Ex-Cebu City Administrator cries foul over real property tax system probe

Local

FORMER Cebu City administrator Atty. Collin Rosell has denounced as “malicious and libelous” the Cebu City Legal Office’s (CLO) ongoing investigation into the alleged override of the city’s real property tax (RPT) system.

He called it a ploy for “public persecution and misinformation.”

“I was never notified or called… I’m even surprised that there is such a thing as conduct of investigation, as you stated,” Rosell said in a statement issued July 18.

“For lack of notice and due process, the investigation and its output is clearly malicious and libelous if not a ploy for public persecution, humiliation, and misinformation,” he added.

Rosell, who was tagged in the CLO’s May 21 investigative report, is among the former city officials accused of involvement in what the legal office described as “systemic fraud harming taxpayers.”

The report flagged an alleged override of the AS400 tax system between 2022 and 2023 that reportedly allowed owner-declared market values to replace city-approved ones, leading to tax spikes of more than 1,000 percent in certain cases.

Rosell, however, stood firm in saying that no irregularity occurred during his term and insisted that any system modifications were lawful and grounded in valuation rules.

“I can assure the public that at any degree, no irregularity in connection therewith ever happened. If something was tweaked, for sure, it was done within the bounds of the law and consistent with the spirit that gives it life,” he said.

He argued that the AS400 system alone could not trigger property tax hikes.

“A mere computer system cannot cause an increase in real property tax due and payment,” he explained. “Valuation is not taxation… If the value of the property increases, the amount of tax liability follows.”

Rosell said property values are anchored on tax declarations signed by the owners and supported by building permits, zoning certifications, or construction costs.

“If an owner valued his studio condo unit at P4 million rather than the P280,000 outdated valuation of the assessor, is the owner at fault?” he said. “A prudent owner would not like his property to be overly undervalued even for tax-saving purposes.”

He also pointed out that there was no tax rate hike during his tenure. On the contrary, he said the city had even lowered rates.

Rosell is now calling for an impartial investigation of the allegations, including a site-by-site inspection of affected properties and a full audit of permits, declarations, and valuation documents.

“Clearly, the said investigation presented not a question of breach of AS400… but an attempt to maliciously malign persons for an illegal act, particularly the imposition of an unauthorized increase in real property tax,” he said.

In response to public concern, the Cebu City Council on July 15 has moved to reassert the legal process required for real property tax adjustments.

On July 15, the council approved a corollary motion filed by Councilor Jose Abellanosa urging the City Assessor’s Office (CAO) to notify all real property owners and clarify that any increase in assessed property values must first go through formal enactment by the Sanggunian and official publication through ordinance.

“To request the City Assessor’s Office to send notices to all real property owners and publish a notice to taxpayers clarifying that increases in assessed values are effective only after sanguinean enactment and official publication of a schedule via ordinance,” Abellanosa said.

The motion seeks to restore public confidence and direct the CAO to release an advisory aligned with the requirements of the Local Government Code.

Meanwhile, Cebu City Mayor Nestor Archival, for his part, has ordered a full review of the override irregularities, which may have stemmed from a 2023 proposal to raise property taxes in line with the city's P100-billion budget plan.

The mayor said it was possible that some offices had adjusted the system in anticipation of an ordinance that never passed—and then failed to roll back the changes.

While he acknowledged that the override appeared to be intentional, given the credentials and technical access required, he stopped short of calling it fraudulent. Instead, he cited potential administrative lapses.

He has tasked the CTO, CAO, Budget Office, Accounting Office, and the Management Information and Computer Services (MICS) to audit the override records and recommend ways to assist affected taxpayers. Some have already paid the increased taxes, while others are withholding payment.

The CLO earlier identified Rosell and former Local Finance Committee head Jerone Castillo as the officials who allegedly introduced the override mechanism during the previous administration. Castillo also signed a 2023 resolution authorizing the system’s configuration upgrades.

The CLO’s 32-page report found that the override function allowed owner-declared market values to bypass the city’s schedule of market values, which should have been enacted via ordinance.

Legal officers said the absence of independent verification and formal approval violated the Local Government Code and deprived taxpayers of due process, especially those unaware of the changes who missed their chance to appeal within the 60-day period.

The CLO has since recommended the nullification of the affected tax declarations, immediate corrective action from the executive, and legislation to formally invalidate the override-based assessments.

“To leave such irregularities hidden and unresolved would undermine the principles of accountability, transparency, and justice that form the foundation of good governance,” the CLO said.(TGP)