12.5 As of December 31, 2024, the Municipality had significant balances in its RPT
and SET Receivable accounts, as per financial statements, amounting to
₱20,881,378.82 and ₱30,019,046.0, respectively. To determine the Municipality’s
efficiency rate in the collection of Real Property Taxes and Special Education
Taxes, the Audit Team made an analysis of its collection for the two-year period
from CY 2023 to CY 2024, shown below:
Real Property Taxes (RPT)
Beginning Amount Due and Collections % of
Year Total Target Ending Balance
Balance Demandable* during the Year Collections
(a) (b) (c) = (a+b) (d) (e) = (c-d) (f) = (d)/ (c)
2023 32,116,242.53 12,509,459.69 44,625,702.22 5,426,359.58 39,199,342.64 12.16%
2024 39,199,342.64 15,144,426.00 54,343,768.64 5,808,504.13 48,535,264.51 10.69%
Special Education Taxes (SET)
Beginning Amount Due and Collections % of
Year Total Target Ending Balance
Balance Demandable* during the Year Collections
(a) (b) (c) = (a+b) (d) (e) = (c-d) (f) = (d)/ (c)
2023 36,738,256.48 12,509,459.69 49,247,716.17 3,219,436.35 46,028,279.82 6.54%
2024 46,028,279.82 15,144,426.00 61,172,705.82 3,499,774.08 57,672,931.74 5.72%
Average 8.78%
12.6 Since the Municipality did not establish the receivable amounts for both RPT and
SET during the year, the Audit Team estimated the ending balance of these
receivables based on the delinquent taxes for CY 2023 and the amount due and
demandable for CY 2024, as provided by the Municipal Treasurer
12.7 It can be gleaned from the table above that for the past two years, the collection
rates averaged only 8.78% of the total estimated target of the Municipal
Government. Remarkably, the actual collections did not even cover the amount of
receivables at the beginning of the year. As a result, delinquent RPT/SET
Receivables continued to rise each year.
12.8 The notice of delinquency is also posted at the Municipal Hall’s main entrance.
Despite the efforts of the Municipal Treasurer, RPT and SET collections for the
past two years averaged only 8.78%. Further, the Municipal Government did not
enforce remedies in the collection of delinquent taxes by administrative action
through levy on real property or by judicial action.
12.9 The low collection efficiency resulting in the accumulation of delinquent taxes
deprived the Municipality of revenues that could have been used to finance its
various programs, projects, and activities.
12.10 We recommended and the Municipal Treasurer agreed to develop an
effective tax collection campaign to enhance the collection of RPT/SET
Receivables and enforce remedies in the collection of real property such as
the issuance of a warrant on or before, or simultaneously with, the
institution of civil action for the collection of the delinquent tax.
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