Bureau of Local Government Finance Opinion

June 18, 2002 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION The Deputy Provincial and Municipal Assessor Makilala, Cotabato S i r : This refers to your letter dated February 20, 2002, in effect requesting opinion on the applicability of Section 221 of R.A. No. 7160, also known as the Local Government Code of 1991. It is your contention that dismantled real properties are not among those specifically mentioned in the abovementioned Section 221 of R.A. No. 7160, therefore, notice of cancellation does not fall within any of the enumerated causes. Apparently, and as represented in your letter, a certain dilapidated building was totally dismantled last January, 2001, and was dropped by that Office from the assessment roll of real properties; and consequently the payment of real property taxes due thereon has likewise ceased effective when the building was dismantled because it occurred during the first month of the quarter of CY 2001. In this connection, attention is invited to Section 221 of the said Code, which is quoted hereunder: "SEC. 221. Date of Effectivity of Assessment or Reassessment . All assessment or reassessment made after the first (1st) day of January of any year shall take effect on the first (1st) day of January of the succeeding year. Provided, however, that the reassessment of real property due to its partial or total destruction , or to a major change in its actual use, or to any great and sudden inflation or deflation of real property values, or to the gross illegality of the assessment when made or to any other abnormal cause, shall be made within ninety (90) days from the date any such cause or causes occurred, and shall take effect at the beginning of the quarter next following the reassessment ." (Emphasis supplied) Evidently, reassessment of real properties due to its total destruction shall be made within ninety (90) days from the date any such cause or causes occurred, and shall take effect at the beginning of the quarter following the reassessment. On the other hand, and for further clarification on the date of effectivity of assessment and reassessment, attention is also invited to Section 5(a) and (b) of Local Assessment Regulations No. 1-92 dated October 6, 1992, which provides in part, as follows: "a. Revision of Assessment "1. An assessment revised this year 1992 takes effect the following year 1993; that in 1993 takes effect in 1994. "b. Total or partial destruction of real property refers to the destruction on individual property or property within an area affected but not on the basis of a general revision . "1. Cancellation or reduction of assessments caused by total or partial destruction of property takes effect on the first day of the quarter following the quarter in which the total or partial destruction occurred. Thus, if property was totally or partially destroyed on July 5, 1990, its assessment shall be cancelled or reduced effective October 1, 1990 (fourth quarter) . . . "2. When the property is totally destroyed, its assessment shall be cancelled by Notice of Cancellation of Assessments ; when property is partly destroyed, a revised tax declaration shall be prepared and issued to cancel the tax declaration covering the original assessment. On the reverse side of the revised tax declaration, state the quarter and year instead of year only as the effectivity of the tax." (Emphasis ours) Based on the foregoing, it is clear therefore, that: 1. the cancellation or reduction of assessment as a result of general revision of real property assessment takes effect the year following the conduct of the said general revision; and 2. the cancellation or reduction of assessment as a result of a total or partial destruction on individual real property that causes the reassessment of the same, takes effect the quarter following the said reassessment. In view hereof, and considering that the cancellation of assessment of the subject real property (building) was a result of its total destruction in January 2001, the said cancellation shall take effect on the first (1st) day of April, 2001, the quarter following the quarter in which the total destruction occurred, as provided under Section 221 of the Local Government Code of 1991, and as further clarified under Section 5(a) and (b) of Local Assessment Regulations No. 1-92. aHIDAE We trust that we have enlightened you on the matter. Very truly yours, (SGD.) JUANITA D. AMATONG Undersecretary and Officer-in-Charge, BLGF