AN INCREASED tax on the transfer of the real property ownership was part of the proposed 2017 Revenue Code amendments.
Based on the copy of the proposed amended ordinance, "there is hereby levied a tax on sale, donation, barter, or on any other mode of transferring ownership or title of real property at the rate of 87 percent of one percent of the total consideration involved in the acquisition of the property or the fair market value in the case of monetary consideration involved in the transfer is not substantial, whichever is higher."
The proposed amendment will increase the current tax by seven percent.
The 2005 revenue code currently followed by the city dictates that the tax on the sale, donation, barter, or any mode of transferring ownership or title of real property at the rate of 80 percent of one percent.
The proposed time of payment is also 60 days from the execution of the deed which is shorter than then 180 days provided under the 2005 revenue code.
The amended provision also requires a certificate of clearance from local treasurer informing that all current year and past year basic and additional special education fund, real property taxes, and the tax on transfer of real property ownership, due on subject property, have been paid in full including interests or penalties before any document or transfer, alienation or encumbrance of a real property may be registered.
The provision expands the 2005 revenue code requiring only the evidence of payment of tax from the register of deeds and the city assessor shall likewise make the same requirement before cancelling and old tax declaration and issuing a new one.
The new proposed code states that failure to provide the certificate of clearance shall be a valid cause for the registrar of deeds to refuse the registration of the document.
In the absence of such certification or tax clearance, the registration is null and void.
The 2017 proposed tax code states that the registrar of deeds and notaries public shall furnish the city assessor with the copies of all contracts selling, transferring, or otherwise conveying, leasing, or mortgaging real property registered by or acknowledged before them, within 30 days of the date of registration or acknowledgement.
This will amend the provision requiring only notaries public to furnish the city treasurer with a copy of any deed transferring ownership or title to any real property within 30 days of the date of the notarization.
The hearings for the proposed ordinance enacting the 2017 revenue code of the city of Davao is now in the plenary level.
The Davao City Council has yet to agree whether to adapt these newly proposed amendments and provisions in the final 2017 revenue code.