Davao City, Philippines – The 20th Davao City Council on Tuesday approved an ordinance granting tax amnesty on real property taxes and special levies on real properties. The measure, passed on the third and final reading, aligns with the enactment of Republic Act No. 12001, also known as the “Real Property Valuation and Assessment Reform Act.”
The ordinance aims to provide financial relief to taxpayers by condoning all unpaid penalties, surcharges, and interests on real property taxes, including the Special Education Fund, idle land tax, and other special levy taxes. It applies to tax delinquencies incurred before July 5, 2024, the date when Republic Act 12001 took effect.
Scope and Limitations
Under Section 4 of the ordinance, the tax amnesty program will cover penalties, surcharges, and interests on unpaid real property taxes before the July 5, 2024 cut-off. However, Section 5 explicitly excludes certain properties from availing of the amnesty, including:
- Delinquent real properties already disposed of in public auctions to settle tax delinquencies.
- Real properties under tax delinquency settlements through compromise agreements.
- Real properties involved in pending court cases related to tax delinquencies.
Guidelines for Availing the Amnesty
Section 6 of the ordinance lays out the guidelines and the payment period for taxpayers who wish to benefit from the financial relief. The program will be available for two years, from July 5, 2024, to July 5, 2026. The condonation of penalties, surcharges, and interests will only take effect upon the settlement of the basic real property tax, the Special Education Fund levy, idle land tax, and other special levies within the given timeframe.
Taxpayers may settle their obligations either through full payment in cash or manager’s check, or by installment, provided that all payments are completed within the two-year amnesty period and in compliance with the conditions set under Section 6, paragraph c of the ordinance.
Application Process
To avail of the real property tax amnesty, interested taxpayers must submit an application with the City Treasurer’s Office. The application must include the prescribed form along with the corresponding tax payments.
The approval of this ordinance is expected to provide significant relief to property owners in Davao City while encouraging compliance with real property tax obligations. The local government hopes that the amnesty program will enhance revenue collection while giving taxpayers a fair opportunity to settle their dues without additional financial burdens.
