Paying real estate property tax, commonly known as “Amilyar,” is a crucial responsibility for property owners in the Philippines. This tax is an obligation that every property owner must fulfill to the government. But what happens if you don’t pay your Amilyar? Let’s break it down.
Why You Must Pay Amilyar
The money collected from real estate property tax is one of the main sources of income for the Local Government Unit (LGU). It funds various projects and programs in your city, pays the salaries of government employees, and covers the overall maintenance of the city. It also helps the local government meet other financial obligations. Without these funds, many essential services and developments in your community could come to a halt.
Consequences of Not Paying Your Real Estate Property Tax
Penalties for Late Payment
If you fail to pay your real estate property tax on time, you will be subject to penalties. Specifically, you will incur a penalty of 2% on the amount of the delinquent tax for each month of delay or part thereof. However, the total penalty will not exceed 24% of the delinquent tax. This penalty rate is applied uniformly across all provinces and cities in the Philippines.
Seizure and Auction of Property
If the tax remains unpaid, the government can take serious action. The provincial or city treasurer can enforce the payment by seizing your personal property, including crops growing on your land. A certificate showing your tax delinquency will be issued, which serves as a warrant for the seizure of your personal property.
Once your property is seized, it will be advertised and sold at a public auction to cover the unpaid tax, penalties, and the costs associated with the seizure and sale. The purchaser of the property at this auction will acquire an indefeasible title to it, meaning they will own it outright.
Sale of Real Property
If your real estate tax remains unpaid for a year, the provincial or city treasurer will advertise the sale of your delinquent property at a public auction. This advertisement will be posted for three consecutive weeks at prominent locations, including the main entrance of provincial and municipal buildings. The auction details will also be announced at local markets.
The advertisement will include:
- The amount of taxes, penalties, and costs of sale.
- The date, hour, and place of the auction.
- The name of the taxpayer.
- Details about the property, such as its location and description.
How to Avoid These Consequences
To avoid these severe consequences, property owners must be diligent in paying their real estate property tax. Make sure to:
- Pay your tax on time to avoid penalties.
- Keep track of payment deadlines.
- Contact your local treasurer’s office if you have any questions or need assistance.
Redemption of Seized Property
If your personal property is seized for non-payment of taxes, you still have an opportunity to redeem it. You can reclaim your property by paying the amount of the tax, penalty, and the costs incurred up to the time of payment, before the property is sold at auction.
Paying your real estate property tax is not just a legal obligation but also a civic duty that supports the community. The consequences of not paying this tax can be severe, including penalties, seizure of property, and public auctions. By staying diligent and ensuring timely payments, you can avoid these problems and contribute to the development and maintenance of your locality.