COA flags Muntinlupa's P2.931-B real property tax delinquency

Real property tax delinquencies in Muntinlupa City reaching P2.931 billion have alarmed the Commission on Audit (COA), prompting it to call for the immediate implementation of remedial measures to address the problem.
 
While COA cited the city government for realizing P5.70 billion or 94 percent of its estimated income of P6.01 billion in 2019, the audit agency also expressed misgivings over the low collection of “non-tax revenues.” 
 
COA disclosed that the shortfall for non-tax revenues has reached P371.37 million or 28.22 percent of the target “because measures and strategies to improve collection efficiency were not adopted.”
 
The city government under Mayor Jaime Fresnedi also won praises from COA in its 2019 annual audit report that may have neutralized several adverse audit observations.
 
“The city is continuously exercising good fiscal management by paying its various loans ahead of its maturity date while sustaining the needs of its constituency,” auditors said.
 
COA also gave Muntinlupa City good reviews for social waste management, property insurance, implementation of the Special Education Fund and handling of the Local Disaster Risk Reduction and Management Fund.
 
However, the state audit agency lamented the failure of the city government to reduce the realty  tax delinquency total of P2.931 billion.
 
“The city could have generated additional income from Real Property Tax (RPT) had the realty tax delinquency of P2.931 billion been collected by implementing the remedies provided for under RA No. 7160,” COA said.
 
         During the year in audit, the city government collected P1.106 billion in realty tax, the second biggest contributor to the total collection in 2019.
 
            “However, the balance of receivables for RPT at the beginning of the year amounting to P1,155,467,846.06  plus the recorded receivables during the year of P1,382,286,828.08 or a total of P2,537,754,674.14 showed that the actual collection of P1,106,916,432.63 is only 43.62 percent of the total receivables,” the audit report revealed.
 
During the year, a total P2,931,628,770.95, including penalties, was reported as tax delinquency for the nine barangays in Muntinupa.
 
The highest amount of tax delinquency was registered in Alabang at P1.035 billion. The unpaid RPT includes the joint venture lots that are part of the joint venture agreement between government as owner and Filinvest Development Corporation as beneficiary for the development of the property.
 
To reduce delinquency among property owners, COA asked the city government to apply sanctions provided under Republic Act No. 7160 “to deter delayed payment or non-payment of taxes."
 
Auditors said the non-tax revenue shortfall of P371.37 million can be substantially reduced if “measures and strategies to improve collection efficiency” were observed.