the City.

Section 2B.55 Further Distrait or Levy - Levy may be repeated if necessary until the full amount due, including all expenses are collected.

Section 2B.56 Collection of Real Property Tax Through the Court - The City Government may enforce the collection of basic real property tax or any tax levied under this article by civil action in any court of competent jurisdiction. The following civil action shall be filed by the City Treasurer within the period prescribed.

(a) The City Treasurer shall furnish the City Legal Officer a certified statement of delinquency, who, within fifteen (15) days after receipt, shall file the civil action in the name of the City in the proper court of competent jurisdiction.

(b) In both cases, that is, where the claim is either cognizable by an inferior court or by the regional trial court, the City Treasurer shall furnish the City Legal Officer the exact address of the defendant where he may be served with summons.

Section 2B.57 Action Assailing Validity of Tax Sale - No court shall entertain any action assailing the validity of any sale at public auction of real property or rights therein under this Article until the taxpayer shall have deposited with the court the amount for which the real property was sold, together with the interest of two (2%) per month from the date of sale to the time of the institution of the action. The amount so deposited shall be paid to the purchaser at the auction sale if the deed is declared invalid but it shall be returned to the depositor if the action fails.

Section 2B.58 Payment of Delinquent Taxes on Property Subject of Controversy - In any action involving the ownership or possession of, or succession to, real property, the court may motu propio or upon representation of the City Treasurer or his deputy, award such ownership, possession or succession to any party to the action upon payment to the court of the taxes with interest due on the property and all other costs that may have accrued, subject to the final outcome of the action.

Section 2B.59 Treasurer to Certify Delinquencies Remaining Uncollected - The City Treasurer or his deputy shall prepare a certified list of all real property tax delinquencies which remained uncollected or unpaid for at least one (1) year, and a statement of the reason or reasons for such non – collection or non – payment, and shall submit the name to the City Mayor and the Sangguniang Panlungsod on or before the thirty – first (31st ) of December of the year immediately succeeding the year in which the delinquencies were incurred with a request for assistance in the enforcement of the remedies for collection as provided therein.

Section 2B.60 Periods within Which to Collect Real Property Taxes - The basic real property tax and any other tax levied under this Article shall be collected within five (5) years from the date they have become due. No action for the collection of the tax, whether administrative or judicial, shall be instituted after the expiration of such period. In case of fraud, or intent to evade payment of the tax, such action may be instituted for the collection of the same within ten (10) years from the discovery of such fraud or intent to evade payment.

The period of prescription within which to collect shall be suspended for the time during which: (a) the City Treasurer is legally prevented from collecting the tax; (b) the owner of the property or the person having legal interest therein requests for reinvestigation and executes a waiver in writing before the expiration of the period within which to collect; or (c) the owner of the property or the person having legal interest therein is out of the country or otherwise cannot be located.

Section 2B.61 Condonation or Reduction of Real Property Tax and Interest - In case of calamity in the City, the Sangguniang Panlungsod by ordinance passed prior to the first (1st) day of January of any year and upon recommendation of the City Disaster Coordinating Council, may condone or reduce ,wholly or partially, the taxes and interest thereon for the succeeding year or years in the areas affected by the calamity.

Section 2B.62 Condonation or Reduction of Tax by The President of the Philippine - The President of the Philippines may, when public interest so requires, condone or reduce the real property tax and interest for any year in the City.

Section 2B.63 Fees in Court Actions - As provided in Sec. 280 of the Local Government Code, all certificates documents, and papers covering the sale of delinquent property to the City if registered in the Registry of Property, shall be exempt from the documentary stamp tax and registration fees.

Section 2B.64 Fees in Registration of Papers or Documents on Sale of Delinquent Real Property to the City - As provided in Sec. 281 of the Local Government Code, all certificates documents, and papers covering the sale of delinquent property to the City if registered in the Registry of Property, shall be exempt from the documentary stamp tax and registration fees.

Section 2B.65 Sale and Forfeiture Before Effectivity of this Code - Tax delinquencies incurred, and sales and forfeitures of delinquent property affected before the effectively of this Code shall be governed by the provisions of applicable ordinances or laws then in force.

Section 2B.66 Interest on Unpaid Real Property Tax - Failure to pay real property tax or any other tax levied under this article upon the expiration of the periods as provided in Section 2B.11, shall subject the taxpayer to the payment of interest at the rate of two (2%) per month on the unpaid amount or a fraction thereof, until the delinquent tax shall have been fully paid. But in no case shall the total interest on the unpaid tax or portion thereof exceed thirty – six (36) months.

Section 2B.67 Penalties for Omission of Property from Assessment or Tax Rolls - Any officer charged with the duty of assessing a real property who willfully fails to assess or who intentionally omits from the assessment or tax roll any real property which he knows to be taxable, or who willfully or negligently assesses under any real property, or who intentionally violates or fails to perform any duty imposed upon him by law relating to the assessment of taxable real property shall, upon conviction, be punished by imprisonment of not less than one (1) month but not more than six (6) months, or by a fine of not less than One Thousand Pesos (Php1,000.00) but not more than Five Thousand Pesos (Php5,000.00) or both such imprisonment and fine, at the discretion of the court.

The same penalty shall be imposed upon an officer charged with the duty of collecting the tax due on real property who willfully and negligently fails to collect the tax and institute the necessary proceedings for the collection of the same.

Any officer required in this Article to perform acts relating to the administration of real property tax to assist the City Assessor or City Treasurer in such administration, who willfully fails to discharge such duties shall, upon conviction, be punished by imprisonment of not less than one (1) month but not more than six (6) months or by a fine of not less than Five Hundred Pesos (Php500.00) but not more than Five Thousand Pesos (Php5,000.00) or both such imprisonment and fine, at the discretion of the court.

Section 2B.68 Penalties for Delaying Assessment of Real Property and Assessment Appeals - Any government official or employee, national or local, who intentionally and deliberately delays the assessment of real property or the filing of any appeal against its assessment shall, upon conviction, be punished by imprisonment of not less than one (1) month but not more than six (6) months, or by a fine not less than Five Hundred Pesos (Php500.00) but not more than Five Thousand Pesos (Php5, 000.00) but both such imprisonment and fine, at the discretion of the court.

Section 2B.69 Penalties for Failure to Dispose of Delinquent Real Property at Public Auction - The City Treasurer who fails to dispose of delinquent real property at public auction in compliance with the pertinent provisions of this article and any other local officials whose acts hinder the prompt disposition of delinquent real property at public auction shall, upon conviction, be subject to imprisonment of not less than one (1) month but not more six (6) months, or a fine of not less than One Thousand Pesos (Php1,000.00) but not more than Five Thousand Pesos (Php5,000.00) or both such imprisonment and fine, at the discretion of the court.

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