Capitol loses P20M in property tax
April 20, 2011
CAPITOL last year lost its P23-million share in the real property tax (RPT) from three former municipalities that have been converted into cities.
Bureau of Local Government Finance (BLGF) official Herminigilda Garsula said the cities of Bogo, Carcar and Naga have submitted their RPT collection reports, anticipating a Supreme Court decision declaring them as cities
She said Naga City has the highest RPT collection record because of a cement factory operating in the area.
Provincial Treasurer Roy Salubre, in separate interview, showed the computation of the three local government units’ basic real property taxes and special education funds (SEF), which once belonged to Capitol’s coffers.
Capitol still provides assistance to the new cities even if they no longer remit shares of their RPTs as Provincial Board members in the districts where the new cities belong cannot say no, said Salubre.
In 2010, Capitol was supposed to receive P23,423,889.9012 as total share of the new cities’ basic RPT and SEF, said Salubre.
Meanwhile, the League of 16 is temporarily withholding its letter to the Department of Budget and Management (DBM) calling for the immediate restoration of its members’ Internal Revenue Allotment (IRA) shares as cities.
The move came after the league, an informal group of 16 new cities, expects the opposing party – the League of Cities of the Philippines – to file a motion for reconsideration within the 15-day period.
The last day of the 15-day period will reportedly be on April 16. The office of lawyer Estelito Mendoza received the latest Supreme Court (SC) decision on cityhood laws last April 15.
Mendoza, a former solicitor general, is the League of 16’s counsel.
Rep. Eduardo R. Gullas (Cebu, 1st) yesterday said the office of Mendoza has drafted a letter-request to the DBM.
The Cebuano lawmaker and Baybay, Leyte Mayor Carmen Cari met Mendoza in the latter’s Manila office last Monday.
Naga, Carcar and Bogo in Cebu and Baybay, Leyte are among the 16 new cities.
Gullas, who is now on his third term, wrote the cityhood laws of Naga and Carcar.
The LCP has vowed to question the latest SC decision, which upheld the constitutionality of the 16 cityhood laws by a 7-6 vote.
It was the second time the SC voted in favor of the League of 16. It handed down a
similar verdict last Feb. 15. The LCP said the new cities have not complied with the amended local income requirement, which rose from P20 million to P100 million.
Suggestion
Gullas said Mendoza’s office drafted the letter upon his suggestion, as he believed the SC will no longer change its mind on its latest ruling.
“But we still have to wait until the 15-day period lapses. Maybe the letter will be submitted in the middle of May,” he said.
Gullas and Cari already signed the letter but Mendoza opted not sign it until all 16 mayors have affixed their signatures.
The mayors are set to meet Mendoza in Manila next week.
Gullas believed the LCP’s second motion for reconsideration can already be considered a prohibited pleading that may no longer be entertained by the SC.
“If they file a second motion, the Supreme Court will either disregard it or acknowledge it but will not vote for it,” he said.
Unlike before, the SC en-banc entertained the motion because the vote then was a deadlock at 6-6.
Gullas said the 6-6 vote did not represent the majority of the members of the SC who participated in the deliberation of the case. OCP/GC
Source: http://www.sunstar.com.ph/cebu/local-news/2011/04/20/capitol-loses-p20m-property-tax-151421
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