Delinquent Cebu City taxpayers get reprieve

Local

CEBU City is extending a two-year amnesty on penalties and surcharges for delinquent real property taxpayers, providing much-needed relief to those burdened by unpaid taxes.

Mayor Raymond Alvin Garcia issued Executive Order (EO) No. 22 to implement the provisions of the Real Property Valuation and Assessment Reform Act (RPVARA), or Republic Act No. 12001, enacted on July 5, 2024.

This initiative grants taxpayers the opportunity to settle their obligations without incurring additional penalties, aiming to boost compliance and enhance revenue collection for the city.

Under the new law, taxpayers with outstanding real property taxes—including those related to the Special Education Fund, Idle Land Tax, and other special levies—are granted amnesty on penalties, surcharges, and interest accrued up until July 5, 2024.

They now have until July 4, 2026, to pay only the principal amount due, without having to worry about additional charges.

“The two years will start from July 5, 2024, until July 4, 2026. So, I am encouraging taxpayers who are delinquent in the payment of real property taxes to come to City Hall and pay their obligations because we are waiving all penalties, surcharges, and all they have to pay is the principal amount,” Garcia said.

He further clarified that the amnesty applies to all delinquent taxpayers, regardless of the year the taxes are due.

“Kung delinquent ka, wala ka kabayad og 2023, this will apply; 2022, this will apply,” Garcia added.

The mayor emphasized that the program is a chance for taxpayers to clear their dues without the burden of accumulated penalties, which in some cases, may exceed the principal amount.

“It’s the same principle that states 1 peso today is better than 10 pesos tomorrow. And tomorrow you’re not even sure if you can collect that amount,” Garcia added.

He also noted that early payments would enable the city to allocate funds toward public services, rather than waiting for years to collect larger, uncertain amounts.

The executive order specifies that the amnesty covers all delinquent accounts prior to July 5, 2024, with exceptions for properties already auctioned to cover tax delinquencies, properties under existing compromise agreements, or those involved in pending court cases.

To avail of the amnesty, taxpayers must submit a written application to the City Treasurer’s Office (CTO), which will calculate the basic real property tax due, excluding any penalties or surcharges.

The full payment of the basic tax must be made to qualify for the amnesty.

Taxpayers who are unable to pay the full amount upfront can opt for an installment plan, as long as the total amount due is settled before the end of the amnesty period.

The mayor highlighted that the new law aims to streamline the property valuation process by transferring authority over property values from local councils to the Bureau of Local Government Finance (BLGF).

"Now, the RPVARA law fixes that ang magbuot karon sa absolute values of real property is not anymore the Sanggunian Panlungsod. It now belongs to the BLGF,” Garcia said.

Garcia expressed hopes that the reforms would encourage more taxpayers to settle their obligations, ultimately increasing the city's revenue.

Higher revenue, he noted, could lead to opportunities for supplemental budgets, which would support city projects.

"I’m hoping with this amnesty, they will be even doing a better job,” Garcia said.

The Public Information Office (CPIO) has been tasked with ensuring widespread dissemination of the amnesty program, including publishing guidelines through local newspapers, the city's website, and other communication channels.

The EO is effective immediately and will remain in effect until the expiration of the two-year amnesty period on July 4, 2026.(MyTVCebu)