Bureau of Local Government Finance Opinion

April 30, 2012 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully returned to the Provincial Treasurer of Cavite thru the Regional Director, Bureau of Local Government Finance, Department of Finance, 3rd Floor Marcelita Building, Calamba City, her herein letter dated April 2, 2012, requesting for clarification if the province is bound by the Certifications issued by the Municipal Treasurer of Ternate, to the effect that the real property tax liabilities for the years 2002-2007, pertaining to certain properties owned by several corporations, have been fully paid. However, as per evaluation by the Provincial Treasurer and the Provincial Assessor, the real property tax liabilities on said properties remain unsettled contrary to the Certifications of the Municipal Treasurer. In this regard, attention is invited to the provisions of Sections 232 and 247 of the Local Government Code of 1991 or R.A. 7160, as follows: "SEC. 232. Power to Levy Real Property Tax. A province or city or a municipality within the Metropolitan Manila Area may levy an annual ad valorem tax on real property such as land, building, machinery, and other improvement not hereinafter specifically exempted." "SEC. 247. Collection of Tax . The collection of the real property tax with interest thereon and related expenses and the enforcement of the remedies provided for in this Title or any applicable laws, shall be the responsibility of the city or municipal treasurer concerned. The city or municipal treasurer may deputize the barangay treasurer to collect all taxes on real property located in the barangay : Provided, That the barangay treasurer is properly bonded for the purpose: Provided, further, That the premium on the bond shall be paid by the city or municipal government concerned." EaTCSA Clearly, the real property tax is a provincial imposition, the collection of which is delegated to the component municipalities through their respective Municipal Treasurers who shall issue official receipts for payments received and recorded in the reports of collections and deposits and in the cash books. Accordingly, the Certifications of full payment issued by the Municipal Treasurer must be supported by the records obtained in her Office, otherwise, the same are considered sham. Hence, do not bind the province. Meanwhile, the delinquent taxes create a lien on the properties upon which the province has the statutory right and obligation to enforce collection through public auction. For proper guidance are the following pertinent provisions of the Local Government Code of 1991: "SEC. 254. Notice of Delinquency in the Payment of the Real Property Tax. (a) When the real property tax or any other tax imposed under this Title becomes delinquent, the provincial, city or municipal treasurer shall immediately cause a notice of the delinquency to be posted at the main entrance of the provincial capitol, or city or municipal hall and in a publicly accessible and conspicuous place in each barangay of the local government unit concerned. . . . . (b) Such notice shall specify the date upon which the tax became delinquent and shall state that personal property may be distrained to effect payment. It shall likewise state that at any time before the distraint of personal property, payment of the tax with surcharges, interests and penalties may be made in accordance with next following Section, and unless the tax, surcharges and penalties are paid before the expiration of the year for which the tax is due, except when the notice of assessment or special levy is contested administratively or judicially pursuant to the provisions of Chapter 3, Title Two, Book II of this code, the delinquent real property will be sold at public auction, and the title to the property will be vested in the purchaser, . . . . ." Be guided accordingly. (SGD.) SALVADOR M. DEL CASTILLO OIC-Executive Director