City can't use forfeited bldgs on private lots

CEBU, Philippines - The Cebu City government is now facing a problem on how to utilize some buildings and house that were already forfeited in favor of the city for non-payment of taxes because some of these are built on lots still owned by the previous owner.

This is why Councilor Jose Daluz III proposed to his fellow city legislators that the previous owners of the buildings and houses be allowed to redeem their properties even beyond the one-year redemption period.

One of the properties being auctioned by the city and forfeited in favor of the Cebu City government after the lapse of the one-year redemption period is a private residence registered under the name of Jesus Malagar Escario.

The Escario family failed to pay their tax obligations for several years. They also failed to redeem the property during the one-year redemption period. But a few months ago the Escario family said they intend to redeem their ancestral house and they are willing to pay the pending unpaid taxes and fines.

Daluz said he and Cebu City lawyers have the same stand on this matter that it would be practical that the owners of the property be allowed to redeem back the property and to pay the interest and surcharges to the city.

The situation as far as the house subject for redemption is that the land is still owned by Escario and the city cannot fully use the structure nor sell it at a higher price because the house is now dilapidated.

Councilor Sisinio Andales, chairman of the Committee on Laws of the Cebu City Council, reviewed the recommendation of Daluz and supports the view of his fellow city legislator.

“Although the redemption period had already expired, yet for practical purposes the committee is of the opinion to allow the heirs of Escario to redeem their ancestral house,” Andales said.

Because of that case, the city councilors decided to make some improvements to their legal actions against delinquent taxpayers.

Section 260 of Republic Act 7160 allows the local government units to auction the properties of the delinquent taxpayers in order to satisfy their tax obligation to the government.  (FREEMAN)

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