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Tax on schools, hospitals in Tom’s speech

First Posted 12:30:00 06/23/2009

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When Cebu City Mayor Tomas Osmeña delivers his State of the City Address in mid-July, expect him to take a dig at schools and hospitals challenging the city?s amended tax ordinance.

Osmeña and his wife Margot leave on Sunday for a medical checkup as a follow-up to his cancer operation last month.

He will return after the City Council holds it July 1 session, the traditional time a mayor delivers the address.

Osmeña said he was not ?thrilled? to list his administration?s accomplishments to impress anyone in the annual State of the City speech but said he recognized the need to let people know about some ?injustices,? especially by hospitals and schools.

?What makes them any different from a parasite?? he asked.

Osmeña earlier threatened to stop services like garbage collection and traffic enforcement in eight private hospitals and schools that are resisting being taxed like other regular businesses under the 2006 ordinance, which was made retroactive to Jan. 1, 2003.

The Department of Justice issued an opinion declaring City Tax Ordinance 113 ?null and void,? but the legal controversy is still pending in the Cebu Regional Trial Court.

The eight schools and hospitals are banking on a Constitutional protection of schools.

Under Article 14, ?all revenues and assets of non-stock, non-profit educational institutions used actually, directly and exclusively for educational purposes shall be exempt from taxes and duties.?

?Proprietary educational institutions? may also be entitled to exemptions subject to limits set by law.

Mayor Osmeña said his responsibility as mayor includes letting everyone know of the ?real situation? in the city, including the non-payment of taxes by schools and hospitals.

?Cebuanos voted for me and gave me their confidence to make a better city. I even try to be strict, but fair and just. That is what I?m trying to do (with schools and hospitals). It?s not popular, but never mind,? the mayor added.

He is expected at the MD Anderson Cencer Center in Houston, Texas, from July 4 to 9.

Before visiting Houston, the mayor also plans to drop by Bogota, Colombia, to take a look at that city?s bus rapid transit (BRT) system, which the mayor wanted to incorporate into Cebu City.

Bogota?s BRT is being held up as a model for Cebu City and hailed as one of the best forms of mass transport in the world.

Osmeña said he was supposed to visit Bogota last month on his way back to Cebu from his operation.

However, the mayor did not proceed because he was afraid that the Colombian government may confine him there because of a breakout of the Influenza A virus subtype H1N1.


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