Delinquent RPT and SET
8. Delinquent Real Property Taxes (RPT) and Special Education Taxes (SET)
including penalties accruing thereon which accumulated to ₱23,751,277.85
remained uncollected as of December 31, 2024, depriving the Municipality of
substantial amount of income which could have been utilized to finance the
implementation of various development projects or other major
programs/projects/activities (PPAs).
8.1. Section 254 of Republic Act (RA) 7160 provides that:
“(a) When the real property tax or any other tax imposed under this Title
becomes delinquent, the xxx municipal treasurer shall immediately cause
a notice of the delinquency to be posted at the main entrance of the xxx
municipal hall and in a publicly accessible and conspicuous place in
each barangay of the local government unit concerned. The notice of
delinquency shall also be published once a week for two (2) consecutive
weeks, in a newspaper of general circulation in the xxx municipality.
(b) Such notice shall specify the date upon which the tax became
delinquent and shall state that personal property may be distrained to
effect payment. It shall likewise state that at any time before the
distraint of personal property, payment of the tax with surcharges,
interests and penalties may be made xxx, and unless the tax, surcharges
and penalties are paid before the expiration of the year for which the
tax is due except when the notice of assessment or special levy is
contested administratively or judicially pursuant to the provisions of
Chapter 3, Title II, Book II of this Code, the delinquent real property
will be sold at public auction, and the title to the property will be vested
in the purchaser, subject, however, to the right of the delinquent owner
of the property or any person having legal interest therein to redeem
the property within one (1) year from the date of sale.”
8.2. Furthermore, Section 270 of the same Act provides that the collection of basic RPT
and any other tax levied should be made within five (5) years from the date they
become due and that no action for the collection of the tax, whether administrative
or judicial, shall be instituted after the expiration of such period.
8.3. The balances of delinquent Real Property Tax (RPT) and Special Education Tax
(SET), as shown in the summary of delinquencies by barangay as of December 31,
2024, are summarized on the next page (see details in Appendix 3):
Tax Penalty Total
Real Property Tax ₱ 9,018,867.96 ₱ 2,856,801.73 ₱ 11,875,669.69
Special Education Tax 9,018,848.06 2,856,760.10 11,875,608.16
Total ₱ 18,037,716.02 ₱ 5,713,561.83 ₱ 23,751,277.85
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