Bureau of Local Government Finance Opinion

March 23, 2012 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Ms. Candida G. Lawis City Assessor Antipolo City Madam : This has reference to your letter dated November 10, 2011, seeking opinion from this Bureau as to the proper action that must be taken by that office pertaining to the request for the cancellation of memorandum on tax declaration nos. AC-005-03800, AC-005-07310, AC-005-03806, AC-005-03809, AC-03808, AC-005-04417, AC-005-4419, AC-005-04418, AC-005-07847, AC-005-07848, AC-005-03811, AA-005-04725, and AA-005-04704, and the cancellation of Tax Declaration issued to Josephine Morilla, pertinent facts of which are stated in your letter. aDSTIC Section 201 of the Local Government Code (LGC) of 1991 provides that: "Section 201. Appraisal of Real Property. All real property, whether taxable or exempt, shall be appraised at the current and fair market value prevailing in the locality where the property is situated. The department of Finance shall promulgate the necessary rules and regulations for the classification, appraisal, and assessment of real property pursuant to the provision of this code. " (underscoring supplied) Pursuant to the aforequoted provision of the local government code, the Manual on Real Property Appraisal and Assessment Operations (MRPAAO), was issued by the Department of Finance (DoF) on October 1, 2004, through Local Assessment Regulation No. 1-04, Section 3 (B) Chapter V (Assessment of Real Property) of the said Manual provides: HADTEC "B. Cancellation of assessments in case several assessments are made on one property. "1. In case several assessments are made on one and the same property, the duty of the assessor is to cancel all the assessments, except the one properly made; However, if any assessee or his representative shall object to the cancellation of the assessment made in his name, such assessment shall not be cancelled but the fact shall be noted on the Field Appraisal and Assessment Sheet (FAAS), tax declaration, assessment rolls and other property books of records. Preference, however, shall be given to the assessment of the person who has the best title to the property, or in default, thereof, of the person who has possession of the property. "2. When two persons have declared in their names the same property or a portion thereof and were issued corresponding tax declarations, a notation shall be made on the face of each tax declaration and the corresponding FAAS's the fact that the property or part thereof is also declared in the name of the other person. HADTEC "a. Thus, if Mr. A. declared a property which is also declared in the name of Mr. B. there shall be noted on the face of the Field appraisal and assessment sheet and tax declaration of Mr. A. the following: "Property is also declared in the name of Mr. B. under Tax Declaration No. _______". "A similar notation shall also be made on the face of the Tax Declaration of Mr. B. as "Property is also declared in the name of Mr. A. under Tax Declaration No. ______". "b. If Mr. B. declared only a portion of the land declared in the name of Mr. A., there shall be noted on the face of the FAAS and corresponding tax declaration of the latter, "Portion of (hectares or square meters) is also declared in the name of Mr. B. under tax declaration No. _______", shall be made on the face of the FAAS and tax Declaration of Mr. B. Those notations shall also be made on the assessment rolls and other records where both tax declarations are recorded. Cancellation of either tax declaration under the first example shall be made only upon written request of the declared owners. If one party presents his certificate of title or evidence of his ownership to property, the provincial, city or municipal assessor shall not immediately cancel the declaration of the other party, in which case, the assessor shall notify the latter of the request of the other declarant. If he refuses, the tax declaration shall not be cancelled. "c. If under the second example, Mr. B., the declared owner of the small area, requested the cancellation of his tax declaration, the assessor shall cancel said tax declaration. At the same time, the notation "Portion of ____ hectares or square meters is also declared in the name of Mr. B.," on the face of the tax declaration issued in the name of Mr. A. shall be deleted. A revised tax declaration shall then be issued. "d. If neither party consents to the cancellation of his tax declaration, the tax declaration of the party with the best title, or the party in possession of the property, shall serve as the principal tax declaration. In case of the second example, the tax declaration covering the whole property shall serve as the principal record." HADTEC The provision aforequoted lays down the rules pertaining to the cancellation of the memorandum on tax declaration as well as the cancellation of the tax declaration . Further, Local Assessment Opinion No. 1-81 of the then Ministry of Finance dated February 19, 1982 states that: "It must be remembered that issuance of the "Tax Declaration" is for taxation purposes only. The "Tax Declaration" DOES NOT and CANNOT, alone by itself, confer any legal title of ownership in fee simple to the declarant/assessee over the properties covered thereby unlike the "Certificate of Title" issued by the Register of Deeds in accordance with the Torrens System prevailing in our jurisdiction with the enactment of Act 496, otherwise known as the "Land Registration Act" which is the very "evidence of ownership" itself. The primary function of the "Tax Declaration" is to serve as documentary " evidence of taxability " of real property covered thereby. Issuance of the tax declaration by the Assessor concerned to the proper party , in conformity with the provision of the governing Law on realty taxation, i.e., previously, C.A. 470. Otherwise known as the Assessment Law and presently, by the Real Property Tax Code, PD 464, as amended, which became effective on June 1, 1974, and/or in accordance with the legal pronouncement of the proper courts of Justice is a mere ministerial act as these officers have no power to adjudicate, his office being NEITHER a court of justice NOR a property registry "but simply an office for collection of land tax." ( Carao vs. Jose Riosa Boyco , 29 PHIL. 437.) Questions on "ownership over lands" are ventilated in, and finally resolved by, the proper courts of justice, where the adverse claimants may later resort to, as when the proceedings in court for the "titling" of subject properties is had." In view thereof, the request made by the law offices of Malabanan and Rana may be given due course if the same would conform to the following requirements as provided for under Section 3 (B) no. 2 (b), par. 3, of the Manual on Real Property Appraisal and Assessment Operations: 1st Written request for the cancellation must be made by the declared owner; 2nd The declared owner must present his certificate of title or evidence of his ownership to the property; 3rd Upon presentation of the evidence, the city assessor shall notify the other declared owner (Josephine Morilla) of the said request. If upon notification, Ms. Morilla refuses, then the tax declaration issued to her shall not be cancelled. For your information and guidance. Very truly yours, (SGD.) SALVADOR M. DEL CASTILLO OIC-Executive Director