TAXPAYERS REMEDIES (For Real Property Tax)

TAXPAYERS REMEDIES (For Real Property Tax)By: John Michael Gabriel N. Vida2005-08748

Remedies for the RPT payerAssessment by city/municipal treasurerPayment under Protest Appeal to the LBAA > CBAA > Supreme Court (under Rule 65 certiorari)Tax Refund/Credit (if the taxpayer gets a favorable decision)Condonation/Reduction of RPT by either Sanggunian or PresidentRepayment of Excessive Collections

RPT Assessment and CollectionProvincial/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)

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). City/municipal treasurer MAY deputize collection to barangay treasurer, subject to:Barangay treasurer being properly bonded,Bond premium which will be paid by the city/municipality.

PROOF OF EXEMPTIONArt. 297, LGC IRR: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 EXEMPTIONIf the required evidence is not submitted within the period herein prescribed, the property shall be listed as taxable in the assessment roll. If the property shall be proven to be tax exempt, the same shall be dropped from the assessment roll.

RPT Installment PaymentsSec. 250, LGC: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. EX: Special levy where payment date is governed by the ordinance enacted by the Sanggunian concerned.

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

Installment ScheduleThe date for the payment of any other tax imposed under RPT laws without interest shall be prescribed by the sanggunian concerned. 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)?Still pay the RPT but do it under protestNO PAYMENT, NO PROTEST (Sec. 252(a), LGC)File the written protest within 30 days from payment of the tax under protestRPT paid will be held under trust by the LGC treasurer concerned. (Sec. 252(b), LGC)

CMC vs. City of Las PiasDOCTRINE: 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. 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. 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: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:Avail of the remedies as provided for in Chapter 3, Title II, Book II of this Code (Sec. 252(d), LGC)IN OTHER WORDS: Appeal to the Local Board of Assessment Appeals (LBAA)

Local Board of Assessment AppealsAny 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)LBAA shall decide the appeal within one hundred twenty (120) days from the date of receipt of such appeal. (Sec. 229(a), LGC)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 membersArt. 318(a), LGC IRR:The provincial or city board of assessment appeals shall be composed of the following: Registrar of Deeds Chairman Provincial or City Prosecutor Member Provincial or City Engineer Member

Composition of LBAA membersArt. 318(b), LGC IRR:In the case of municipalities within MMA, the municipal board of assessment appeals shall be composed of the following: 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 Prosecutor designated or assigned to the municipality Member Municipal Engineer Member

Central Board of Assessment AppealsStill not happy with the LBAA decision? Appeal to CBAA! (Sec. 229(c), LGC). CBAA is composed of a chairman and two board members.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)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:The chairman and members of the Central Board shall be:Filipino citizens, At least forty (40) years old at the time of their appointment, and Either members of the Bar or Certified Public Accountants for at least ten (10) years immediately preceding their appointment. 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. 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.

There shall also be hearing officers to be appointed by the CBAA, one each for:Luzon - based in ManilaVisayas - based in Cebu CityMindanao - based in Cagayan de Oro CityThey shall serve for a term of six (6) years, without reappointment until their successors shall have been appointed and qualified. The hearing officers shall have the same qualifications as those of the Judges of the Municipal Trial Courts.

Caltex vs. CBAAUnder 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. 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.

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 RPTCovered by Secs. 276-277 of the LGCFor 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. For Sec. 277 this is given by the President of the Philippines, when public interest so requires.

REPAYMENT OF EXCESSIVE COLLECTIONSSec. 253, LGCWhen 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 COLLECTIONSThe 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)