Bureau of Local Government Finance Opinion

October 7, 2002 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully referred, thru the Regional Director for Local Government Finance, Department of Finance, Region XI, Helen K. Lee Bldg., corner J. Luna and J. dela Cruz Streets, Davao City, to the Provincial Assessor, Mati, Davao Oriental. This refers to the appeal for reconsideration of Atty. David C. Jacob of Rm. 203, Villa Abrille Bldg., R. Magsaysay Ave., same city, in behalf of his clients, certain Jonab B. Basalo, et al., relative to the opinion issued by that Office, as embodied under the attached letter dated July 23, 2001, which reads, in part, as follows: "Based on the foregoing premises, it is the considered view of this Office, that unless the Appeal from the Decision in Civil Case No. 1901 filed by the Plaintiffs, be decided by the appellate court in your (party-defendants') favor and unless the same decision becomes final and executory, it would be premature on the part of the concerned Assessor to act on your request for the transfer of Tax Declaration from the name of Mr. Luis Cruz to Agustina Vda. de Diola, et al." The alleged denial by both the Municipal Assessor, Lupon, Davao Oriental, and the Provincial Assessor, same province, on the appellant's (Jonab B. Basalo, et al.) request for the transfer of the subject tax declaration from the name of Mr. Luis Cruz to Agustina Vda. de Diola, et al, prompted Atty. Jacob to seek this Bureau's reconsideration of the herein opinion of the Regional Director of Region XI. DSAICa A perusal of the within set of papers reveals the following information, as follows: 1. The subject tax declaration pertains to a certain real property (land), embraced by Original Certificate of Title (OCT) No. (P-13343) P-34477, located in Corporacion, Lupon, Davao Oriental, with an area of 28.0795 has., more or less, and declared in the name of Mr. Luis Cruz; 2. The said property was acquired by the Government under R.A. No. 6657, otherwise known as " An Act Instituting a Comprehensive Agrarian Reform Program to Promote Social Justice and Industrialization, Providing the Mechanism for its Implementation, and for Other Purposes ." And was issued Transfer Certificate of Title (TCT) No. 2436 in the name of the "Republic of the Philippines" on April 25, 1997 upon the letter-request dated April 24, 1997 of the Provincial Agrarian Reform Officer, Department of Agrarian Reform Provincial Agrarian Reform Office (DAR-PARO), Mati, Davao Oriental to the Register of Deeds; 3. The Landbank of the Philippines (LBP) has issued a Certification on April 23, 1997, that just compensation has already been paid to Mr. Cruz; 4. The said property was subsequently sub-divided to Jonab B. Basalo, et al. on June 17, 1997 being the awardees-beneficiaries of CARP and was issued ten (10) TCT-Certificate of Land Ownership Awards (CLOA); 5. A Certification was also issued on June 27, 2001 by the Office of the Municipal Assessor, Lupon, Davao Oriental, that the subject real property has no real property tax delinquency; 6. A Civil Case (No. 1901) involving the said property was filed by a certain Felicidad Bongar, Lorenzo Go and Lolita Go (Plaintiffs) against Luis Cruz and Rosita Golian (Defendants) for " Reconveyance, Declaration or Nullity of Title, Damages with Preliminary Injunction and Restraining Order ," and was dismissed on October 31, 2000 by the Regional Trial Court (RTC) Branch 32, Davao Oriental; and 7. To date, there is a pending Appeal lodged by the abovementioned Plaintiffs. On the other hand, the following arguments are submitted by Atty. Jacob for reconsideration, to wit: 1. The TCT-CLOA corresponding to the subject property was already issued in the name of his clients (Jonab Basalo, et al.), and unless such titles "are declared null and void by a competent court, such titles are valid until annulled ;" 2. That the said Appeal "does not bar the transfer of tax declaration" considering the issuance of the said TCT-CLOA "unless an injunction has been issued by the appellate court;" 3. That since evidence of ownership is now in the name of his clients, "there is no reason why the tax declaration cannot be transferred;" 4. That "the transfer of tax declaration being a part of CARP implementation as far as the transfer of ownership documents is concerned, cannot be restrained even by the court as provided under Section 55 of R.A. No. 6657, hence, it follows that the denial is bereft of legal basis;" and 5. The refusal for the transfer of the subject tax declaration pending the Appeal would cause the non-payment of the real property taxes due on the said property. In this connection, attention is invited to the abovementioned Section 55 of R.A. No. 6657, which provides as follows: "SEC. 55. No Restraining Order or Preliminary Injunction . No court in the Philippines shall have jurisdiction to issue any restraining order or writ of preliminary injunction against the PARC or any of its duly authorized or designated agencies in any case, dispute or controversy arising from, necessary to, or in connection with the application, implementation, enforcement, or interpretation of this Act and other pertinent laws on agrarian reform." Evidently, the implementation of CARP is mandatory, and cannot be held in abeyance by any court of competent jurisdiction arising from any dispute or controversy. IDTSaC It is clear that the subject property was already issued a TCT in the name of the Republic of the Philippines and after which, TCT-CLOA in the name of Jonab B. Basalo, et al. It may be emphasized, in this regard, that the issuance of tax declaration by the assessors concerned to the proper party, in conformity with the provisions of the governing law on realty taxation, is a mere ministerial act , and 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 the land tax. ( Carmo vs . Jose Ricon Bayco , 29 Phil. 437). Questions on ownership over lands are ventilated in, and finally resolved by, the proper court of justice, where the adverse claimants may later resort to, as when the proceedings in Court for "titling" of subject properties is had. (Local Assessment Opinion No. 1-81 dated February 19, 1981, of the Department of Finance) In view hereof, attention is also invited to Section 205(d) of R.A. No. 7160, otherwise known as the Local Government Code of 1991, which is quoted hereunder: "SEC. 205. Listing of Real Property in the Assessment Rolls . . . . "xxx xxx xxx. "(d) Real property owned by the Republic of the Philippines , its instrumentalities and political subdivisions, the beneficial use of which has been granted, for consideration or otherwise, to a taxable person, shall be listed, valued and assessed in the name of the possessor, grantee , or of the public entity if such property has been acquired or held for resale or lease." (Emphasis supplied) Evidently, real properties owned by the Republic of the Philippines, the beneficial use of which has been granted, for consideration or otherwise, to a taxable person, like the beneficiaries-awardees of CARP, shall be listed, valued and assessed in the name of the said beneficiaries-awardees. In view of the foregoing, and considering the existing TCT-CLOAs, the said Provincial Assessor of Davao Oriental is hereby instructed to issue the corresponding tax declaration in the names of Agustina Vda. de Diola, et al., thereby canceling the tax declaration in the name of Luis Cruz with the following "annotation" duly indicated thereon, to wit: "Transferred on the basis of TCT-CLOAs issued by the Registry of Deeds for the Province of Davao Oriental on April 29, 1998 in favor of Agustina Vda. de Diola, et al." Be guided accordingly. (SGD.) MA. PRESENTACION R. MONTESA Executive Director