TAXPAYERS REMEDIES

(For Real Property Tax)

By: John Michael Gabriel N. Vida
2005-08748

Remedies for the RPT payer

O Assessment by city/municipal treasurer
O Payment under Protest
O Appeal to the LBAA > CBAA >

Supreme Court (under Rule 65 certiorari)

O Tax Refund/Credit (if the taxpayer gets a
favorable decision)
O Condonation/Reduction of RPT by either
Sanggunian or President
O Repayment of Excessive Collections

RPT Assessment and

Collection
O Provincial/city/municipal assessor

shall prepare and submit to the

treasurer of the LGC involved, on or
Dec. 31, each year, an assessment
roll containing a list of all persons
whose real properties have been
newly assessed or reassessed and
the values of such properties. (Sec.
248, LGC)

O City/municipal treasurer tasked to

collect RPT, as well as interest and

other charges (Sec. 247, LGC) which
accrue on the 1st day of January (Sec.
246, LGC).
O City/municipal treasurer MAY
deputize collection to barangay
treasurer, subject to:
O Barangay treasurer being properly

bonded,
O Bond premium which will be paid by
the city/municipality.

PROOF OF EXEMPTION
Art. 297, LGC IRR:
O Every person who shall claim tax exemption
for real property under this Rule shall file
with the provincial, city, or municipal
assessor within thirty (30) days from the
date of the declaration of real property,
sufficient documentary evidence in support
of such claim (e.g. corporate charters, title
of ownership, articles of incorporation, by
laws, contracts, affidavits, certifications and
mortgage deeds, and similar documents).

PROOF OF EXEMPTION
O If the required evidence is not

submitted within the period herein

prescribed, the property shall be
listed as taxable in the assessment
roll.
O If the property shall be proven to be
tax exempt, the same shall be
dropped from the assessment roll.

RPT Installment
Payments
Sec. 250, LGC:
O GR: Owner of the real property or the
person having legal interest may pay
the basic RPT and Special Education
Fund (SEF) due without interest in
four (4) equal installments.
O EX: Special levy where payment date
is governed by the ordinance
enacted by the Sanggunian
concerned.

Installment Schedule
O Payment done

quarterly:
O 1st installment: on or
before March 31st;
O 2nd installment: on or
before June 30th;
O 3rd installment: on or
before September
30th;
O Last installment: on or
before December 31st

Installment Schedule
O The date for the payment of any

other tax imposed under RPT laws

without interest shall be prescribed
by the sanggunian concerned.
O Payments of real property taxes shall
first be applied to prior years
delinquencies, interests, and
penalties, if any, and only after said
delinquencies are settled may tax
payments be credited for the current
period.

DO YOU HAVE A PROBLEM

(with your assessment)?
O Still pay the RPT but do it

under protest
O NO PAYMENT, NO
PROTEST (Sec. 252(a),
LGC)
O File the written protest
within 30 days from
payment of the tax under
protest
O RPT paid will be held
under trust by the LGC
treasurer concerned.
(Sec. 252(b), LGC)

CMC vs. City of Las

Pias
O DOCTRINE: A letter cannot be considered as a protest on

the assessment if it does not contain any objection or

dispute that could have convinced the LGU Treasurer to
issue a notice canceling wholly or partly the assessment.
O In this case, CMC merely requested for ample time to
consider the validity of the assessment and asked for
specific rulings and ordinances which became the basis
of the assessment.
O Supreme Court ruled that the contest or dispute should
be substantiated and a mere letter of a taxpayer for a
reconsideration of an assessment or a letter devoid of
any substantiation of facts or law cannot be considered
as one that validly disputes an assessment.

IF TAXPAYER WINS:
O The amount or

portion of the tax

protested shall be
refunded to the
protestant, or
applied as tax
credit against his
existing or future
tax liability. (Sec.
252, LGC)

IF TAXPAYER LOSES:
O Avail of the

remedies as
provided for in
Chapter 3, Title II,
Book II of this
Code (Sec.
252(d), LGC)
O IN OTHER
WORDS: Appeal
to the Local
Board of
Assessment

Local Board of Assessment

Appeals
O Any owner or person not satisfied with the action of

the provincial, city or municipal assessor in the

assessment of his property may, within sixty (60)
days from the date of receipt of the written notice
of assessment, appeal to the LBAA. (Sec. 226, LGC)
O LBAA shall decide the appeal within one hundred
twenty (120) days from the date of receipt of such
appeal. (Sec. 229(a), LGC)
O Upon decision, one MR will be allowed to the
taxpayer. After that, the decision will become final
and executory w/in 15 days from receipt of decision,
if not appealed to the CBAA.

Composition of LBAA
members
Art. 318(a), LGC IRR:
O The provincial or city board of
assessment appeals shall be
composed of the following:
O Registrar of Deeds Chairman
O Provincial or City Prosecutor

Member
O Provincial or City Engineer Member

Composition of LBAA
members
Art. 318(b), LGC IRR:
O In the case of municipalities within MMA,
the municipal board of assessment appeals
shall be composed of the following:
O Registrar of Deeds of the municipality or of

the area having custody and jurisdiction over

titles of land within the jurisdiction of the
municipality Chairman
O Prosecutor designated or assigned to the
municipality Member
O Municipal Engineer Member

Central Board of Assessment

Appeals
O Still not happy with the LBAA decision?

Appeal to CBAA! (Sec. 229(c), LGC).

O CBAA is composed of a chairman and two
board members.
O CBAA is given 90 days to decide on appealed
cases from the LBAA. (Rule VI, Sec. 10,
Revised Rules of Procedure before LBAA and
CBAA)
O NOTE: The decision of the Central Board shall
be final and executory within 15 days from
receipt of the decision. (Sec. 229(c), LGC)

QUALIFICATIONS/COMPENSATION:
O The chairman and members of the Central
Board shall be:
1. Filipino citizens,
2. At least forty (40) years old at the time of their

appointment, and
3. Either members of the Bar or Certified Public
Accountants for at least ten (10) years
immediately preceding their appointment.
O The chairman of the Central Board shall have a

salary grade equivalent to the rank of Director

III under the Salary Standardization Law
exclusive of allowances and other emoluments.
O The members of the Central Board shall have
the salary grade equivalent to the rank of
Director II under the Salary Standardization Law
exclusive of allowances and other emoluments.

O There shall also be hearing officers to be

appointed by the CBAA, one each for:

O Luzon - based in Manila
O Visayas - based in Cebu City
O Mindanao - based in Cagayan de Oro City

O They shall serve for a term of six (6)

years, without reappointment until their

successors shall have been appointed
and qualified.
O The hearing officers shall have the same
qualifications as those of the Judges of
the Municipal Trial Courts.

Caltex vs. CBAA

O Under the Real Property Tax Code, the CBAA

has appellate jurisdiction over decisions of the

said local boards of assessment appeals and is,
therefore, in the same category as the Tax
Court.
O Section 36 of the Real Property Tax Code
provides that the decision of the Central Board
of Assessment Appeals shall become final and
executory after the lapse of fifteen days from
the receipt of its decision by the appellant.
Within that fifteen-day period, a petition for
reconsideration may be filed.

O The Code does not provide for the

review of the Board's decision by this

Court. Consequently, the only
remedy available for seeking a
review by this Court of the decision
of the Central Board of Assessment
Appeals is the special civil action
of certiorari.

CONDONATION/REDUCTION
OF RPT
O Covered by Secs. 276-277 of the LGC
O For Sec. 276 this is given when there

is a general failure of crops or

substantial decrease in the price of
agricultural or agri-based products, or
calamity in any province, city or
municipality.
O For Sec. 277 this is given by the
President of the Philippines, when public
interest so requires.

REPAYMENT OF EXCESSIVE
COLLECTIONS
Sec. 253, LGC
O When an assessment of basic RPT, or any
other tax levied under Title II, is found to
be illegal or erroneous and the tax is
accordingly reduced or adjusted, the
taxpayer may file a written claim for refund
or credit for taxes and interests with the
provincial or city treasurer within two (2)
years from the date the taxpayer is
entitled to such reduction or adjustment.

REPAYMENT OF EXCESSIVE
COLLECTIONS
O The provincial or city treasurer shall

decide the claim for tax refund or

credit within sixty (60) days from
receipt thereof. In case the claim for
tax refund or credit is denied, the
taxpayer may avail of the remedies
as provided in Chapter 3, Title II,
Book II of this Code. (i.e. follow
procedure from LBAA to SC)