real property tax 3

7/23/2019 real property tax 3

http://slidepdf.com/reader/full/real-property-tax-3 1/51

Real Property TaxationFundamental Principles

1. Current and fair market value is the basis of appraisal

2. Uniformity in classification in each !U should be observed

". #ctual use of the property is the basis of classification

$. #ppraisal% assessment% ley and collection should not be let toany private person

&. '(uitable appraisal and assessment



)ature and Characteristic of Real Property Tax*s a direct tax on o+nership or possession of lands and buildin,s or

other improvements thereon payable re,ardless of +hether theproperty is used or not

#d valorem tax - the assessed value is the tax base

Proportionate - the tax is calculated on the basis of a certain

percenta,e of the value of the property assessed*ndivisible sin,le obli,ation

ocal Tax

Real Property Taxation covers the administration% appraisal%assessment% levy and collection of RPT includes land buildin,% otherstructures includin, machineries/



Administration of the Real Property Tax. -

The provinces and cities, including the municipalitieswithin the Metropolitan Manila Area, shall be

primarily responsible for the proper, efficient and

effective administration of the real property tax.



0ppraisal #nd #ssessment of realproperty tax

Rule on appraisal of RPT at F

3eclaration of Real property

istin, of real property in the assessment rollsPreparation of schedules of F

Classes of Real property

#ctual Use of real property#ssessment of real property

#ssessment of machinery



4o+ is fair market value determined5

*n Allied Banking Corporation v. Quezon City 6ection " of City 7rdinance)o. "&8 of 9ue:on City +as sou,ht to be nullified insofar as it adopted amethod of assessment or appraisal of real property contrary to the 1;;1!C% its *RRs and ocal #ssessment Re,ulations )o. 1<;2. =#ccordin,ly%>the 6upreme Court held that 6ection " of the ordinance? directin, thatthe real property tax be based on the actual amount reflected in thedeed of conveyance or the prevailin, @*R :onal value is invalid not onlybecause it mandates an exclusive rule in determinin, the fair marketvalue but more so because it departs from the established proceduresstated in the ocal #ssessment Re,ulations )o. 1<;2 and undulyinterferes +ith the duties statutorily placed upon the local assessor by

completely dispensin, +ith his analysis and discretion +hich the >1;;1!C and its *RRs? re(uire to be exercised. #n ordinance that contravenesany statute is ultra vires and void.A >#llied @ankin, Corporation v.9ue:on City !overnment% !R )o. 1&$12B% 11 7ct. 2&.?



3eclaration of Real property

Cenido v. #pacionado% !R )o. 1"2$8$%1; )ov. 1;;;

7ne issue in the case of Cenido v. Apacionado +as thevalidity of Tax 3eclaration )o. 2<"BD in the name of Cenidoover a parcel of land in Ri:al. The ans+er to this issue hin,edon another more substantive issue% that is% +hether Cenido

validly ac(uired the subEect property% bein, the soleille,itimate son of #parato. The 6upreme Court found thatCenido failed to prove any successional or administrativeri,hts to #paratos estate. The Real Property Tax Codeprovided that realty tax shall be assessed in the name of the

person =o+nin, or administerin,A the property on +hich thetax +as levied. Cenido neither o+ned nor administered thesubEect property. 4ence% Tax 3eclaration )o. 2<"BD inCenidos name must be declared null and void. >



4o+ may exemption from real property tax be proven

*n Provincial Assessor of Marinduque v. Court of Appeals% arcopper inin,Corporation +as assessed realty taxes due on its real properties in arindu(ue%includin, its 6iltation 3am and 3ecant 6ystem +hich +as covered by Tax3eclaration )o. &<"&B;8. arcopper protested the realty taxes assessed on the6iltation 3am and 3ecant 6ystem on the ,round that the subEect property +as

exempt from real property taxation under 6ection 2"$e/ of the 1;;1 !C. 7n+hether arcopper complied +ith the evidentiary re(uirements for exemption forreal property taxation prescribed under 6ection 2B of the 1;;1 !C% the 6upremeCourt had this to sayH =The burden is upon the taxpayer to prove% by clear andconvincin, evidence% that his claim for exemption has le,al and factual basis. #saptly pointed out by petitioner% there is no alle,ation nor evidence in respondentspleadin,s that it had complied +ith the procedural re(uirement under 6ection

2B. There is nothin, in the records that +ould indicate that% +ithin " days fromits filin, of Tax 3eclaration )o. &<"&B;8 on )ovember 18% 1;;"% respondent filed+ith the provincial assessor an application for exemption or any documentaryevidence of the exempt status of the subEect property.A >Province of #ssessor ofarindu(ue v. Court of #ppeals% !R )o. 18&"2% " #pr. 2;.?



#ppraisal and #ssessment of RealProperty Tax

3eclaration of real property 6+orn statement declarin, the true current F filed +ith the

!U assessor once every " years

Refusal or failure to make such declarationH #ssessor shalldeclare the property in the name of the defaultin, o+ner ora,ainst an unkno+n o+ner and assess the property fortaxation



Responsibilities of the Re,ister of 3eeds in relation tothe real property taxation

To ascertain +hether or not any real property enteredinto the Re,istry of Property has escaped discovery andlistin, for the purpose of taxation

*t shall be the duty of the re,ister of deeds to re(uiredevery person +ho shall present for re,istration of adocument of transfer% alienation% or encumbrance ofreal property to accompany the same +ith a certificateto the effect that the real property subEect of transfer%alienation or encumbrance has been fully paid of all realproperty taxes due thereon%



Properties +hich are liable for Realproperty tax

and

@uildin,s

achinery and

7ther improvements not other+ise exempted under the!C



Classification of and for purposes of #ssessmentCommercial

#,ricultural

Residential

ineral

*ndustrial

Timberland

6pecial - 4ospitals% Cultural and scientific purposes I o+nedand used by local +ater districtsI !7CCs renderin, essentialpublic services in the supply and distribution of +ater andJor,eneration or transmission of electric po+er



City #ssessor of Cebu City v. #ssociation of @enevolade Cebu% *nc.% !R )o. 1&2;$% D Kune 28.

L *n City Assessor of Cebu City v. Association of Benevola de Cebu,

Inc.% petitioner +as a non<stock non<profit or,ani:ation +hich o+nedChon, 4ua 4ospital C44/ in Cebu City. *t like+ise o+ned the C44edical #rts Center C44#C/. The City #ssessor assessed the C44#Cbuildin, as =commercialA and applied the assessment level of "&M forcommercial buildin,s% and not the 1M special assessment currentlyimposed for C44 and its other separate buildin,s. Nas the medical artscenter built by the hospital to house its doctors a separate commercialestablishment or an appurtenant to the hospital5 The 6upreme Courtclassified the C44#C buildin, as =specialA for the follo+in, reasonsH1/ C44#C +as an inte,ral part of C44I 2/ the C44#C facility +asincidental to and reasonably necessary for the operations of C44I and"/ char,in, rentals for the offices used by its accredited physicians+as a practical necessity and could not be e(uated to a commercialventure.



#ppraisal and #ssessment of RPTRule on appraisal of real property at F

Real property shall be classified% valued and assessed on thebasis of actual use re,ardless of +here located% +hoever o+ns itand +hoever uses it.

Unpaid RPT attached to the property and are char,eable a,ainstthe person +ho had actual or beneficial use and possession of it%

re,ardless +hether or not he is the o+ner.



Properties 'xempt from RPT7+ned by the Republic or its political subdivisions except

+hen beneficial use has been ,ranted to a taxable person/Charitable institutions% churches% parsona,es% convents

appurtenant thereto% mos(ues% non profit or reli,iouscemeteries% buildin,s and improvements actually directly and

exclusively used for reli,ious% charitable or educationalpurposes.

Those o+ned by Cooperatives

achineries and e(uipment for pollution control andenvironmental protection.



#ppraisal and assessment of realproperty tax

istin, of Real property in assessment rolls



#ppraisal and #ssessment of RealProperty Tax

Preparation of schedules of F #uthority of assessor to take evidence% he may

6ummon o+ners or persons havin, le,al interest or+itnesses

#dminister oaths% or

Take depositions

#mendment of schedule of F< local assessors mayrecommend amendments to correct errors in valuation



#ssessment of real property

#ssessment - the act or process of determinin, thevalue of the property% or proportion thereof subEect totax% includin, the discovery listin,% classification andappraisal of properties

#ssessment levels - the percenta,e applied to the Fto determine the taxable value of the property

#ssessed value or taxable value O F x assessment

level Iassessed value x tax rate O RPT



Classes of Real Property for #ssessmentpurposes

Residential

#,ricultural

Commercial

*ndustrial

ineral

Timberland

6pecial



#ssessment levels shall be fixed by ordinances of the6an,,unian, Panlala+i,an% 6an,,unian, Panlun,sod or6an,,unian, @ayan of a municipality +ithinmetropolitan anila #rea at rates not exceedin,prescribed in the !C



#ssessment evels presentlyprescribe in the l!C

Residential - 2M

#,ricultural - $M

Commercial - &M

*ndustrial < &M

ineral - &M

Timberland - 2M



!eneral Revisions

!eneral revisions of assessments and propertyclassification is done every " year



3ate of 'ffectivity of #ssessment orReassessment

#ll #ssessments or reassessment made after the 1st dayof Kanuary of any year shall take effect on the 1st day ofKanuary of the succeedin, year. 6ection 221 of the !C



*n Province of ueva !ci"a v. I#perial Mining Co., Inc.% *C leased from the ,overnmentminin, claims +ith the ri,ht to explore% develop% mine% extract% and dispose of mineralproducts. *n the 1;BD lease contract% it +as stipulated that *C +ould pay the realty tax onall buildin,s and other improvements built on the land leased. The contract +as silent on theobli,ation of *C to pay realty tax on the mineral land itself. *n 1;8$% the Provincial #ssessordeclared the leased property in the name of *C and assessed the latter for real property tax.

#t the time the lease contract +as executed bet+een the parties% the prevailin, la+ +as C#)o. $8. Under this la+% the basis of realty taxation +as o+nership or interest tantamount too+nership. *n 1;8$% P3 )o. $B$% other+ise kno+n as the Real Property Tax Code% came intobein,. *t chan,ed the basis of real property taxation from o+nership or interest tantamountto o+nership to actual use% even if the user +as not the o+ner. >This actual use standard +ascarried over to the 1;;1 !C.? *n the year 1;8$ and henceforth% +as *C liable to pay realproperty tax on the leased mineral land5 The 6upreme Court ans+ered in the affirmative.Under the provisions of P3 )o. $B$% *C +as subEect to the payment of realty tax on the

mineral land leased by it from the ,overnment. 4o+ever% since P3 )o. $B$ took effect on 1Kune 1;8$ and the assessment in pursuant thereof +as made after 1 Kanuary 1;8$% >applyin,no+ 6ection 221 of the !C? the liability of *C for real property tax on the leased mineralland should start on 1 Kanuary 1;8&. >Province of )ueva 'ciEa v. *mperial



6teps to be follo+ed for the mandatory conduct of,eneral revision of real property assessment pope: vCity of anila

Preparation of the 6chedule of F

The enactment of ordinances

evyin, an annual =ad valoremA tax on real property andan additional tax accruin, to the 6'F fixin, the assessmentlevels to be applied to the market values of real properties

Providin, necessary appropriation to defray expensesincident to ,eneral revision of real property assessments

#doptin, the 6chedule of Fair market values preapred bythe assessors



ope: v City of anila !R )o. 1281";% 1; Feb1;;;.steps in computin, real property tax

#scertain the assessment level of the property

ultiply the market value by the applicable assessmentlevel of the propertyI and

Find the tax rate +hich corresponds to the class of theproperty and multiply the assessed value by theapplicable tax ratesI

arket value x #ssessment evel M - #ssessed value#ssessed value x Tax rate O Real property tax payable



#ssessment of property subEect to @acktaxes

Real property declared for the first time shall beassessed for back taxes for the period it +ould havebeen liable but in no case more than 1 years prior tothe date of initial assessment

Computation based on the schedule of valuescorrespondin, to the period

Taxes shall be subEect to 2 M per month



#ssessment of achinery

F of brand ne+ machinery is the ac(uisition costI inall other cases % F divided by the remainin, economiclife

*f imported -ac(uisition cost includes% frei,ht insurance%custom duties% plus all inland transportation cost



Person havin, le,al interest

*n ational Po$er Corporation v. Province of Quezon% the Province of9ue:on assessed irant Pa,bilao Corporation for unpaid realty taxesfor the machineries located in its po+er plant in Pa,bilao% 9ue:on.)PC% +hich entered into a @uild<7perate<Transfer #,reement +ithirant% +as furnished a copy of the tax assessment. 6ubse(uently%)PC protested the assessment before the @##% claimin, entitlementto tax exemptions pursuant to 6ections 2"$c/ and 2"$e/ of the 1;;1!C. 7n )PCs le,al standin, to protest the assessment to the @##%the 6upreme Court held that )PC +as not a =person havin, le,alinterest in the property%A and that the phrase did not include an

entity that assumed another persons tax liability by contract.=e,al interest is defined as interest in property or a claim co,ni:able

at la+% equivalent to t%at of a legal o$ner $%o %as legal title to t%e

property.A



Person havin, le,al interest in the property

1/ in +hose name the real property shall be listed% valued% and assessedI

2/ +ho may be summoned by the local assessor to ,ather information on +hich to base themarket value of the real propertyI

"/ +ho may protest the tax assessment before the @## and may appeal the latters decisionto the C@##I

$/ +ho may be liable for the idle land tax% as +ell as +ho may be exempt from the sameI

&/ +ho shall be notified of any proposed ordinance imposin, a special levy% as +ell as +ho mayobEect the proposed ordinanceI

B/ +ho may pay the real property taxI

8/ +ho is entitled to be notified of the +arrant of levy and a,ainst +hom it may be enforcedI

D/ +ho may stay the public auction upon payment of the delin(uent tax% penalties andsurchar,eI and

;/ +ho may redeem the property after it +as sold at the public auction for delin(uent taxes.>)ational Po+er Corporation v. Province of 9ue:on% !R )o. 181&DB% 2& Kan. 21.?



Nhen are assessments appealableto the @##5

L *n Callanta v. &ffice of t%e &#buds#an, follo+in, a ,eneral revision ofassessments of real properties in Cebu City% notices of assessment to,ether+ith the ne+ tax declarations +ere sent to property o+ners. 6ubse(uently%petitioners% +ho +ere officers and staff of the City #ssessors 7ffice%+ithout the authority of the @##% reduced the assessed values of certain

properties. 3id the city officials had the authority to reconsider the earlierissued notices of assessment5 The 6upreme Court ans+ered in this +iseH=+henever the local assessor sends a notice to the o+ner or la+fulpossessor of real property of its revised assessed value% the former shallthereafter no lon,er have any Eurisdiction to entertain any re(uest for arevie+ or readEustment. The appropriate forum +here the a,,rieved party

may brin, his appeal is the @##% as provided by la+.A 7ther+ise stated%the last action of the local assessor on a particular assessment shall be thenotice of assessment. *t is the last action +hich ,ives the o+ner of theproperty the ri,ht to appeal to the @##. >Callanta v. 7ffice of the7mbudsman% !R )os. 11&2&"<8$% " Kan. 1;;D.?



*n 'yste#s Plus Co#puter College of Caloocan City v. (ocal )overn#ent of

Caloocan City, petitioner claimed its parcels of land +ere exempted frompayment of real property tax pursuant to #rticle *% 6ection 2D"/ of the 1;D8Constitution and relevant provisions of the 1;;1 !C. *t further claimed thatthe city ,overnments denial of the application for tax exemption +as not an

=assessmentA that +as appealable to the @##. The 6upreme Court held thatthe denial of the application +as deemed an assessment% thusH =>u?nder6ection 1;;f/% Title **% @ook **% of the ocal !overnment Code of 1;;1%Qassessment is defined as the act or process of determinin, the value of aproperty% or proportion thereof subEect to tax% includin, the discovery% listin,%classification and appraisal of properties. ie+ed from this broaderperspective% the determination made by the respondent City #ssessor +ith

re,ard to the taxability of the subEect real properties s(uarely falls +ithin itspo+er to assess properties for taxation purposes subEect to appeal before theocal @oard of #ssessment #ppeals.A >6ystems Plus Computer Colle,e ofCaloocan City v. ocal !overnment of Caloocan City% !R )o. 1$B"D2% 8 #u,.2".?



Nhat is the effect of failure to appeal to the@## +ithin the prescribed period

L *n *!(' !nergy, Inc. v. Province of Batangas, a lease contract +asentered into bet+een )ational Po+er Corporation and Polar 'ner,y%*nc. +hich later assi,ned its ri,hts to F'6 'ner,y% *nc./ over po+erbar,es moored at @alayan @ay in Calaca% @atan,as. *n 1;;&% F'6received an assessment of realty taxes on the po+er bar,es from theProvincial #ssessor. *nstead of appealin, to the @## as stated in thenotice of assessment and as re(uired by 6ection 22B of the 1;;1 !C%)PC opted to file a motion for reconsideration of the Provincial#ssessors decision. The 6upreme Court held that the remedy chosenby petitioners +as not sanctioned by la+. 6ince petitioners failed toappeal the assessment in due course% the Provincial #ssessorsassessment became final% executory% and demandable. Perfection ofan appeal +ithin the period therefor is both mandatory andEurisdictional. >F'6 'ner,y% *nc. v. Province of @atan,as% !R )os.1BD&&8 and 18B2D% 1B Feb. 28.?



*n +avao &riental !lectric Cooperative, Inc. v. Province of

+avao &riental% petitioner received t+o )otices of#ssessments dated D 7ctober 1;D& and 1 7ctober 1;D& forreal property taxes. Petitioner did not file a protest on the

assessments before the @## as then re(uired by P3 )o. $B$and +ent directly to court. The 6upreme Court stated thatpetitioner failed to exhaust its administrative remedies% andthe conse(uence for such failure +as that the taxassessments% as computed and issued by the Provincial

#ssessor% became final. Petitioner +as deemed to haveadmitted the correctness of the assessment of itsproperties. >3avao 7riental 'lectric Cooperative% *nc. v.Province of 3avao 7riental% !R )o. 18;1% 2 Kan. 2;.?



*n alento v. !scalada, Petron Corporation received from the Provincial #ssessor of @ataan a noticeof assessment for real property taxes over its machineries and e(uipment in imay% @ataan for theperiod 1;;$ up to the second (uarter of 28. Petron appealed to the @## and sou,ht the approvalof a surety bond in an amount close to Php 1." billion. ean+hile% the Provincial Treasurer sent afinal notice of delin(uent real property tax +ith a +arnin, that the subEect properties +ould belevied and auctioned should Petron fail to settle the assessment due. Thereafter% the ProvincialTreasurer issued a Narrant of evy. #ccordin, to the Provincial Treasurer% only Petrons payment

under protest +ould bar the collection of the realty taxes due pursuant to 6ections 2"1 and 2&2 ofthe 1;;1 !C. #t issue +as +hether the collection of taxes could be suspended by reason of thefilin, of an appeal to and postin, of a surety bond +ith the @##. The 6upreme Court stated thatthe issues raised by Petron +ould have a direct bearin, on the assessment made by the ProvincialTreasurer and it +as necessary that these issues be first resolved before the subEect properties+ere sold in public auction. #dditionally% the 6upreme Court had occasion to point out that underRule % 6ection 8 of the Rules of Procedure of the @##H =#n appeal shall not suspend the collectionof the correspondin, realty taxes on the real property subEect of the appeal as assessed by the

Provincial% City or unicipal #ssessor% +ithout preEudice to the subse(uent adEustment dependin,upon the outcome of the appeal. #n appeal may be entertained but the hearin, thereof shall bedeferred until the correspondin, taxes due on the real property subEect of the appeal shall havebeen paid under protest or the petitioner shall have ,iven a surety bond xxx.A 4ere% Petron posteda surety bond e(uivalent to the amount of the assessment due% in compliance +ith the above<citedrule. >Talento v. 'scalada% !R )o. 1DDD$% 28 Kune 2D.?



Po+er to evy RPT

A province or city or a municipality within the Metropolitan Manila Area may levy an annual advalorem tax on real property such as land, building,machinery, and other improvement not hereinafterspecifically exempted.



Rates of evy

A province or city or a municipality within the Metropolitan Manila Area shall fix a uniform rate ofbasic real property tax applicable to their respectivelocalities as follows!

"a# $n the case of a province, at the rate not exceedingone percent "%&# of the assessed value of real property' and

"b# $n the case of a city or a municipality within the Metropolitan Manila Area, at the rate not exceedingtwo percent "(&# of the assessed value of real property.



The following are exempted from payment of thereal property tax!

"a# 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'

# )haritable institutions, churches, parsonages or convents appurtenantthereto, mos*ues, nonprofit or religious cemeteries and all lands, buildings,

and improvements actually, directly, and exclusively used for religious,charitable or educational purposes'

All machineries and e*uipment that are actually, directly and exclusively usedby local water districts and government-owned or -controlled corporationsengaged in the supply and distribution of water and+or generation andtransmission of electric power'

All real property owned by duly registered cooperatives as provided for underR. A. o. /0' and

# Machinery and e*uipment used for pollution control and environmental protection.



Collection of Real Property Tax3ate of accrual

First day of Kanuary *t +ill constitute a lien from such date and shall be extin,uished only

upon payment of delin(uent tax

Collectin, authority

City of municipal treasureray deputi:e baran,ay treasurer to collect

3uty of the assessor is to furnish local treasurer +ith theassessment rolls

)otice and time to collect 7n or before "1st of Kanuary each year% the unicipal or city

treasurer may post a notice of dates +hen tax maybe paid +ithoutinterest



Periods +ithin +hich to collect RPTNithin & years +ithin +hich they become due*n case of fraud 1 years from discovery of such fraud

Period maybe suspended under the follo+in, circumstances

ocal treasurer is le,ally prevented from collectin, tax7+ner or the person havin, le,al interest re(uests for

reinvesti,ation and executes a +aiver in +ritin, before theexpiration of the period

7+ner of the property or the person havin, le,al interest is out

of the country or can not be located



6pecial Rules on paymentPayment in installments @asic RPT and 6'F - in four e(ual installments 6pecial evy< depends upon the provisions of the ordinance

imposin, such special levy



6pecial Rule on *nterests on unpaid RPT

2 M per month but not to exceed "B months



6pecial Rules on Payment of RPT

The 6an,,unian concerned% by ordinance% and uponrecommendation of the ocal 3isaster Coordinatin, Councilmay condone reduce the RPT% due to!eneral failure of crops

6ubstantial decrease in the price of a,ricultural or a,ri based

products calamity



Types of Real Property Tax

@asic real property tax

6pecial levies 6pecial 'ducation Fund 6'F /

#dditional #3 valorem on lands - not exceedin, &M of theassessed value of the property

6pecial assessments - on lands specially benefited bypublic +orks% proEects or improvements funded by !U -shall not exceed BM of the actual cost of such proEects%includin, the land

h i h f h 6 i l



Nhat is the nature of the 6pecial'ducation Fund 6'F/5

L Co##ission on Audit of t%e Province of Cebu v. Province of Cebu identified items+hich +ere char,eable to the 6'F. *n this case% in the audit of accounts conductedby the C7# of the Province of Cebu for the period Kanuary to Kune 1;;D% itappeared that the salaries and personnel<related benefits of the teachersappointed by the province for extension classes +ere char,ed a,ainst theprovincial 6'F. ike+ise char,ed to the 6'F +ere the colle,e scholarship ,rants ofthe province. Conse(uently% the C7# issued )otices of 6uspension to the provincesayin, that the disbursements +ere not char,eable to the provincial 6'F. The6upreme Court ruled that the salaries and personnel<related benefits of theteachers appointed by the provincial school board of Cebu in connection +ith theestablishment and maintenance of extension classes +ere char,eable a,ainst the6'F. The char,e +as limited to extension classes% i.e.% additional classes needed toaccommodate all children of school a,e desirin, to enter in public schools to

ac(uire basic education. #lso% the expenses incurred by the provincial ,overnmentfor the colle,e scholarship ,rants should not be char,ed a,ainst the 6'F% buta,ainst the ,eneral funds of the provincial ,overnment of Cebu. >Commission on#udit of the Province of Cebu v. Province of Cebu% !R )o. 1$1"DB% 2; )ov. 21.?



7ther types of RPT

*dle land tax

#,ricultural land< more than 1 hectareif more than of +hich remain

uncultivated or unimproved)on a,ricultural lands - more than

1s(.m. in area if more than of

+hich remain uncultivated orunimproved



Remedies of !Us for Collection of RPT

*ssuance of )otice of delin(uency of the RPT payment

*mpose local ,overnments lien

evy



evy*ssuance of +arrant by the !U treasurer on or before or

simultaneously +ith the institution of civil action for collection ofdelin(uent tax/

#dvertise sale or auction +ithin " days after service of +arrant/by postin, and publication

6ale

Report of sale +ithin " days after sale/. Preparation of certificateof sale containin, the name of the purchaser% description of the

property % amount of delin(uent tax and its interest% and expenses.

Redemption +ithin 1 year from date of sale/

*ssuance of final 3eed to purchaser upon the delin(uent taxpayersfailure to redeem/

Purchase of property by local treasurer for +ant of bidder in casethere is no bidder for the real property advertised or if the hi,hest

bid is insufficient to pay the RPT and other costs.



Taxpayers Remedies

Contestin, an assessment of value of real property@y Taxpayer +ho has le,al interest in the property may

contest an assessment does not include an entity thatassumes another persons tax liability by contract )PC vs

Prov of 9ue:on% B11 6CR# 81/Nithin B days from receipt of +ritten notice of

assessment - appeal to the @##

Nh i i t d



Nhen is prior payment underprotest re(uired

*n -ardine +avies Insurance Brokers, Inc. v. Aliposa% the akati RevenueCode +as enacted providin, for the schedule of real estate% business andfranchise taxes in then unicipality of akati. The Philippine Racin, Club%*nc. appealed to the 6ecretary of Kustice for nullification of said ordinanceon the ,round that it +as approved +ithout previous public hearin,s. The

6upreme Court discussed the need for prior payment under protest in thismannerH =The Court a,rees +ith petitioner that as a ,eneral precept% ataxpayer may file a complaint assailin, the validity of the ordinance andprayin, for a refund of its perceived overpayments +ithout first filin, aprotest to the payment of taxes due under the ordinance.A *n other+ords% prior payment under protest is not re(uired +hen the taxpayer is

(uestionin, the very authority and po+er of the assessor to impose theassessment and of the treasurer to collect the tax >as opposed to(uestionin, the increaseJdecrease in the tax to be paid?. >Kardine 3avies*nsurance @rokers% *nc. v. #liposa% !R )o. 11D;% 28 Feb. 2".?



*n &livares v. Marquez, petitioners received in 1;;D a final notice from the CityTreasurer of ParaSa(ue on their real estate tax delin(uencies. Petitioners protestedsaid notice and sou,ht reinvesti,ation on the ,rounds thatH 1/ some of the taxes bein,collected had already prescribed and could no lon,er be collected as provided in6ection 1;$ of the 1;;1 !CI 2/ some properties had been doubly taxedJassessedI "/some properties bein, taxes +ere no lon,er existentI $/ some properties +ere

exempt from taxation as they +ere bein, used exclusively for educational purposesIand &/ some errors +ere made in the assessment and collection of taxes due onpetitioners properties. Petitioners eventually resorted to court. *n essence% didpetitioners ar,ument revolve aroundH a/ the assessors authority to assess and collectthe taxes for +hich prior payment under protest +as not re(uired/% or b/ thecorrectness of the assessments made by the assessor on petitioners propertiesnecessitatin, prior payment under protest/5 #ccordin, to the 6upreme Court% a

perusal of the petition filed by petitioners revealed that it dealt +ith item b/.Conse(uently% item b/ consisted of (uestions fact and the petition should have beenbrou,ht% at the first instance% to the @##% and not +ith the re,ular court. )eedless tosay% petitioners should have paid the disputed tax under protest prior to filin, theprotest +ith the local treasurer. >7livares v. ar(ue:% !R )o. 1&&&;1% 22 6ept. 2$.?

Real Property Taxation



Real Property Taxation1. Protest: Assessment of Land Value

#ssessment )otice fromocal #ssessor

Protest +ithin B days

@##12 days to decide/

C@##

#ppeal +ithin " days

CT# 'n @anc

Petition for revie+ +ithin "days

Petition for revie+ onCertiorari +ithin 1& days

6C

2. Protest Assessment/Collection of

RPT

3ate of PaymentPayment under Protest

Re(uired/

Protest +ithin " days

ocal TreasurerB days to decide/

@## 12 days to decide/

C@##

CT# 'n @anc

6C

#ppeal +ithin B days

#ppeal +ithin " days

Petition for revie+ +ithin "

days

Petition for revie+ onCertiorari +ithin 1& days

real property tax 3

Documents