Mandaue exec agrees Cebu City exempt from real property tax

CEBU, Philippines - Cebu City government may no longer pay real property tax to Mandaue City for its abattoir in Barangay Subangdaku.

This after Judy Ballesteros, chief of the real property division of the treasurer’s office of Mandaue City, concurred with the opinion of the Cebu City legal division that local government unit cannot be taxed for the real property it owns.

Section 234 of the Local Government Code provides the tax exemption for “real property owned by the Republic of the Philippines or any of its political subdivisions except when the beneficial use thereof has been granted for consideration or otherwise, to a taxable person.”

Ballesteros said the Cebu City government is only obligated to pay business tax to Mandaue City.

“Exempted sila (real property) but they have to pay on business tax,” Ballesteros said.

She explained that the abattoir is being operated by the Cebu City government as an economic enterprise.

Mandaue City had been demanding payment from Cebu City government since 2001. It has billed Cebu City P2.8 million in real property tax payables.

Cebu City Mayor Tomas Osmeña already said that his administration will pay taxes to Mandaue City government.

The mayor said that he will close the slaughterhouse in Mandaue City since he is considering building a new sewage treatment plant at the North Reclamation Area.

Both Osmeña and Mandaue City Mayor Gabriel Luigi Quisumbing agreed about removing the foul smell of the waste from the slaughterhouse. (FREEMAN)