Post Names of Delinquent Taxpayers, COA says

The Commission on Audit (COA) has advised Cebu City Mayor Michael Rama that the City should come up with a list of delinquent real property taxpayers and post such list at the entrance of City Hall and in other public places.

Delia Monte de Ramos, COA cluster director for local government units, had observed that the administration of Mayor Rama had not complied with Sections 254 and 256 of the Local Government Code.

A personnel of the Cebu City Treasurer’s Office explained that it is the practice to post these notices only when an auction is to be conducted and not when the taxpayer is delinquent.

Section 254 of Republic Act 7160 provides that when the real property tax becomes delinquent because the taxpayers failed to pay their tax obligation to the government, the city treasurer shall immediately cause a notice of the delinquency to be posted at the main hall and in publicly accessible and conspicuous place in each barangay of the local government unit.

The law further said that aside from posting at the City Hall and in the barangay, the notice of delinquency shall be also published in newspapers once a week for two consecutive weeks.

In Cebu City, several real property taxpayers or those owners of lands, buildings and machineries had been delinquent in paying taxes that is why their properties will soon be subject to auction.

“The posting of notices of delinquent real property taxpayers could have generated substantial increase in tax collections,” Monte de Ramos said.

COA also discovered that the city did not update its revenue code, which the law allows to adjust tax rates not often than once every five years, although the adjustment shall not cause increase of tax rates of more than 10 percent.

“Consequently, the potential increase of collections of 10 percent from all local taxes could have significantly increased its cash availability to finance more valuable projects and pay promptly its obligations,” the state auditors said.