In a bid to collect P16 billion in unpaid realty taxes, the Manila City government has issued an ultimatum to 89,000 property owners, giving them until June to settle their dues.
Should they fail to pay up, their land would be seized and put up for auction, according to a statement from city hall on Wednesday.
The city government has been sending notices to each of the 89,000 delinquent property owners since January after Mayor Joseph Estrada signed Ordinance 8516. It cancelled the 40 percent increase in real property tax that was supposed to take effect earlier this year.
The hike was supposed to be “the continuation of the 60 percent increase that had been collected starting Jan. 1, 2014 but Estrada said it was no longer necessary because of the improved financial status of the city government,” the statement said.
From October 2015 to June 2016, the city government offered amnesty to delinquent realty taxpayers, resulting in the collection of P1 billion.
City treasurer Rizal del Rosario acknowledged that while a 100 percent collection was impossible, P1.5 billion “would be good enough.”
Del Rosario said two more written notices would be sent out to the 89,000 property owners in addition to the publication of notices in major newspapers.
“As of now we’re still in the process of complying with these prerequisites. Once we have done all these and those delinquents have not paid up yet, we can issue the Warrant of Levy,” he added.
After the warrant of levy, the properties could be auctioned off. Once sold, their owners would have a year to redeem them “by paying the bid price plus two percent interest per month and the expenses incurred by the Office of the City Treasurer in conducting the auction.”
“Now if they can settle it before June, they can avoid these penalties,” Del Rosario said.
He added that the public auction would be the first comprehensive one involving delinquent properties since 2013.
“So I’m asking them to pay up. If their lot is auctioned off, they would be in a pitiful situation and they might even blame the city,” he said, referring to the property owners.