Bureau of Local Government Finance Opinion

November 16, 2000 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully returned to the In-Charge of Office, Provincial Assessor' Office, Iba, Zambales, his within letter dated April 22, 1999 requesting assistance concerning the assessment made in the name of Virgilio B. Dayao on the parcels of land located in San Pablo, Castillejos, that province, to wit: TD's Issued Lot No. Effective 1990 Effective 1994 3439 012-1796A 012-1797A 3440 012-1807A 012-1808A 3441 012-1805A 012-1806A That Office informed that the aforementioned parcels of land are also declared in the name of Golden Farms Multi-Resources, Inc.,(GFMRI) under Tax Declaration Nos. 012-0904, 012-0903 and 012-0902 in favor of Golden Farms Multi Resources, Inc., allegedly owned by the incumbent Provincial Governor of said province, Honorable Vicente P. Magsaysay. In this connection, and considering the apparent want of sufficient and related information in order that the requested assistance may be rendered on the matter, this Bureau directed the conduct of an investigation/ocular inspection of the subject land, which revealed, among others, that: 1. The In-Charge of Office, Provincial Assessor's Office allegedly issued "new" tax declarations over the subject properties (land) in the name of Mr. Virgilio B. Dayao under Tax Declaration Nos. 012-1796A, 012-1807A and 012-1805A, all effective 1990 with annotations "Also declared in the name of Golden Farms Multi Resources, Inc." on the basis of the attached unnumbered OCT Patent Nos. 0371022-95-849, 037104-95-8500 and 037104-95-2496. 2. Lot No. 3439, declared in the name of Golden Farms Multi-Resources, Inc. under Tax Declaration No. 012-0904, effective 1994, with PIN 016-04-012-08-057, was previously declared as follows: Name TD No. Effectivity Remarks Daniel Agustin 1905 1916 Transfer -do- 4740 1921 Revision Edilberto de Peno 7431 1935 Transfer from TDN 4740 Edilberto de Peno 12237 1935 Revision -do- 14653 1937 Revision 17712 1944 Revision -do- 23893 1952 Revision Santiago Dayao 27141 1960 Transfer from TDN 23893 -do- 30982 1969 Revision -do- 1476 1974 Revision -do- 1690 1980 Revision -do- 12-10898 1984 Tax Mapping Magsaysay, Gil Jr. 12-0557 1985 Transfer from TDN 12-10898 -do- 12-0557 1985 Revision Golden Farm Multi- 012-1363 1989 Transfer from TDN 12-0557 Resources, Inc. 3. Lot No. 3440, declared in the name of Golden Farms Multi Resources, Inc. under TD No. 012-0903, effective 1994, with PIN 016-04-012-08-056, was previously declared as follows; Name TD No. Effectivity Remark Santiago Dayao 1692 1980 Revision -do- 012-0607 1984 Tax Mapping Magsaysay, Gil, Jr. 012-1088 1985 Transfer from TDN 012-0607 -do- 012-0556 1985 Revision Golden Farm Multi- 012-1362 1989 Transfer from TDN 012-1362 Resources, Inc. 4. Lot No. 3441, declared in the name of Golden Farms Multi Resources, Inc. under TD No. 012-0902, with PIN 016-04-012-08-055, was previously declared as follows; Name TD NO. Effectivity Remarks Santiago Dayao 27274 1957 New Santiago Dayao 30979 1969 Revision Santiago Dayao 473 1974 Revision Santiago Dayao 1692 1980 Revision Santiago Dayao 012-0606 1984 Tax Mapping Magsaysay, Gil J. 012-1087 1985 Transfer from TDN 012-0606 Magsaysay, Gil J. 012-0555 1985 Revision Golden Farms Multi Resources Inc. 012-1361 1989 Transfer from TDN 012-0555 5. The subject Lots are in the name of Santiago Dayao as claimant in the attached certified xerox copy of the list of claimants issued by the Bureau of Lands: 6. The abovementioned Lot Nos. 3439, 3440 and 3441 were included in the 18 lots indicated in the Deed of Absolute Sale executed by and between Mr. J. Gil Magsaysay and the Golden Farms Multi-Resources, Inc. 7. The attached certified photo copy of the Order: (Approval of Application and Issuance of Patent) reveals that the OIC, PENR Officer of Zambales, confirmed the occupation and cultivation of the lands applied for by Mr. Virgilio B. Dayao over Lot Nos. 3439, 3440 and 3441, respectively. 8. From the attached xerox copies of Original Certificate of Title covering Lot Nos. 3439, 3440 and 3441 only Lot No. 3439 was numbered (Oct. No. P-15477). 9. The attached Certifications, both dated July 27, 1999, issued by the Municipal Treasurer of Castillejos, Zambales, show that real property taxes on the said lots declared under Tax Declaration Nos. 012-0902, 012-0903 and 012-0904 in the name of Golden Farms Multi Resources Inc., have been paid up to the first quarter of 1999. The real property taxes covering the same subject real property under Tax Declaration Nos. 012-1806A, 012-1807A and 012-1808A in the name of Virgilio Dayao, have, likewise, been fully paid. 10. It was also noted that only the tax declarations in the name of Mr. Dayao carried the notation "Also declared in the name of Golden Farms Multi Resources under TD No. -." The documents and informations gathered concerning the subject lots proved that the basis for the issuance of tax declaration in the name of the Golden Farms Multi Resources, Inc. is the previous tax declarations covering the same and the Deed of Absolute Sale executed on April 8, 1988 by and between the then owner of the same properties, Mr. Gil J. Magsaysay, and the Golden Farms Multi Resources, Inc. In the case of Mr. Virgilio B. Dayao, it was noted that the basis of issuance of the tax declarations in his name are the unnumbered Original Certificates of Title under Patent Nos. 037104-95-8497, 037104-95-8500 and 037104-95-8496 issued by the PENRO thereat, with notation "Also declared in the name of Golden Farms Multi Resources under TD No. - ." In this connection, attention is invited to the provision of Section 205 of R.A. No. 7160, otherwise known as the Local Government Code of 1991, which states as follows: "Section 205. Listing of Real Property in the Assessment Rolls . (a) In every province and city, including the municipalities within Metropolitan Manila Area, there shall be prepared and maintained by the provincial, city or municipal assessor an assessment roll wherein shall be listed all real property, whether taxable or exempt, located within the territorial jurisdiction of local government unit concerned. Real property shall be listed, valued and assessed in the name of the owner or administrator, or anyone having legal interest in the property ." (Emphasis supplied) It is clear from the abovequoted provision that all real property, whether taxable or exempt, shall be listed, valued and assessed in the name of the owner or administrator, or anyone having legal interest in the property. Moreover, attention is also invited to the provisions of Article IV(A)(2)(h) of the Manual on Real Property Tax Administration in the Philippines, which in part reads as follows: "2. Powers and duties of Provincial or City Assessors. The provincial or city assessor shall: "xxx xxx xxx "(h) Cancel all of the Assessments, in case several assessments are made, but if any assessee or his representatives 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 tax declaration and assessment rolls and other property books of record. 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." "1. When two persons have declared in their names the same property or a portion thereof and were issued corresponding tax declaration therefor, notation shall invariably be made on the face of each tax declaration the fact that the property or part thereof is also declared in the name of the other person." "xxx xxx xxx Clearly, assessors are required to put notations on tax declarations "when two persons have declared in their names the same property or a portion thereof "for purposes of issuing corresponding tax declarations" therefor. In view thereof, that Office is hereby instructed to indicate on the Tax Declaration of Golden Farms Multi Resources, Inc. (GFMRI), for Lot No. 3439, the same notation, thus: "This property is also declared in the name of Virgilio B. Dayao under TD No. ___, in line with the aforecited provision of ART. IV(A)(2)(h) of the Manual on Real Property Tax Administration in the Philippines. However, considering that only Lot No. 3439 with a Free Patent Entry No. 037104-95-8497, appears to have been duly issued an Original Certificate of Title No. P-15477, that Office is likewise instructed to withhold the issuance/release of the tax declarations for lot Nos. 3440 and 3441, until such time that the original certificate of titles therefor are validly issued. ISEHTa Report of action taken hereon within ten (10) from receipt hereof is requested. (SGD.) BENJAMIN A. GERONIMO Executive Director