Cebu City Council OKs voiding real property tax overrides

Local

THE Cebu City Council has given a procedural green light to the executive order (EO) issued by former Mayor Raymond Alvin Garcia that nullifies all real property tax assessments made under the controversial “override” system from March to May 2024.

In its regular session on July 17, the council formally took cognizance of EO No. 20, Series of 2025, which targets real property assessments that bypassed the official market value schedule by using the AS400 system's override function.

These overrides, allegedly initiated by field appraisers, accepted owner-declared values without proper validation, which was found to have violated the Local Government Code.

The council also referred the executive order to the City Legal Office (CLO) for review on its enforceability and legislative recommendations, following a motion by Councilor Dave Tumulak, who sponsored the endorsement.

Garcia’s executive order, signed June 26, voids all assessments made using the override function or marked “refer to sworn declaration” between March 19 and May 8, 2024.

It also mandates a full reassessment of affected properties and the creation of a task force to oversee reforms and accountability.

“All assessments, reassessments, and amended tax declarations encoded or printed through the AS400 ‘override’ function or bearing the ‘refer to sworn declaration’ stamp... are hereby declared void ab initio,” the EO reads.

The order cites an April 10 report from the CLO and a March 17 legal opinion from the Bureau of Local Government Finance (BLGF), which found that the override process breached Section 202 of the Local Government Code by allowing property assessments without using the officially approved schedule of market values.

Garcia warned that the scheme not only led to unjust tax burdens but also “damaged the City’s credibility and, if continued, could lead to widespread public distrust and financial instability.”

The council's action follows mounting public pressure over unexplained property tax spikes. Some property owners reported increases of over 1,000 percent in their assessed taxes.

Just a week earlier, the council approved a resolution from Councilor Jose Abellanosa directing the City Assessor’s Office (CAO) to clarify that no increase in assessed values is valid unless enacted through an ordinance and published according to law.

The advisory aims to reassure the public that any reassessment must follow due process.

The executive order mandates that the City Assessor’s Office conduct a complete reassessment of affected properties within 90 days, using the last approved market value schedule.

Meanwhile, the City Treasurer’s Office is directed to halt tax collections and penalties on the impacted accounts. Any overpayments will be applied as tax credits in accordance with the Local Government Code.

To oversee implementation, a multi-agency Task Force SMV Integrity will be formed, comprising representatives from the City Legal Office, City Assessor’s Office, City Treasurer’s Office, Management Information and Computer Services, and Internal Audit, with weekly progress reports required.

The order also calls for the immediate deactivation of the override function in the AS400 system, enhanced audit and access controls, and executive-level approvals for system changes.

Personnel suspected of involvement or benefiting from the override are to be suspended, with administrative charges to be filed within 15 days by the Committee on Discipline and Investigation.

Additionally, a public help desk and hotline will be established to assist affected taxpayers.

Among those named in the CLO report is former city administrator Lawyer Collin Rosell, who denied wrongdoing and criticized the investigation.

“I was never notified or called… I’m even surprised that there is such a thing as conduct of investigation,” said Rosell. “For lack of notice and due process, the investigation and its output is clearly malicious and libelous if not a ploy for public persecution.”

Rosell maintained that there were no illegal tax increases, and that all system adjustments were made properly. He emphasized that valuation alone does not constitute taxation.

“Valuation is not taxation… If the value of the property increases, the amount of tax liability follows,” he said. “A mere computer system cannot cause an increase in real property tax due and payment.”

Rosell added that taxpayers had submitted signed declarations and documents such as building permits, suggesting that the CLO’s report was designed to single out officials unfairly.

The CLO’s investigative report identified the override function as the root of the tax irregularities. The override mechanism allegedly bypassed the city’s market value schedule by allowing field appraisers to encode unverified values, a process it described as “systemic fraud.”

The practice reportedly began in 2022 and was later supported by a 2023 resolution from then-local finance committee chair Jerone Castillo, which approved system upgrades enabling the override.(MyTVCebu)