CEBU, Philippines – Mandaue City is set to auction next year at least 14,000 private properties whose owners have been delinquent in paying taxes, which may potentially include the slaughterhouse of Cebu City.
Mandaue Treasurer Regal Oliva told reporters they should be able to finalize the list of delinquent tax payers by July next year. Those that will be auctioned are properties that have been foreclosed and those whose owners have been sent the third and final demand letters of payment.
Mandaue sent the final demand letter to Cebu City in August this year.
“Padung gyud na. Wa man mobayad si Mayor Mike (Rama). We talked already, in fairness to (City treasuer) Diwa (Cuevas), I told them…to get a permit. I’m sure they can pay,” Oliva said.
Mandaue City’s collectibles from Cebu City have reached P2 million, which does not include the two percent monthly interest. The business tax is also excluded from the computation.
“I told them to pay and sue us in court just in case and bring us to court and let the court decide if it’s taxable or not,” Oliva said.
Being a public entity, Cebu City should have no tax obligation to Mandaue, which has jurisdiction over the slaughterhouse’s location, but Oliva explained that since the building is an economic enterprise, it can be taxed, as provided by the Revenue Code.
“The ownernship is public pero ang building is economic enterprise,” he said.
However, Oliva foresees that the property will not attract buyers as it sits on a Cebu City-owned lot, hence, it is possible that Mandaue will just acquire it. Still, problems might arise later as the city does not own the lot where the building stands.
“We cannot auction the land (because we don’t own it), but we can auction the building. Moingun ra na ang (Cebu City) government, imo nanang building then the case would be: Mandaue City will buy the building. Pwede ra gihapon di mi pasudlon kay di man amo ang yuta,” he said.
Oliva said it is also possible that the planned auction “may result to legal battle.”
“We are expecting that. We are ready for that,” he said.
Cebu City Treasurer Diwa Cuevas said she is yet to discuss the matter with Oliva and, hopefully, resolve the issue.
“I haven’t heard of that yet. I’ll reserve my comment for now,” she told The Freeman yesterday.
Of the 72,000 real property units, commercial and residential, in Mandaue, at least 14,000 or 20 percent are candidates for auction.
“They have already been sent demand letters, so they are aware,” Oliva said, referring to the properties’ owners.
He said it will be the first time that Mandaue would auction properties. Once it pushes through next year, the city would earn at least P200 million, Oliva said. —/JMO (FREEMAN)