Due to damage caused by Yolanda: Bogo City offers tax discounts

CEBU, Philippines - The Bogo City government has granted a tax discount to real property owners with prompt payments made on or before March 31, 2014 in consideration of the damages brought by super typhoon Yolanda.

The Bogo City Council passed an ordinance authored by Councilor Rhett Minguez which also extends the period for tax year 2014.

“The Sangguniang Panlungsod deems it fit and proper to grant discounts to owners of real properties with prompt payments to extended period for tax year 2014 in light of the material damage brought about by Super Typhoon Yolanda on November 8, 2013,” read the resolution embodying Ordinance No. 002-2014.

The ordinance covers all real properties within the jurisdiction of the city with tax due for year 2014.

A discount of 20 percent shall be granted to real property owners whose payments are made in full on or before March 31, 2014.

Payments made by real property owners who did not avail of the discount provided shall be offsetted in the tax due of the same property in the year.

The ordinance is in accordance with the provisions of the Local Government Code of 1991.

Section 246 of the Code provides that the real property tax for any year shall accrue on the first day of January and from that date it shall constitute a lien on the property which shall be superior to any other lien, mortgage, or encumbrance of any kind whatsoever, and shall be extinguished only upon the payment of the delinquent tax.

Section 255 also provides that in case of failure to pay the basic real property tax upon the expiration of installment periods, or when due, as the case may be, shall subject the taxpayer to the payment of interest at the rate of two percent per month on the unpaid amount or a fraction thereof, until the delinquent tax shall have been fully paid: Provided, however, That in no case shall the total interest on the unpaid tax or portion thereof exceed thirty-six months.

Further, Section 276 provides that in case of calamity, the city or town council concerned, by ordinance passed prior to the first day of January of any year and upon recommendation of the Local Disaster Coordinating Council, may condone or reduce, wholly or partially, the taxes and interest thereon for the succeeding year or years in the city affected by the calamity. —/ATO (FREEMAN)