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 January 25, 2012 seeking opinion from this Bureau as to the proper action that must be taken by that office pertaining to the request of Mr. Luisito L. Doblada for the issuance of tax declaration and payment of real property tax for his properties located at Barrio San Jose, Antipolo City. It is informed that your office is in a quandary on whether to grant the said request taking into consideration the decision rendered by the Regional Trial Court, which states that the assessors duty in issuing tax declaration is purely ministerial as against the review and recommendation of the Office of the Ombudsman, in OMB-C-A-04-0241-E, Pacita Herbosa vs. Artemio Cana, et al. wherein respondents Reyes and Caluma were meted the penalty of dismissal from the service, for issuing tax declaration in favor of Ms. Josephine Morilla. aIcDCA Upon perusal of the said Ombudsman recommendation it could be inferred that the respondents in the said case were found guilty of Grave Misconduct, for the following reason: (a) Respondents Reyes and Caluma admitted that they did not require Josephine Morilla to submit the following requirements for land registration: 1. Deed of conveyance (considering that she already presented the certificate of title); 2. Official receipt evidencing payment of transfer tax; 3. Certificate Authorizing Registration, and; 4. Realty tax clearance. (b) The respondents likewise failed to recognize the glaring inconsistencies on the documents submitted by Ms. Morilla. It is your representation that the Supreme Court in the case of Constantino vs. Court of Appeals (G.R. No. 146933, June 8, 2006) states that: "A clear line demarcates a discretionary act from a ministerial one. Thus: The distinction between a ministerial and discretionary act is well delineated. A purely ministerial act or duty is one which an officer or tribunal performs in a given state of facts, in a prescribed manner, in, obedience to the mandate of a legal authority, without regard to or the exercise of his own judgment upon the propriety or impropriety of the act done. If the law imposes a duty upon a public officer and gives him the right to decide how or when the duty shall be performed, such duty is discretionary and not ministerial. The duty is ministerial only when the discharge of the same requires neither the exercise of official discretion or judgment." (underlining supplied) There is no question that the duty of the assessors in issuing tax declaration is purely ministerial, however the same must be in accord with the prescribed manner in issuing the same. Lifted from the official website of Antipolo City is the procedure as well as requirements for the issuance of Tax Declaration, which provides that: "I. ISSUANCE OF DECLARATION OF REAL PROPERTY VALUE (TAX DECLARATION) UNDER NEW OWNER "ABOUT THE SERVICE: Any person who shall transfer real property ownership to another shall notify the City Assessor and submit all necessary documents within sixty (60) days from the date of such transfer. Based on the newly issued title, a subsequent Declaration of Real Property Value (Tax Declaration) under the new owner will be issued. "CLIENT GROUPS: Real property owners, banks, real estate brokers, and subdivision developers "REQUIREMENTS: Photocopies of the following: Transfer Certificate of Title (TCT) Deed of Conveyance (Deed of Absolute Sale, Deed of Donation, Extrajudicial Settlement, etc.) Tax Clearance Certificate/Certificate Authorizing Registration (CAR) from the B.I.R Transfer Tax Receipt Real Property Tax Receipt (current year)" Thus, premises considered, if that office in issuing the said tax declaration acted in accordance with the prescribed manner in obedience to the mandate of a legal authority then that office have no other option but to grant the said request. Attention is likewise invited on Section 3 (B) of the Manual on Real Property Appraisal and Assessment Operations (MRPAAO), issued by the Department of Finance (DoF) on October 1, 2004, through Local Assessment Regulation No. 1-04 which provides that: "B. Cancellation of assessments in case several assessments are made on one property. cESDCa "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. " 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." The provision aforequoted lays down the rules pertaining to the cancellation of the memorandum on the 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. TAaIDH 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." It is informed that the above clarifications in the Manual were made pursuant to Section 33, Title II, Chapter IV of Executive Order no. 292, otherwise known as the Administrative Code of 1987, and Sections 200 and 201 of the Local Government Code of 1991 as implemented under Art. 291 of its Implementing Rules and Regulations. While it is true that the assessor's function in the issuance of Tax Declaration is a ministerial duty, that office is not precluded from exercising the required diligence in accepting the requirements for the issuance of the same. Thus, that office may issue the requested tax declaration if the documents presented by Mr. Luisito L. Doblada suffices the aforequoted requirements for the issuance of the same and that upon the exercise of due diligence, that office have checked the documents as to their genuineness and authenticity. For your information and guidance. Very truly yours, (SGD.) SALVADOR M. DEL CASTILLO OIC-Executive Director