PART 4 – LOCAL TAXATION

A. LOCAL GOVERNMENT TAXATION

Local Governments of the Philippines
Q – What are the territorial and political subdivisions of the Philippines?
A – They are:
Provinces;
Cities;
Municipalities;
Barangays;
Autonomous Region of Muslim Mindanao; and
Cordillera Administrative Region.
These political subdivisions are called local governments. They are considered political bodies corporate for the
administration of the affairs of the community within their respective territorial boundaries.
The Dual Status of Local Governments
Q – What the dual status of local governments?
A – Local governments possess dual character, to wit:
(1) In their public or governmental aspect. – They are agents of the state and for that purpose exercise by
delegation a part of the sovereignty of the state such as in the imposition and collection of taxes, preservation
of peace and order, and the establishment of schools; and
(2) In their private or corporate aspect. – They are mere legal entities (similar to a business corporation)
performing functions not strictly governmental. They act for their own purposes and not as subdivisions of the
state. It is in this character that they operate, for instance, public utilities (etc. electric plants, waterworks,
etc.) and public markets.
Taxing Power of Local Governments Not Inherent
Q – Does the local governments have the inherent power to tax?
A – No. Unlike a sovereign state, local governments have no inherent power to tax. Being mere creatures of law,
they may exercise the power only if delegated by them by the national legislature or conferred by the
Constitution. Since the Constitution provides that: “Each local government unit shall have the power to create
its own sources of revenue and to levy taxes, fees, and charges, subject to such limitations and guidelines as the
Congress may provide” – this gives the LGUs the power, INDEPENDENTLY of legislation, to create their own
sources of revenue and to levy taxes to finance governmental activities in their localities. Such power, however,
is “subject to such limitations and guidelines” as may be provided by law (the Local Government Code).
Aspects of Local Taxation
Q – What are the 2 aspect of Local Taxation?
A – Local taxation embraces two aspects, namely:
Levy of taxes, fees, charges, and other impositions; and
Real property taxation
Fundamental Principles of Local Taxation
Q – What are the fundamental principles of local taxation?
A – The fundamental principles of local taxation are as follows:
(1) Taxation shall be uniform in each local government unit;
(2) Taxes, fees, charges and other impositions shall:
(a) be equitable and based as far as practicable on the taxpayer's ability to pay;
(b) be levied and collected only for public purposes;
(c) not be unjust, excessive, oppressive, or confiscatory;
(d) not be contrary to law, public policy, national economic policy, or in the restraint of trade;
(3) The collection of local taxes, fees, charges and other impositions shall not be let to any private person;
(4) 
The revenue collected shall inure solely to the benefit of, the local government unit levying the tax, fee,
charge or other imposition unless otherwise specifically provided herein; and
(5) Each local government unit shall, as far as practicable, evolve a progressive system of taxation.
Local Authority to Exercise Taxing Authority

Q – Who has the authority to exercise the local taxing authority of the LGU?
A – The power to impose a tax, fee, or charge, or to generate revenue under the LGC shall be exercised by the
Sanggunian of the local government unit concerned through an appropriate ordinance.
Veto of Tax Ordinances
Q – May a tax ordinance be vetoed by the local chief executives?
A – Yes. Tax ordinances may be vetoed by local chief executives of the LGUs, except the Punong Barangay (who
has no veto power), on the ground that it is –
ultra vires or
prejudicial to public welfare. "
NOTE: The reasons for the veto must be stated in writing.
Procedure for Approval and Effectivity of Tax Ordinances (Public hearing, pPublication, and Posting)
Q – What is the procedure for the approval and effectivity of tax ordinances?
A – They are as follows:
(a) A public hearing must be conducted prior to the enactment of a tax ordinance.
(b) Within ten (10) days after the approval of the ordinance, certified true copies of all tax ordinances or
revenue measures shall be published in full for three (3) consecutive days in a newspaper of local
circulation. In provinces, cities and municipalities where there are no newspapers of local circulation, it
must be posted in at least two (2) conspicuous and publicly accessible places.
Limitations to LGUs Taxing Power
Q – What are the limitations to the LGU’s taxing authority?
A – The LGUs’ taxing powers are limited to:
Inherent limitations;
Constitutional limitations;
Statutory limitations or those imposed by law, particularly the Local Government Code.
Common Limitations on the Taxing Powers of LGUs under the LGC
Q – What are the common limitations on the Powers of the LGUs?
A – Unless otherwise provided, the following cannot be levied by the local governments:
(1) Income tax, except when levied on banks and other financial institutions;
(2) Documentary stamp tax;
(3) Estate tax, inheritance, gifts, legacies and other 
acquisitions mortis causa, except as otherwise 
provided;
(4) Customs duties, registration fees of vessel and wharfage on wharves, tonnage dues, and all other kinds of
customs fees, charges and dues except wharfage on wharves constructed and maintained by the LGU
concerned;
(5) Taxes, fees or charges on Goods carried into or out of, or passing through, the territorial jurisdictions of local
government units in the guise of charges for wharfage, tolls for bridges or otherwise, or other taxes, fees, or
otherwise
(6) Taxes, fees or charges on Agricultural and aquatic products when sold by marginal farmers or fishermen;
(7) Taxes on business enterprises certified to by the Board of Investments as Pioneer or non-pioneer for a period
of 6 and 4 years, respectively from the date of registration;
(8) Excise taxes on articles enumerated under the NIRC, as amended, and taxes, fees or charges on petroleum
products;
(9) Percentage or VAT on sales, barters or exchanges or similar transactions on goods or services except as
otherwise provided herein;
(10) Taxes on the Gross receipts of transportation contractors and persons engaged in the transportation of
passengers or freight by hire and common carriers by air, land or water, except as provided in the Code;
(11) Taxes on premiums paid by way or Reinsurance or retrocession;
(12) Taxes, fees or charges for the Registration of motor vehicles and for the issuance of all kinds of licenses or
permits for the driving thereof, except tricycles;
(13) Taxes, fees, or other charges on Philippine products actually exported, except as otherwise provided;
(14) Taxes, fees, or charges, on Countryside and Barangay Business Enterprises and Cooperatives duly
registered under the Cooperative Code of the Philippines; and
(15) Taxes, fees or charges of any kind on the National Government, its agencies and instrumentalities, and
local government units.
Objectives of Limiting the Taxing Powers Allocated to LGUs under the Local Government Code
Q – What are the objectives of providing statutory limitations to the taxing powers allocated to LGUs?
A – While the Constitution ensures the viability and self-sufficiency of LGUs by directly granting them general
taxing powers, the Constitution also sees fit to have such taxing power allocated and limited to ensure that:
(1) While the LGUs are being strengthened and made more autonomous, the taxpayers will not be
overburdened or saddled with multiple and unreasonable impositions;
(2) Each LGU will have its fair share of available resources;
(3) The resources of the national government will not be unduly disturbed; and
(4) local taxation will be fair, uniform and just.
Thus, the Local Government Code embodies the limitations called for by the Constitution with respect to the
exercise of the local taxing powers and allocates the local taxes, fees, and other impositions that may be levied
among the different LGUs.
Scope of Taxing Powers of the LGUs, in General
Q – What is the scope of the taxing powers of the LGUs?
A – In general, the taxing powers of the LGUs are as follows:
LGU Scope of Taxing Authority
Provinces May levy only:
(1) Transfer of Real Property Ownership
(2) Business of Publication
(3) Franchise Tax
(4) Tax on Sand, Gravel and Other Quarry Resources
(5) Professional Tax
(6) Amusement Tax
(7) Annual Fixed Tax for every 
delivery truck or van
Municipalities May levy taxes, fees and charges not otherwise levied by provinces
Cities May levy taxes, fees and charges which the province or municipality may impose
Barangays May levy only:
(1) Taxes on stores or retailers
(2) Service fees or charges
(3) Barangay clearance
(4) Other fees and charges
NOTE: All LGUs may also impose reasonable –
(1) service fees,
(2) rates for operation of public utilities, and
(3) toll fees and charges.
Specific taxing power of local government unit (LGUs)
Q – What are the specific taxing powers of the LGUs?
A – The LGUs have the following specific taxing powers:
Power Province Municipality City Barangay
Tax on Transfer of Real Properties (imposed on the sale, X X
donation, barter, or any other mode of transfer of ownership
or title to real property)
Tax on Business of Printing and Publication (imposed on the X X
business of persons engaged in printing, and/or publication
of books, cards, posters, leaflets, handbills, certificates,
receipts, pamphlets, and others of similar nature)
Franchise tax (notwithstanding any exemption granted by X X
any law or any other special law, tax may be imposed on
business enjoying a franchise)
Tax on sand, gravel and other quarry resources (levied on X X
ordinary stones, gravel, earth and other quarry resources as
defined in the NIRC, extracted from public lands or from the
beds of seas, lakes, rivers, streams, creeks, and other public
waters within its territorial jurisdiction
Professional tax (imposed on each person engaged in the X X
exercise of a profession requiring government examination
Amusement tax (Collected from proprietors, lessees, or X X
operators of theaters, cinemas, concert halls, circuses, boxing
stadia, and other places of amusement
Annual Fixed Tax For Every Delivery Truck or Van of X X
Manufacturers or Producers, Wholesalers of, Dealers, or
Retailers in, Certain Products (Imposed on vehicles used for
the delivery of distilled spirits, fermented liquors, softdrinks,
cigars and cigarettes, and other products as may be
determined by the sanggunian, to sales outlets, or consumers
in the province, whether directly or indirectly
Tax on Various Types of Businesses: X X
(1) Manufacturers, assemblers, repackers, processors,
brewers, distillers, rectifiers, and compounders of liquors,
distilled spirits, and wines or manufacturers of any article of
commerce of whatever kind or nature
(2) Wholesalers, distributors, or dealers in any article of
commerce of whatever kind or nature
(3) Exporters and on manufacturers, millers, producers,
wholesalers, distributor, dealers or retailers of essential
commodities enumerated below:
(a) Rice and corn
(b) Wheat and or cassava flour, meat, dairy products, locally
manufactured, processed or preserved food, sugar, salt, and
other agricultural, marine, and fresh water products,
whether in original state or not
(c) Cooking oil and cooking gas
(d) Cement
(e) Laundry soap, detergents, and 
medicine
(f) Agricultural implements. 
equipment and post-harvest
facilities, fertilizers, pesticides, insecticides, herbicides and
other farm inputs;
 (g) Poultry feeds and other animal feeds;
(h) School supplies
(4) Retailers
(5) Contractors and other independent contractors
(6) Banks and other financial institutions
(7) Peddlers engaged in the sale of any merchandise or
article of commerce
(8) Any business which the sanggunian concerned may deem
proper to tax
Fees and charges on regulation/licensing of business and X X
occupation
Fees for Sealing and Licensing of Weights and Measures X X
Fishery Rentals, Fees and Charges X X
Community Tax X X
Tax on Gross Sales or Receipts of Small-Scale Stores/Retailers X
with Fixed Business Establishments
Service Fees and Charges for services rendered in connection X
with the regulations or the use of barangay-owned
properties or facilities such as palay, copra, or tobacco dryers
Barangay Clearance (a city or municipality cannot issue a X
permit for business without a clearance from the barangay
concerned. The sangguniang barangay may impose a
reasonable fee on the clearance)
Other Fees and Charges – X
(a) On commercial breeding of fighting cocks, cockfights,
cockpits;
(b) On places of recreation which charge admission fees;
(c) On billboards, signboards, neon 
signs, and outdoor
advertisements.
Common LGU Revenue Raising Powers:
(1) Service Fees and Charges
X X X X
(2) Public Utility Charges X X X X
(3) Toll Fees or Charges X X X X
Real Property Tax (except the barangay) X X X
(within MM)

Local Business Tax (by Cities and Municipalities)

BLGF Opinion, August 4, 2014
Query 1 - Are homeowners’ associations subject to local business tax (LBT) on association dues, membership
fees and other assessment/ charges collected from its members and other entities?
Answer: No. Homeowners’ associations are NOT subject to LBT on association dues, membership fees and other
assessment/charges collected from its members and other entities.
Section 18 of RA No. 9904 (Magna Carta for Homeowners and Homeowners’ Associations and For Other
Purposes) provides that “in recognition of the associations’ efforts to assist the LGUs in providing such basic
services, association dues and income derived from rentals of their facilities shall be tax-exempt.” As such,
association dues, membership fees and other assessment/charges collected by homeowners’ associations,
regardless of whether such associations are non-stock/non-profit or not, are exempt from LBT. However, such
exemption is subject to the condition that such income and dues shall be used exclusively for the cleanliness,
safety, security and other basic services needed by the members, including the maintenance of the facilities
within the respective subdivisions or villages.
Query 2 - Are homeowners’ associations subject to licenses and fees?
Answer: Yes. Homeowners’ associations are subject to regulatory fees and charges imposed under the police
powers of the local government units, as there is no law which provides for exemption from such fees and
charges.
Rules on Payment of Business Tax
Q – What are the rules on the payment of business taxes?
A – The rules on the payment of business taxes (cities and municipalities) are as follows:
(a) Taxes in Sec. 143 shall be paid for every separate or distinct establishment or place where business subject
to tax is conducted.
(b) One line of business is not exempted by being conducted with some other businesses for which such tax
has been paid.
(c) The tax on a business must be paid by the person conducting it.
(d) If a person operates 2 or more businesses mentioned in Sec 143 which are taxed; computation shall be
based on:

(1) combined total gross sales/receipts if subject to the same tax rate

(2) separate reports on gross sales/receipts if subject to different tax rates
Yamane vs. Lepanto Condo Corp. (Oct. 23, 1995)
Q – Are condominium corporations subject to a local business tax?
A – No. Condominium corporations are not business entities, and are thus not subject to local business tax. Even
though the corporation is empowered to levy assessments or dues from the unit owners, these amounts are
not intended for the incurrence of profit by the corporation, but to shoulder the multitude of necessary
expenses for maintenance of the condominium.
Ericsson Telecoms vs. City of Pasig (Nov. 22, 2007)
Q – Ericson Telecoms was assessed a business tax by the City Government of Pasig based on its gross revenues.
Ericson Telecoms contested the assessment claiming that the business tax should be based on gross receipts
not on gross revenues. What’s the basis of a business tax, gross receipts or gross revenue?
A – A business tax must be based on gross receipts, it being different from gross revenue.
Gross receipts include money or its equivalent actually or constructively received in consideration of services
rendered or articles sold, exchanged or leased, whether actual or constructive.
In contrast, gross revenue covers money or its equivalent actually or constructively received, including the value
of services rendered or articles sold, exchanged or leased, the payment of which is yet to be received.
Sec. 143 specifically provides “gross receipts” as defined by Sec. 131 as the basis of the business tax.
Situs of Tax Collected
under Sec. 150 of the LGC
Q – What is the situs of tax collected under Sec. 150 of the LGC?
The situs of local taxation shall be determined by the following rules:
RULE 1: In case of persons maintaining/operating a branch or sales outlet making the sale or transaction, the
tax shall be recorded in said branch or sales outlet and paid to the municipality/city where the branch or sales
outlet is located.
RULE 2: Where there is NO branch or sales outlet in the city/municipality where the sale is made, sale shall be
recorded in the principal office and the tax shall be paid to such city/municipality.
RULE 3: In the case of manufacturers, contractors, producers, and exporters having factories, project offices,
plants, and plantations, proceeds shall be allocated as follows:
(a) 30% of sales recorded in the principal office shall be made taxable by the city/municipality where the
principal office is located
(b) 70% shall be taxable by the city/municipality where the factory, project office, plant, or plantation is
located
RULE 4: In case the plantation is located in a place other than the place where the factory is located, the 70%
in Rule 3 will be divided as follows:
(a) 60% to the city/municipality where the factory is located
(b) 40% to
the city/municipality where the plantation is located
RULE 5: In case of 2 or more factories, plantations, etc. in different localities, the 70% shall be prorated among
the localities where the factories, plantations, etc. are located in proportion to their respective volume of
production.
Allied Thread Co., Inc. v. City Mayor of Manila (1984)

Q – Case: Allied Thread Co. is engaged in the business of manufacturing sewing thread and yarn under duly
registered marks and labels. It operates its factory and maintains an office in Pasig, Rizal and sells its products
in the City of Manila through its broker or agent, Ker & Company, Ltd. The City of Manila passed an ordinance
imposing on manufacturers, importers or producers, doing business in the City of Manila, business taxes based
on gross sales on a graduated basis. Allied Thread Co. questioned the validity of the business tax. Is the business
tax imposed on Allied Thread valid?
A – Yes. The tax ordinance is valid. The tax is imposed on the performance of an act or occupation, enjoyment
of a privilege. and hence is in the nature of an excise tax. The power to levy such tax depends on the place in
which the act is performed or the occupation is engaged in, not upon the location of the office. Allied Thread
Co., Inc. admits that it does business in the City of Manila through a broker or agent, Ker & Company, Ltd. Doing
business in the City of Manila is all that is required to fall within the coverage of the ordinance.
Shell Co., Inc. v. Municipality of Sipocot, Camarines Sur (1959)
Q – Where is the situs of the contract for purposes of taxation?
A – It is the place of the consummation of the sale, associated with the delivery of the things which are the
subject matter of the contract that determines the situs of the contract for purposes of taxation, and not merely
the place of the perfection of the contract.
“It is not the place where the contract was perfected, but the place of delivery which determines the taxable
situs of the property sought to be taxed. Thus, it is all inconsequential that, as the herein appellee makes much
of, the subject transactions were perfected and consummated in Manila and that payments therefor to Shell
were made in Manila by the purchasers. As We ruled in the case of Shell v. Sipocot, G.R. No, L-12680, March 20,
1959, sustaining the theory advanced by the very appellee herein —
From the explanatory note and the general discussion in Congress over the bill (House Bill No. 5288), it
can be readily gathered that one of the main purposes for the enactment of the law was to provide for
the construction and the improvement of principal road systems in municipalities. (Congressional Record,
House of Rep., Vol. III, No. 67, pp. 2093, et seq.) The logical conclusion would accordingly follow that the
taxable situs of the property to be taxed should be where the same is used. This place is ordinarily the
place of delivery. As correctly pointed out by the appellants (SHELL) the term "sold" under the statute and
the ordinance in question does not mean a mere perfected contract but a consummated sale, where
delivery becomes of the essence in determining the situs of the sale. In the cases of Soriano y Cia. v.
Collector of Internal Revenue, 51 O.G. 4548; Vegetable Oil Corporation v. Trinidad, 45 Phil. 822; and
Earnshaw Docks and Honolulu Iron Works vs. Collector of Internal Revenue, 54 Phil. 696 it has been ruled
that for a sale to be taxed in the Philippines it must be consummated there; thus indicating that the place
of consummation (associated with the delivery of the things subject matter of the contract) is the accepted
criterion in determining the situs of the contract for purposes of taxation, and not merely the place of the
perfection of the contract. (p. 5, Emphasis supplied.)”
COMMUNITY TAX
Q – Who may levy community tax?
A – Community taxes are levied by cities and municipalities
Q – Who are the persons liable to pay community taxes?
A – The following are liable to pay community taxes:
(1) Individuals who are – 

(a) Inhabitants of the Philippines
(b) Eighteen years of age or over
(c) Either:
(i) Regularly employed on a wage or salary basis for at least 30 consecutive working days during any
calendar year
(ii) Engaged in business or occupation
(iii) Owns real property with an aggregate assessed value of P1,000 or more
(iv) Is required by law to file an income tax return
(2) Juridical Persons –
(a) Every corporation no matter how created or organized,
(b) Whether domestic or resident foreign,

(c) Engaged in or doing business in the Philippines
Q – What are the rates of community taxes?
A – The rates are as follows:
(1) Individuals –
(a) Annual community tax of P5.00 PLUS annual additional tax of P1.00 per P1,000.00 of income
regardless whether from business, exercise of profession or property
(b) Never to exceed P5000

(c) Husband and wife shall pay a basic tax of P5.00 each PLUS additional tax based on total property
owned by them and the total gross receipts or earnings derived therefrom
(2) Juridical Persons –
(a) Annual community tax ofP500.00 PLUS annual additional tax of not more than P10,000.00 according
to the ff. schedule:
(i) P2.00 for every P5,000 worth of real property in the Philippines owned during the preceding year
based
(ii) P2.00 for every P5,000.00 of gross receipts derived from business in the Philippines during the
preceding year.
(b) Dividends received by a corporation from another corporation shall be deemed part of the gross
receipts or earnings for purposes of computing additional tax.
Q – Who are exempts from paying community taxes?
A – The following are exempt from paying community taxes:
(1) Diplomatic and consular representatives; and
(2) Transient visitors who stay in the Philippines for not more than 3 months
Q – Where are community taxes paid?
A – Community taxes are paid where the individual resides, or where the principal office of the juridical entity
is located.
Q – Where does community taxes accrue and when are they paid?
st
A – Community taxes accrue on the 1 day of January of each year which shall be paid not later than the last
day of February of each year.
Q – What is the penalty for non-payment of the community tax?
A – If the community tax is unpaid within the prescribed period, an interest of 24% shall be added per annum
from the due date until payment.
Presentation of Community Tax Certificate
Q – When is the presentation of a Community Tax Certificate necessary?
A – The Presentation of Community Tax Certificate is necessary when an individual subject to community tax:

(a) Acknowledges any document before a notary public;
(b) Takes the oath of office upon election or appointment to any position in the government service;
(c) Receives any license, certificate, or permit from any public authority;
(d) Pays any tax or fee;
(e) Receives any money from any public fund;
(f) Transacts other official business;
(g) Receives any salary or wage from any person or commission.
Q – Is the presentation of the Community Tax Certificate required in the registration of a voter?
A – No. The presentation of certificate is not required in the registration of a voter.
Q – May the city or municipal treasurer deputize the barangay treasurers to collect community taxes?
A – Yes. The city or municipal treasurer may deputize the barangay treasurers to collect, provided the latter be
bonded.
Note: If the community tax is actually and directly collected by the city or municipal treasurer, the community
tax accrues entirely to the general fund. However, if the community taxes are collected through the barangay
treasurers, the community taxes collected shall be apportioned equally.
Civil Remedies by the LGU for Collection of Revenues:
General Rule: Unpaid Local Taxes as LGU’s Lien
Local taxes, fees, charges and other revenues constitute a lien, superior to all liens, charges or encumbrances in
favor of any person, enforceable by appropriate administrative or judicial action, not only upon any property or
rights therein which may be subject to the lien but also upon property used in business, occupation, practice of
profession or calling, or exercise of privilege with respect to which the lien is imposed.
The lien may only be extinguished upon full payment of the delinquent local taxes fees and charges including
related surcharges and interest.
Civil Remedies
Q – What are the civil remedies available to the government for the collection of local taxes?
A – The civil remedies of the LGUs for the collection of local taxes are as follows:
(a) Administrative Action through –
(1) distraint of goods, chattels, or effects, and other personal property of whatever character, including
stocks and other securities, debts, credits, bank accounts, and interest in and rights to personal property;
and
(2) levy upon real property and interest in or rights to real property);
(b) Judicial Action
LGU’s Simultaneous Civil Actions
Q – The City Government of Manila simultaneously levied upon the real property of Mr. A for unpaid business
taxes to the LGU and at the same filed a collection suit against Mr. A for the same unpaid taxes. Mr. sought the
dismissal of the collection suit filed by the City of Manila on the ground that a levy was already made upon his
real property. Will the collection suit filed by the City of Manila prosper?
A – Yes. The City of Manila may simultaneously exercise its administrative and judicial remedies against Mr. A.
Either of these remedies or all may be pursued concurrently or simultaneously at the discretion of the local
government unit concerned.
Administrative Remedies/Actions
Q – What is the administrative remedies/actions of LGUS and procedure for collection of delinquent local taxes?
A – The administrative remedies/actions of LGUS come as follows:
(a) Distraint of personal property
Personal properties subject to distraint: goods, chattels or effects and other personal property of
whatever character, including stocks and other securities, debts, credits, bank accounts, and interest in
and rights to personal property
Procedure:
(1) Seizure of personal property
(2) Accounting of distrained goods
(3) Publication of time and place of sale and 
the articles distrained
 (4) Release of distrained property upon 
payment prior to sale
(5) Procedure of sale
(6) Disposition of proceeds
(b) Levy of real property, procedure

Levy upon real and interest in or rights to real property
Procedure:
(1) Preparation of a duly authenticated 
certificate by the LGU Treasurer effecting 
the levy on the
real property
(2) Service of written notice of levy to the 
assessor and Register of Deeds
(3) Annotation of the levy on the tax declaration and the certificate of title
(4) Advertisement and Sale
(c) Further distraint or levy

The remedies of distraint or levy may be repeated if necessary until the full amount due, including all
expenses, is collected
Exemption of personal property from distraint or levy

Q – What properties are exempt from distraint or levy?
A – The following are exempted from distraint or levy?
(1) Tools and implements necessarily used by the taxpayer in his trade or employment;
(2) One horse, cow, carabao, or other Beast of 
burden, such as the delinquent taxpayer may select and
necessarily used by him in his ordinary occupation;
(3) His necessary Clothing, and that of all his family;
(4) Household furniture and utensils necessary for housekeeping and used for that purpose by the delinquent
taxpayer, such as he may select, of a value not exceeding P10,000;
(5) Provisions, including crops, actually provided for individual or family use sufficient for 4 months;
(6) The professional Libraries of doctors, engineers, one fishing boat and net, not exceeding the total value of
P10,000 by the lawful use of which a fisherman earns his livelihood; and
(7) Any material or article forming part of a house or improvement of any real property
Penalty on local treasurer for failure to issue and execute warrant of distraint or levy
Q – What is the penalty on the local treasurer for failure to issue and execute a warrant of distraint or levy?
A – The local treasurer who fails to issue a warrant of distraint or levy is automatically dismissed from the
service after due notice and hearing.
Procedure for Judicial Action
Q – How is a judicial action for the collection of delinquent local taxes instituted?
A – A judicial action for the collection of delinquent local taxes may be instituted as follows:
(a) An 
ordinary civil action for the collection of delinquent taxes, fees, charges or other revenues is filed with
regular courts of proper jurisdiction (RTC if it exceeds P300k outside MM and P400k within MM; MTC if it does
not exceed P300k outside MM and P400k within MM);
(b) The civil action shall be filed by the local treasurer.
Valley Trading Co. vs. CFI of Isabela, (1989)
Angeles City v. Angeles City Electric Corporation, (2010)
Q – May the Courts issue a writ of injunction to enjoin the collection of local taxes?
A – Yes. The prohibition on the issuance of a writ of injunction to enjoin the collection of taxes applies only to
national internal revenue taxes, and not to local taxes. The Local Government Code does not contain a provision
prohibiting courts from enjoining the collection of local taxes. Such lapse may have allowed preliminary
injunction under Rule 58 of the Rules of Court where local taxes are involved.
Taxpayer’s Remedies on Local Taxation:
Periods of assessment and collection of local taxes, fees or charges

Q – What is the period of assessment of a deficient local tax?
A – An assessment for the payment of a local tax deficiency must be made within 5 years from the date the
local tax become due.
However, in case of fraud or intent to evade tax the assessment must be made within
10 years from discovery of fraud or intent to evade payment.
Q – What is the period of collection of a delinquent local tax?
A – The collection of a delinquent local tax must be made within 5 years from the date of assessment by
administrative or judicial action.
Instances When Running of Prescription Periods is Suspended

Q – What are the instances when the running of the prescriptive periods is suspended?
A – The running of the prescriptive periods is suspended:
(a) When the treasurer is legally prevented from making the assessment or collection (e.g. a TRO or injunction
was issued against the treasurer);
(b) When the taxpayer requests for reinvestigation and executes a waiver in writing before lapse 
of the
period for assessment or collection.
(c) When the taxpayer is out of the country or otherwise cannot be located.
Protest of Assessment and Judicial Appeal
Q – What is the procedure in protesting an assessment?
A – The procedure is as follows:
1. Within sixty (60) days from the receipt of the notice of assessment, the taxpayer may file a written protest
with the local treasurer contesting the assessment, otherwise, it shall become final and executory.
2. The Treasurer is given a period of sixty (60) days within which to decide the protest.
3. If the Treasurer denies the protest or he fails to act on the protest within sixty (60) days, the taxpayer shall
have thirty (30) days from the receipt of the denial of the protest or from the lapse of the sixty (60) day period
prescribed herein within which to appeal with the court of competent jurisdiction otherwise the assessment
becomes conclusive and unappealable.
Claim for refund of tax credit for erroneously or illegally collected tax, fee or charge
Q – What are requirements for a claim for refund or tax credit to be valid?
A – The requisites of a valid claim for refund or tax credit are as follows:
(a) A written claim for refund or credit must be filed with local treasurer;
(b) The claim must be brought within 2 years from payment 
of tax, fee or charge or from the date the
taxpayer became entitled to refund or credit.
B. REAL PROPERTY TAXATION
FUNDAMENTAL PRINCIPLES
Q – What are the fundamental principles of real property taxation?
A – The appraisal, assessment, levy and collection of real property tax shall be guided by the following
fundamental principles:
(a) Real property shall be appraised at its current and fair market value;
(b) Real property shall be classified for assessment purposes on the basis of its *actual use (regardless of where
located, whoever owns it, and whoever uses it);
(c) Real property shall be assessed on the basis of a uniform classification within each local government unit;
(d) The appraisal, assessment, levy and collection of real property tax shall not be let to any private person;
and

(e) The appraisal and assessment of real property shall be equitable.
Note: *Actual Use - refers to the purpose for which the property is principally or predominantly utilized by the
person in possession thereof.
Definition of Usage
Q – What does usage mean?
A – Usage means direct, immediate and actual application of the property (MCIAA v. Marcos, Sept. 11, 1996)
NATURE OF REAL PROPERTY TAX
Q – What is the nature of a real property tax?
A – A real property tax has the following nature:
(1) It is a direct tax on the ownership or use of real property
(2) It is an ad valorem tax (value is the tax base)
(3) It is proportionate because the tax is calculated on the basis of a certain percentage of the value 
assessed.
(4) It creates a single, indivisible obligation
(5) It attaches on the property (i.e., a lien) and is 
enforceable against it.
(6) With respect to LGUs, it is levied thru a delegated power
IMPOSITION OF REAL PROPERTY TAX
Coverage
Q – What is the coverage of RPT or a Province, or a City or Municipality within Metro Manila?
A – It covers the following:
(a) Land

(b) Building

(c) Machinery

(d) Other improvements not specifically exempted
Rate
Q – What is the applicable RPT rate?
A – The rate shall be as follows:
(a) Province: not exceeding one percent (1%) of the assessed value of real property; and

(b) City or municipality within Metro Manila: not exceeding two percent (2%) of the assessed value of real
property.
LGU’s Special Levies Authorized by the LGC
Q – What are special levies?
A - In addition to the basic realty tax, the LGC authorizes the LGUs to impose and collect the following special
levies:
1. Additional ad valorem tax on idle lands;
2. Special levy on lands benefited by LGU’s public works; and
3. Additional levy on real property for special education fund.
Special Levy on Idle Lands
Q – May a special levy be made on idle lands?
A – Yes. A province, or city or municipality within Metro Manila may levy an annual tax on idle lands at the
rate not exceeding five percent (5%) of the assessed value of the property in addition to the basic tax
Q – What are the idle lands that are covered
by this special levy?
A – The special levy on idle lands cover the following:
(1) Agricultural Lands
More than one (1) hectare in area suitable for cultivation, dairying, inland fishery, and other agricultural uses,
one-half (1/2) of which remain uncultivated or unimproved
(2) Other than Agricultural

More than one thousand (1,000) square meters in area one half (1/2) of which remain unutilized or
unimproved
Q – Which idle lands are exempted from this special levy?
A – Lands exempt by reason of force majeure, civil disturbance, natural calamity or any cause or circumstance
which physically or legally prevents improving, utilizing or cultivating the same.
Special Levy for Public Works Projects Improvements
Q – May an LGU impose a special levy on the lands to be benefited by a public works projects or improvements?
A – Yes. A province, city or municipality may impose a special levy on the lands comprised within its territorial
jurisdiction specially benefited by public works projects or improvements funded by the local government unit
concerned.
Q – What are requirements for such a special levy?
A – The special levy must comply with the following requisites:
(1) the special levy shall not exceed sixty percent (60%) of the actual cost of such projects and improvements,
including the costs of acquiring land and such other real property in connection therewith;
(2) the special levy shall not apply to lands exempt from basic real property tax and the remainder of the land
portions of which have been donated to the local government unit concerned for the construction of such
projects or improvements;
(3) The tax ordinance shall describe with reasonable accuracy the nature, extent and location of the public
works to be undertaken, the estimated cost, the metes and bounds by monuments and lines and the number
of annual installments which should not be less than five (5) nor more than ten (10) years;
(4) Before the enactment of an ordinance imposing a special levy, the sanggunian concerned shall conduct a
public hearing thereon; notify in writing the owners of the real property to be affected or the persons having
legal interest therein as to the date and place thereof and afford the latter the opportunity to express their
positions or objections relative to the proposed ordinance.
Q – How is the amount of special levy fixed?
A – The special levy authorized herein shall be apportioned, computed, and assessed according to the assessed
valuation of the lands affected as shown by the books of the assessor concerned, or its current assessed value
as fixed by said assessor if the property does not appear of record in his books. Upon the effectivity of the
ordinance imposing special levy, the assessor concerned shall forthwith proceed to determine the annual
amount of special levy assessed against each parcel of land comprised within the area especially benefited and
shall send to each landowner a written notice thereof by mail, personal service or publication in appropriate
cases.
Q – What is the remedy of a taxpayer who disagrees with the special levy?
A – Any owner of real property affected by a special levy or any person having a legal interest therein may,
upon receipt of the written notice of assessment of the special levy may file a protest with the Office of the
treasurer. If the protest is denied, the taxpayer may appeal the assessment to the proper courts.
Q – Is the Sanggunian obliged to establish a uniform percentage of lands subject to the special levy?
A – No. The sanggunian concerned shall not be obliged, in the apportionment and computation of the special
levy, to establish a uniform percentage of all lands subject to the payment of the tax for the entire district, but
it may fix different rates for different parts or sections thereof, depending on whether such land is more or less
benefited by proposed work.
Special Levy for Special Education Fund (SEF)
Q – What is the levy on Special Education Fund?
A – It is the authority of a province, or city or municipality within Metro Manila to levy and collect an annual
tax of one percent (1%) on the assessed value of real property which shall be in addition to the basic real
property tax. The proceeds thereof shall exclusively accrue to the Special Education Fund (SEF) created under
RA No. 5447.
Exemption from Real Property Tax
Q – Which real properties are exempted from the Real Property Tax?
A – The following are exempted from the real property taxes:
(1) Those owned by the Republic of the Philippines or any of its political subdivisions except when beneficial
use is granted for a consideration or to a taxable person.
(2) Charitable institutions, churches, parsonages, or convents appurtenant thereto, mosques, non-profit or
religious cemeteries, and all lands, buildings, and improvements actually, directly and exclusively used for
religious, charitable, or educational purposes.
(3) Machinery and equipment actually, directly and exclusively used by local water utilities and GOCCs
engaged in the supply and distribution of water and/or generation and transmission of electric power.
(4) Real property owned by duly registered Cooperatives as provided for under Republic Act No. 6938
(Cooperative Code of the Philippines).
(5) Machinery and equipment used for Pollution control and Environmental protection.
Q – What are Requirements for RPT Exemption?
A – The requirements are as follows:
(1) Documentary evidence such as affidavits, by-laws, contract, articles of incorporation;
(2) Submitted to the local Assessor
(3) Submitted within 30 days from date of Declaration
Note: Failure to file an application for exemption, will render the property to be listed in Assessment Rolls as
taxable GOCCs
Philippine Ports Authority vs. City of Iloilo (July 14, 2003)
Q – Are GOCCs exempted from RPT?
A – No. GOCCs are NOT covered by the exemption since the exemption only refers to instrumentalities
without personalities distinct from the government.
Mactan Airport Authority vs. Marcos (1996)
In this case, the SC held that the Mactan Airport Authority is a GOCC, not exempt from RPT. Congress in
amending the law specifically deleted GOCCS from the enumeration in Sec 234 (a) of the LGD on the properties
exempt from RPT.
Manila Airport Authority vs. CA (2006)
In this case, the SC held that the Manila Airport Authority falls under the term “instrumentality” outside the
scope of LGC’s local taxing powers under Sec 133 (o) –
“Sec 133 (o), LGC - LGUs not allowed to levy –
(o) taxes/fees/charges of any kind on the national gov’t, its agencies, instrumentalities and LGUs.”
Lung Center of the Phils. vs. Quezon City (June 29, 2004)
Charitable Institutions
Q – Does a charitable institution lose its character and its exemption because it derives income from patients?
A – No. A charitable institution does not lose its character and its exemption simply because it derives income
from paying patients so long as the money received is devoted to the charitable object it was intended to
achieve, and no money inures to the benefit of persons managing the institution.
Q – Are properties of the charitable institution leased to private entities exempt from RPT?
A – No. A property leased to private entities is NOT exempt from RPT, as it is not actually, directly and exclusively
used for charitable purposes. However, portions of the land occupied by the hospital and portions used for its
patients, whether paying or non-paying, are EXEMPT from real property taxes.
Condonation and Reduction of Real Property Tax and Interest
Q – Who has the power to condone or reduce real property tax and interest?
A – The power to condone or reduce real property tax and interest may be exercised by the:
(1) the Sanggunian of any province, city or municipality through an ordinance, in case of a general failure of
crops or substantial decrease in the price of agricultural or agri-based products, or calamity for the succeeding
year or years in the city or municipality affected by the calamity
(2) the President, when public interest so requires, for any year in any province or city or a municipality
within the Metropolitan Manila Area
Note: EO 173 (Oct. 31, 2014)
Exercising the power of the President to condone or reduce RPT and interest under Sec. 277 of the LGC,
President Benigno Simeon Aquino issued EO 173 and ordered the reduction and condonation of real property
taxes as well as interest and penalties assessed on the power generation facilities of IPPs that have BOT contracts
with GOCCs.
ADMINISTRATION OF REAL PROPERTY TAX
Declaration of Real Property

Q – Who may declare the value of the real property for RPT purposes?
A – The value of the real property may be made by the following:
(a) Declaration by the Owner or Administrator
(1) Prepare a sworn statement declaring the true value of the property which shall be the current and
fair market value of the property.
(2) It must contain a sufficient description of the property to enable the assessor or his deputy to
identify the same for assessment purposes
(3) The declaration must be filed with the assessor once every three (3) years during the period from
January 1 to June 30.
(b) Declaration by Any Person
Acquiring Real Property or Making Improvements
Thereon
The sworn statement declaring the true value of the property must be filed to the provincial, city or
municipal assessor within sixty (60) days after the acquisition or upon completion or occupancy of the
improvement, whichever comes earlier.
(c) Declaration by the Provincial or City or Municipal Assessor
When the person required to file the sworn declaration refuses or fails to make such declaration, the
provincial, city or municipal assessor shall declare the property in the name of the defaulting owner.
Notice of Transfer of Real Property
Q – What is the duty of a person transferring ownership over a real property to another?
A – Any person who shall transfer real property ownership to another shall notify the provincial, city or municipal
assessor within sixty (60) days from the date of such transfer.
Q – What does the notification include?
A – The notification shall include the following information:
(a) the mode of transfer,

(b) the description of the property transferred, and
(c) the name and address of the transferee
Listing of Real Property in the Assessment Rolls
Q – How are real properties listed in the Assessment Rolls?
A – The LGC requires the local assessor to maintain an assessment roll wherein all real property, whether taxable
or exempt, located within the territorial jurisdiction of the LGU, are listed as follows:
(a) Real property in general: shall be listed, valued and assessed in the name of the owner or administrator, or
anyone having legal interest in the property.
(b) For undivided real property: it may be listed in the name of the estate or of the heirs and devisees, or in the
name of one or more co-owners.
(c) For real property of a corporation, partnership or association: listed in the same manner as an individual.
(d) For real property owned by the Republic of the Philippines, its instrumentalities, political subdivision, the
beneficial use has been granted to a taxable person: It shall be listed in the name of the possessor, grantee or
of the public entity if such property has been acquired or held for resale or lease.
Appraisal and Valuation of Real Properties:
Q – How is land appraised and valuated?
A – Land is appraised and valuated as follows:
(1) The assessor of the province, city or municipality or his deputy may summon the owners or persons having
legal interest therein and witnesses, administer oaths, and take deposition concerning the property, its
ownership, amount, nature, and value.
(2) Before any general revision of property assessment is made, there shall be prepared a schedule of FMV by
the provincial, city or municipal assessors; which shall be published in a newspaper of general circulation or in
the absence thereof, shall be posted in the provincial capitol, city or municipal hall and in two other conspicuous
public places therein.
Q – How are lands classified?
A – Lands are classified as follows:
(1) Residential
(2) Agricultural
(3) Commercial
(4) Industrial
(5) Mineral
(6) Timberland
(7) Special – all lands, buildings and other improvements actually, directly and exclusively used for hospitals,
cultural, or scientific purposes, and those owned and used by local water districts, and GOCCs rendering
essential public services in the supply and distribution of water and/or generation and transmission of electric
power
Q – How are machineries appraised and assessed?
A – Machineries are assessed as follows:
Brand New The FMV is the acquisition cost.
If the machinery is imported, the acquisition cost includes freight, insurance, bank and
other charges, brokerage, arrastre and handling, duties and taxes, plus cost of inland
transportation, handling, and installation charges at the present site.
All Other Cases FMV is determined by dividing the remaining economic life of the machinery by its
estimated economic life and multiplied by the replacement/reproduction cost.
Depreciation Rate – not exceeding five percent (5%) of its original cost or replacement cost, for each
Allowance year of use.
The remaining value for all kinds of machinery shall be fixed at not less than twenty
percent (20%) of such original, replacement or reproduction cost for so long as the
machinery is useful and in operation.
Assessment of Real Property:
Establishment of Assessment Levels –
Q – What is an “assessment level”?
A – ”Assessment Level” is the percentage applied to the fair market value to determine the taxable value of the
property. Assessment levels shall be fixed by ordinances of the sanggunian at rates not exceeding those
prescribed in Sec. 218, LGC.
General revisions of assessments and property classification –
Q – How frequent are revisions on real property assessments made?
A – The local assessor shall undertake a general revision of real property assessments every three (3) years.
Date of effectivity of assessment or reassessment –
Q – What is the date of effectivity of assessment or reassessment?
st
A – All assessments or reassessments made after the first (1 ) day of January of any year shall take effect on
st
the first (1 ) day of January of the succeeding year.
Exceptions: Reassessments due to –
(1) partial or total destruction;
(2) major change in actual use;
(3) great and sudden inflation or deflation of real property values;
(4) gross illegality of the assessment when made; or
(5) any other abnormal cause
shall be made within ninety (90) days from the date of any cause and shall take effect at the beginning of the
quarter next following the reassessment.
Assessment of Property Subject to Back Taxes
Q – How are real properties subject to back taxes assessed?

A – Real property declared for the first time shall be assessed for taxes for the period during which it would
have been liable but in no case for more than ten (10) years prior to the date of initial assessment.
Notification of New or Revised Assessment
Q – What are the requirements for new or revised assessments to be valid?
A – When real property is assessed for the first time or when an existing assessment is increased or decreased,
the local assessor shall within thirty (30) days give written notice of the new or revised assessment to the person
in whose name the property is being declared.
Notice may be given personally or by registered mail or through the assistance of the Punong Barangay to the
last known address of the person to be served.
Summary: Collection of Real Property Tax
Date of Accrual Real property tax for any year shall accrue on the first day of January.
Notice for Collection st
On or before the 31 of January or on any date prescribed, the local treasurer shall
post the notice of the dates when the tax may be paid without interest at a
conspicuous and publicly accessible place at the city or municipal hall.
The notice shall also be published in a newspaper of general circulation in the
locality once a week for two (2) consecutive weeks.
Prescriptive Periods Within five (5) years from the date they become due
for Collection Within ten (10) years from discovery of fraud, in case there is fraud or intent to
evade
Instances for (1) Local treasurer is legally prevented to collect tax.
Suspension of (2) The owner or property requests for reinvestigation and writes a waiver before
Prescriptive Period expiration of period to collect.
(3) The owner of property is out of the country or cannot be located
Collecting Authority The local treasurer.
He may deputize the barangay treasurer to collect all taxes
upon filing of a bond.
REMEDIES OF LGUS FOR COLLECTION OF REAL PROPERTY TAX
1. Administrative
Remedies
Q – What are the administrative remedies available to the LGUs in the collection of RPTs?
A – The LGUs’ administrative remedies in the collection of RPTs are as follows:
a. Local Government’s Lien
The basic real property tax shall constitute a lien on the property subject to tax, superior to all liens, charges or
encumbrances in favor of any person, irrespective of the owner or possessor thereof, enforceable by
administrative or judicial action and may only be extinguished upon payment of the tax and the related interests
and expenses.
b. Levy on real properties
Upon the failure to pay the tax when due, the local treasurer shall issue a warrant levying the real property
subject to tax. The warrant shall include a duly authenticated certificate showing the name of the owner or
person having legal interest therein, description of the property, amount of the tax due and interest thereon.
Procedural Requirements:
(1) Warrant must be mailed or served to owner or person having legal interest in the property;
(2) Written notice of levy must be mailed or served to the assessor and the Register of Deeds where the
property is located; and
(3) The Register of Deeds must annotate the levy on the tax declaration and certificate of title.
NOTE: Failure of the local Treasurer to issue or execute the warrant of levy within one year from the time the
tax becomes delinquent or within thirty days from the date of the issuance thereof shall be a ground for his
dismissal from service.
c. Purchase by LGU for Want of Bidder
When Available (1) There is no bidder; or
(2) The highest bid is for an amount insufficient to pay the real property tax and the
related interest and costs of sale
Duty of the The local treasurer conducting the sale shall purchase the property in behalf of the LGU
Local Treasurer to satisfy the claim and within two (2) years thereafter shall make a report of his
 proceedings.
Redemption Within one (1) year from the date of forfeiture
Period
2. Judicial
Remedy
The LGU may also enforce the collection by civil action in any court of competent jurisdiction.
Note: No criminal action is available to LGus in enforcing payment of RPTs.
Prescriptive Period for Collection of RPT
Q – What are the periods for the collection of unpaid RPTs?
A – The civil action for collection must be filed by local treasurer 5 years from the date the real property tax
become due. However, in case of fraud or intent to evade tax the assessment must be made within 10 years
from discovery of fraud or intent to evade payment.
TAXPAYER’S REMEDIES
1. Administrative Remedies
(a) Appeal of the Assessor’s Property Assessments to the LBAA
Any owner or person having legal interest in the property who is 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 Board of Assessment Appeals of the provincial or city by filing
a petition under oath in the form prescribed for the purpose, together with copies of the tax declarations and
such affidavits or documents submitted in support of the appeal.

Administrative and Judicial Procedure:
(1) Within 60 days from the date of receipt of the written notice of assessment, the TP must file a petition
under oath before the Local Board of Assessment Appeals (LBAA)
Note: Copies of tax declarations and other affidavits or documents must be submitted
(2) The LBAA shall decide the appeal within 120 days from the date of receipt of such appeal

Fels Energy v. Province of Batangas (Feb. 16, 2007)
Q – What is the last action of the local assessor that will give the owner of the real property the right
to appeal to the LBAA?
A – Under Section 226 of R.A. No 7160, the last action of the local assessor on a particular assessment
shall be the notice of assessment; it is this last action which gives the owner of the property the right
to appeal to the LBAA. The procedure likewise does not permit the property owner the remedy of
filing a motion for reconsideration before the local assessor.
Victorias Milling v. CTA (Mar. 13, 1968)
Q – What is the effect of the owner’s failure to appeal the assessment made by the local assessor?
A – The failure to appeal within the statutory period renders the assessment final and unappealable.
(3) Within 30 days from receipt of the decision of LBAA, the owner may appeal to the Central Board of
Assessment Appeals (CBAA)

(4) If the CBAA denies the appeal, the TP must appeal to the CTA En Banc through a petition for review
within 30 days from the receipt of the decision of CBAA
(5) If the CTA En Banc denies the petition, the TP must appeal to the SC within fifteen (15) days from receipt
of decision of the CTA En Banc
Effect of Appeal on the Payment of RPT
Q – What is the effect of the appeal on the assessments on the payment of the RPT?
A – Appeal on assessments of real property shall NOT SUSPEND the collection of the corresponding realty
taxes on the property involved as assessed by the provincial or city assessor without prejudice to the
subsequent readjustment depending upon the final outcome of the appeal.
(b) Protest on Collection of Real Property Tax
Administrative and Judicial Procedure:
(1) Pay under protest the RPT and file a written protest with local treasurer
within 30 days from payment
 of the tax.
Meralco v. Nelia Barlis (G.R. No. 114231, May 18, 2001):
Q – May the trial court issue a writ of prohibition to set aside a warrant of garnishment without the TP
paying under protest?
A – No. The trial court has no jurisdiction to issue a writ of prohibition which seeks to set aside the
warrant of garnishment over petitioner’s bank deposit in satisfaction of real property taxes without
paying first under protest the tax assessed and without exhausting available administrative remedies.
(2) The local treasurer shall decide the protest within 60 days from receipt of the payment under protest.
(3) If the local treasurer denies the protest or fails to act within 60 days, the TP must appeal to the LBAA
within 60 days from the date of receipt of denial of protest or upon lapse of 60 days to decide –
(a) By filing a petition under oath in the form prescribed for the purpose
(b) Copies of tax declarations and other affidavits or documents must be submitted
(4) The LBAA shall decide the appeal within 120 days from the date of receipt of such appeal
(5) If the LBAA denies the appeal, the TP must appeal to the CBAA within 30 days from the receipt of the
decision of LBAA
(6) If the CBAA denies the appeal, the TP must appeal to the CTA En Banc through a petition for review
within 30 days from the receipt of the decision of CBAA
(7) If the CTA En Banc denies the petition, the TP must appeal to the SC within fifteen (15) days from receipt
of decision of the CTA En Banc
2. Judicial
Remedy
Q – What are other judicial remedies available to the TP?
A – The taxpayer may also avail of the following judicial remedies:
(1) Question the legality of a tax ordinance
(a) Any question on the constitutionality or legality of a tax ordinance may be raised on appeal within thirty
(30) days from effectivity to the Secretary of Justice who shall render a decision within sixty (60) days from
the date of receipt of the appeal.
(b) The appeal shall not have the effect of suspending the effectivity of the tax ordinance and the accrual
and payment of the tax.
(c) Within thirty (30) days after receipt of the decision or the lapse of the 60-day period without the
Secretary of Justice acting upon the appeal, the aggrieved party may file appropriate proceedings with a
court of competent jurisdiction.
(2) Assail the validity of a tax sale before the courts
No court shall entertain any action assailing the validity of any sale at public auction until the taxpayer shall
have deposited with the court the amount for which the real property was sold, together with interest of
two percent (2%) per month from the date of sale to the time of the institution of the action.