The Guaranty/Security Deposits Payable account consists of bidder’s bonds,
performance bonds, and warranty securities.
Customer’s Deposits Payable represents the temporary guaranty deposit required for
the installation of water service based on Municipal Tax Ordinance No. 1 series of 1992,
which is estimated to cover two month’s consumption. It shall be refunded only when the
concessionaires changes or when the service is permanently close, provided that all
outstanding accounts of the depositor, if any, shall first be deducted from the said guaranty.
Note 17 – Deferred Credits/Unearned Income
2024 2023
Current:
Deferred Real Property Tax ₱ 53,232,192.80 ₱ 51,968,031.30
Deferred Special Education 53,232,192.80 51,968,031.30
Other Deferred Credits 54,493,090.14 52,044,802.66
Total Deferred Credits/Unearned Income
– Current ₱ 160,957,475.74 ₱ 155,980,865.26
Non-Current:
Deferred Real Property Tax ₱ 151,758,168.42 ₱ 119,238,034.11
Deferred Special Education 154,694,254.84 122,125,730.48
Other Deferred Credits 290,374,576.03 244,057,639.19
Total Deferred Credits/ Unearned Income
– Non-Current ₱ 596,826,999.29 ₱ 485,421,403.78
Total Deferred Credits/Unearned Income ₱ 757,784,475.03 ₱ 641,402,269.04
Of the total Other Deferred Credits account, ₱87,830,591.86 represents 50% of the
0.5% real property tax payment made by Green Core Geothermal, Incorporated (GCGI) for
CYs 2013 to 2018 and ₱251,250,127.06 represents 0.5% real property tax payment made by
Energy Development Corporation (EDC) and GCGI for CYs 2019-2024, which are under
protest. The Municipality, represented by the Municipal Treasurer and the Provincial
Treasurer, invoked Provincial Tax Ordinance No. 1 series of 1994, and Sections 233 and 235
of RA No. 7160, asserting that the rate of the tax is 2% (1% basic tax and 1% special
education fund tax), while GCGI invoked Section 15c of RA No. 9513, or the Renewable
Energy Act of 2008, which states that: “Any law to the contrary notwithstanding, real and
other taxes on civil works, equipment, machinery, and other improvements of a Registered re
Developer actually and exclusively used for re facilities shall not exceed one and a half
percent (1.5%) of their original cost less accumulated normal depreciation or net book
value: Provided, that in the case of integrated resource development and generation facility
as provided under RA No. 9136, the real property tax shall only be imposed on the power
plant.”
The protest was formally filed by GCGI with the Local Board of Assessment Appeals
(LBBA), Province of Negros Oriental, but as of December 31, 2020, the LBBA had not yet
rendered a decision.
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