More than P4.5 billion in real property taxes remained uncollected by the Davao City government in 2022, the Commission on Audit (COA) said.
In its Annual Audit Report (AAR), COA said the taxes remained uncollected because of the city did not avail itself of the remedies through administrative or judicial action as provided under the 2017 Revenue Code of Davao City.
It cited Section 17.6 of the 2017 Revenue Code of Davao City which mandates that "the City may avail of the remedies by administrative action through levy on real property and sale of real property by public auction or by judicial action."
It pointed out that it is high time for the city to take these remedies since the last time the city treasurer’s office (CTO) did so was over 20 years ago.
Figures from the Tax Mapping and Computer Division of CTO as of August 2022 showed the highest real property tax delinquency in three years amounting to P4,579,557,376, it said.
COA said that the Davao City government claimed that it was unable to collect the real property taxes because of the duplication or double assessments in the tax assessment roll, which may adversely affect the conduct of levy on real property by the CTO.
It also said its auditors noted that the last General Revision of Real Property Assessments and Classification was made by the City Assessor’s Office (CASSO) in 2017 and only completed it in 2019.
"Suffice it to state that the real property tax assessment is already due for revision by the CASSO as mandated by law," the COA said.
"With the primary purpose of equalizing and updating valuation, a general revision may also rediscover properties that have been missing from the tax assessment roll. Of equal importance, it also enables the City Assessor to eliminate duplication/double assessments," it said.
It warned that the existence of duplicates in the tax assessment roll may pose a risk to the city treasurer in serving warrants upon incorrect property owners.
"Had the CTO availed of the remedies allowed by law to enforce the collection of delinquent realty property taxes, and the CASSO ensured the correctness and accuracy of the data contained in the tax assessment roll, the City could have generated more funds necessary to finance its various programs, projects, and activities," COA said.
Thus, it recommended that Davao City should observe strictly the applicable provisions of the law and require concerned offices or departments to implement Section 219 of Republic Act No. 7160, the General Revision of Assessments and Property Classification.
It said the city government should also ensure that actual inspection of all real property is conducted to come up with correct and accurate valuation, and begin intensifying the issuance of notices to the delinquent owners of real property.
"Apply legal remedies allowed by law to enforce the collection of delinquent realty taxes," the COA told Davao City.
The COA likewise want government officials of Davao City to make a representation with the Land Registration Authority (LRA) and execute a Memorandum of Agreement (MOA), if necessary, for the yearly provision of the list of newly-issued Transfer Certificate of Title (TCT).
This should be used as basis for the cancellation by the CTO the recorded previous owner of the real property to prevent the double entry of owners whose property was already sold out or transferred to the heirs or new owner of the property, it said.
For its part, Davao City Treasurer’s Office and City Assessor’s Office both made a commitment to immediately address the issues for the collection of the remaining delinquent real property taxes.
By: Czarina Nicole Ong Ki
More than P4.5 billion in real property taxes remained uncollected by the Davao City government in 2022, the Commission on Audit (COA) said.
In its Annual Audit Report (AAR), COA said the taxes remained uncollected because of the city did not avail itself of the remedies through administrative or judicial action as provided under the 2017 Revenue Code of Davao City.
It cited Section 17.6 of the 2017 Revenue Code of Davao City which mandates that "the City may avail of the remedies by administrative action through levy on real property and sale of real property by public auction or by judicial action."
It pointed out that it is high time for the city to take these remedies since the last time the city treasurer’s office (CTO) did so was over 20 years ago.
Figures from the Tax Mapping and Computer Division of CTO as of August 2022 showed the highest real property tax delinquency in three years amounting to P4,579,557,376, it said.
COA said that the Davao City government claimed that it was unable to collect the real property taxes because of the duplication or double assessments in the tax assessment roll, which may adversely affect the conduct of levy on real property by the CTO.
It also said its auditors noted that the last General Revision of Real Property Assessments and Classification was made by the City Assessor’s Office (CASSO) in 2017 and only completed it in 2019.
"Suffice it to state that the real property tax assessment is already due for revision by the CASSO as mandated by law," the COA said.
"With the primary purpose of equalizing and updating valuation, a general revision may also rediscover properties that have been missing from the tax assessment roll. Of equal importance, it also enables the City Assessor to eliminate duplication/double assessments," it said.
It warned that the existence of duplicates in the tax assessment roll may pose a risk to the city treasurer in serving warrants upon incorrect property owners.
"Had the CTO availed of the remedies allowed by law to enforce the collection of delinquent realty property taxes, and the CASSO ensured the correctness and accuracy of the data contained in the tax assessment roll, the City could have generated more funds necessary to finance its various programs, projects, and activities," COA said.
Thus, it recommended that Davao City should observe strictly the applicable provisions of the law and require concerned offices or departments to implement Section 219 of Republic Act No. 7160, the General Revision of Assessments and Property Classification.
It said the city government should also ensure that actual inspection of all real property is conducted to come up with correct and accurate valuation, and begin intensifying the issuance of notices to the delinquent owners of real property.
"Apply legal remedies allowed by law to enforce the collection of delinquent realty taxes," the COA told Davao City.
The COA likewise want government officials of Davao City to make a representation with the Land Registration Authority (LRA) and execute a Memorandum of Agreement (MOA), if necessary, for the yearly provision of the list of newly-issued Transfer Certificate of Title (TCT).
This should be used as basis for the cancellation by the CTO the recorded previous owner of the real property to prevent the double entry of owners whose property was already sold out or transferred to the heirs or new owner of the property, it said.
For its part, Davao City Treasurer’s Office and City Assessor’s Office both made a commitment to immediately address the issues for the collection of the remaining delinquent real property taxes.