Bureau of Local Government Finance Opinion

January 26, 1998 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 3rd Indorsement Respectfully returned, thru ICO-Regional Director for Local Government Finance, Department of Finance, Region VII, 3rd Floor, Cebu Kang-Ha Foundation Building, corner Lapu-Lapu and Juan Luna Streets, Cebu City, to the City Treasurer, same city, his herein 1st indorsement of May 29, 1997, requesting comments and/or recommendations relative to the provisions of Sections 270 and 283 of the Local Government Code of 1991 (RA 7160). The request is prompted by a taxpayer in that city who is hesitant to pay his real property taxes for the years 1989 and 1990 claiming that the right of the city to demand payment of taxes had already prescribed, invoking Section 270 of R.A. 7160 and, that PD 464, as amended, was already repealed and rendered of no force and effect, pursuant to Section 534 of the same code. In this connection, it is informed that taxes accruing before the effectivity of the Local Government Code of 1991 on January 1, 1992, such as the case at hand (realty taxes for 1989 and 1990) shall be subject to the provisions of PD 464, as amended, the law then in force. This rule is explicitly provided for under Section 283 of R.A. 7160 aforecited. Be further informed that PD 464 does not provide any prescriptive period for the payment of real property taxes, unlike Section 270 of RA 7160 which said taxpayer is trying to invoke. Considering that the recent law (RA 7160) may not be given a retroactive effect because tax laws in particular must always be prospective in application, the herein claim of the taxpayer in that city may not be given merit or favorable consideration. This view has been expressed and clarified in this Bureau's 2nd indorsement dated October 16, 1997, addressed to the Provincial Treasurer of Bataan, dealing on similar subject matter, copy attached. DHATcE Be guided accordingly. (SGD.) LORINDA M. CARLOS Executive Director