Binay said the extension aims to give real estate owners and administrators ample time to comply with a newly approved city ordinance requiring them to submit sworn statements of the status of their real property, and to avoid a bottleneck in the processing of their payments.
He said the city government has been swamped with statements from owners and administrators of real properties following the approval last month of Ordinance 2001-08.
Earlier, Binay said the city government anticipates this year’s total collection on lessors’ tax to go beyond P180 million mark following the approval of the ordinance mandating owners’ declaration of the status of their properties.
He said the City Treasurer’s Office is targeting that last year’s total lessors’ tax collection of P94,789,890.94 will be doubled this year because real property owners in the city would now have to divulge lease agreements, if any. Ordinance No. 2001-08 mandates that owners and administrators of lands, buildings and houses should submit to the Office of the Mayor a written declaration under oath whether their property is being rented or leased.
In case they are rented, copies of the lease contract should likewise be presented. The ordinance was passed to address reports that most lessors and sub-lessors in Makati have avoided payment of the lessors’ tax through non-disclosure. Owners of the real estate such as apartments, condominiums, houses, rooms and spaces for rent, and other similar places are levied the lessors’ tax, the amount of which is determined by their gross income for the preceding calendar year.
The ordinance imposes a fine of P5,000 for every violation, or 15-days imprisonment to property owners who fail to comply. – Marvin Sy