Friday, November 16, 2007

Section 3E.01 Transfer of Real Property

Article E. Tax on Transfer of Real Property Ownership

Section 3E.01 Imposition of Tax – There is herby levied a tax on the sale, donation, barter, or on any other mode of transferring ownership or title of real property at the rate of eighty two and five percent (82.5%) of the one percent (1%) of the total consideration involved in the transfer of the property or of the fair market value in case the monetary consideration involved in the transfer is not substantial, whichever is higher. For purposes of determining the fair market value of lands, the Fair Market Value shall be that which is determined by the City Assessor as provided under the Schedule of Fair Market Values approved by the Sangguniang Panlungsod.

Section 3E.02 Time of Payment – The tax herein imposed shall be paid to the City Treasurer by the buyer, donee, or transferee to the City Treasurer within sixty (60) days from the date of the execution of the deed or from the date of the decedent’s death.

Section 3E.03 Surcharge for Late Payment – Failure to pay the levied tax on time shall be subject o tab surcharge of twenty-five percent (25%) of the original amount of the tax due, such surcharge to be paid at the same time and in the same manner as the tax due.

Section 3E.04 Interest on Unpaid Tax – In addition to the surcharge for late payment, there shall be imposed upon the unpaid amount an interest of two percent (2%) per month form the due date until the tax is fully paid but in no case shall the total interest on the unpaid amount or portion thereof exceed thirty-six (36) months.

Section 3E.05 Administrative Provisions

(a) The Register of Deeds of the city shall, before registering any deed, require the presentation of the evidence of payment of the transfer tax. The City Assessor shall likewise make the same requirement before canceling an old tax declaration and issuing a new one in place thereof.

(b) Notaries Public shall furnish the City Treasurer with a copy of any deed transferring ownership or title to any real property within (30) days from the date of notarization.

(c) No Transfer of Real Property Ownership shall be effected by the City Assessor unless the corresponding Real Property and Transfer Taxes are fully paid.

Section 3E.06 Penalty - Any violation of the provision of this article Shall be punishable by a fine of not less than One Thousand Pesos (PhP1,000.00) but not more than Five Thousand Pesos (PhP5,000.00) or imprisonment of not less than one (1) month buy not more than six (6) months, or both, at the discretion of the Court.

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