Capitol offers tax amnesty for property owners

Local

PROPERTY owners who have been avoiding their land taxes for years can now finally pay without the crushing burden of surcharges and interest.

The Cebu provincial government has launched a two-year Real Property Tax (RPT) Amnesty Program aimed at giving long-delayed accounts a clean slate.

The program took effect on July 5, 2024, and will run until July 5, 2026. Taxpayers are required to pay only the basic RPT, along with Special Education Fund (SEF) contributions, Idle Land Taxes, and other special assessments.

Assistant Provincial Treasurer Edna Toring Obeñita said the amnesty follows Republic Act No. 12001, or the Real Property Valuation and Assessment Reform Act (RPVARA), which fully waives penalties incurred before July 5, 2024.

“This is the best opportunity nga mahatag sa lot owners sa probinsiya nga makabayad na sila sa real property tax without penalties,” Obeñita said.

Records from the Provincial Assessor’s Office show Cebu has more than one million Real Property Units (RPUs).

Penalties alone were projected to reach P26 million this year, while the estimated RPT collectible for 2025 is around P600 million, representing roughly 35 percent of the province’s total revenues.

Obeñita explained that penalties have long discouraged property owners from paying, as surcharges accumulate to levels that become unmanageable.

By law, delinquent RPT accrues at two percent per month, capping at 72 percent after three years.

“Mao man gud na ang problema kay dili sila sayon makabayad sa ilang mga buhis sa yuta kay magka dako man gud ang penalty,” she said.

Accounts dating back to the late 1970s are now included under the amnesty, with all surcharges fully waived.

“Meaning ana kung ilang amoroso is nanglapas pa og tulo ka tuig meaning ato 72% nato siya…Kana palang daan, dako nana siya nga effect kay 72% imong ma save,” Obeñita added.

The Bureau of Local Government Finance (BLGF) issued Memorandum Circular No. 001-2025 to guide local governments in implementing the program.

Section 56 of the Implementing Rules and Regulations (IRR) mandates that penalties on delinquent accounts prior to July 5, 2024, shall no longer apply.

Taxpayers can settle obligations either in full or through installment schemes, provided all payments are completed within the two-year window. Collections will be facilitated through the Treasurer’s Offices in Cebu’s towns and cities.

Obeñita urged property owners to take advantage of the amnesty before it ends on July 5, 2026, emphasizing that paying taxes supports schools, local services, and infrastructure across the province.(MyTVCebu)