Mandaue govt starts forfeiture vs delinquent real property taxpayers

The Mandaue City government is set to forfeit real estate properties whose owners failed to settle real estate taxes despite the issuance of Warrants of Levy.

Regal Oliva, city treasurer said that as of yesterday, they have issued 150 Warrants of Levy to owners of land, buildings, machineries and other improvements.

“The Warrant of Levy means the real estate property has been attached to the name of the Mandaue City government,” he explained.

Upon receipt of the warrant, property owners are given 10 days to settle the tax delinquency. If no payment is made, the forfeiture of the property is published and auction is scheduled.

Oliva said that they are targeting to finish the process either by January or February next year.

“The treasurer is empowered to do administrative sanctions when it comes to delinquent tax payers,” Oliva said while pointed out that the delinquent real property tax payers have been sent three demand letters since last year.

The first demand letter to delinquent real estate taxpayers was sent in November 2011 to 2,000 real property owners.

But after sending the last demand letter a month ago Oliva said that some of the delinquent tax payers still did not pay their due taxes prompting them to issue the Warrant of Levy.

Right after the public auction, Oliva said that the owners will be given one year to redeem their properties. When the owners still won’t redeem their properties and pay taxes, the property will be transferred to the winning bidder.

If there will be no bidder, the property will be owned by the city government of Mandaue.

Oliva said, it is important for the local government unit (LGU) to attach the real estate properties with tax delinquencies are they are only given five years to do the legal action. Otherwise, the LGU can no longer go after the tax delinquents.

Oliva said, “Wala mi nagkuwang ug pahibalo nila (referring to delinquent real property tax payers.”

(We have not been remiss in informing them.)

The city treasurer’s office has coordinated with the barangay captains in 27 barangays in the distribution of demand letters.

Asked if the auction would result in loss to the LGU, Oliva said: “As far as real estate tax collection targets are concerned, there is really negative impact. But in terms of losses, the city may gain because of the forfeiture of the properties in favor of the LGU.”

The previous city treasurer Oliva said did not partake the remedy of having an auction.

“It would have been more of an advantage if the city treasurer for the increase of collection.