City Treasurer Victor Endriga named the Metropolitan Waterworks and Sewerage System (MWSS) in Balara, the Philippine Heart Center, and Lung Center of the Philippines, both located along East Avenue as among the government corporations that have been remiss in paying their property taxes.
The MWSS alone owes the city government some P240 million in unpaid dues, Endriga said. "Most of them thought they are not required to pay their property taxes because they are government owned," he said.
But Endriga explained that the Department of Finance in several rulings, the courts, as well as the Local Government Code, have already withdrawn such tax exemptions.
The MWSS is now entering into a P120-million compromise agreement with the city government, which itself owes the water company a huge amount incurred after the previous administration’s non-payment of water bills, Endriga said.
The city government is giving all delinquent taxpayers until Jan. 31 to pay their taxes or their properties — classified into land, buildings and machinery — will be auctioned off on Feb. 27.
This is the first auction of properties with unpaid taxes that the city government will hold since 1984, when Adelina Rodriguez was city mayor.
Bids at the auction will start with the amount of the property’s unpaid taxes. Old owners will be given a one year period of redemption.
According to Endriga, an auction is the most effective way to compel delinquents to regularly pay their property taxes, instead of issuing tax amnesties, which only "encourages taxpayers not to pay on time."
Endriga revealed that the city has had low tax collections the past years. "Considering that Quezon City has the biggest land area and tax base, it should be the number local government earner." — Nikko Dizon