Daluz seeks public auction for levied properties

CEBU, Philippines - Cebu City Councilor Joey Daluz III wants the city government to sell through public auction the various commercial, industrial and residential lands that were forfeited in favor of the government because of the owners’ failure to pay their taxes.

Daluz noticed that most of the properties levied by the city government are not being utilized.

“We are not doing something on this so might as well give the owners a chance to buy them back at an affordable price. Anyway, we already have the SRP (South Road Properties). If we can collect more by auctioning this, the better,” Daluz said.

He however said that the properties that are suitable for socialized-housing projects of the city should be excluded from the proposed public auction.

Daluz proposed to sell the forfeited properties to its previous owners at a price less than 50-percent of its fair market value.

“I want to make this a policy because this will be revenue generation for the city,” he said.

According to Daluz, the proceeds of the sale will be an income to the city government and additional income is expected because the owners are already expected to pay their real property taxes to avoid their property from being levied again.

Daluz also filed an ordinance earlier seeking to give owners of forfeited properties by Cebu City Government from 2003 to 2009 a second chance to redeem their property. The proposed ordinance is scheduled for final reading this month.

The proposed ordinance would allow owners to redeem their residential properties that were set for auction and acquired by the city between the years 2003 and 2009. These properties were set for auction due to their failure to settle their taxes.

Section 260 of the Local Government Code says that “within 30 days after service of the warrant of levy, the local 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 properties that may be redeemed under the proposed ordinance are all residential properties, lots and building that has an area of 500-square meters or less and in case of building, the fair market value shall not exceed P1 million.

The owners or the heirs must be in actual possession of the lot when they file the notice to redeem.

The owner will be required to pay the amount of delinquency on date of auction, the cost of auction and transfer, the real property tax due until 2012 and the interest and surcharges accruing from date of auction until date of redemption.

Upon the effectivity of the ordinance, if permitted, the owners have one year to file the notice to redeem and pay the price. The City Treasurer’s Office shall also publish the list of qualified properties for second redemption. (FREEMAN)