Bureau of Local Government Finance Opinion

March 15, 2005 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION The OIC-Municipal Assessor Taguig, Metro Manila S i r : This pertains to the request of Mr. Jose K. Milanes, CPA, in behalf of the Philippine Timber Valley Trading Corporation (PTVTC) to allow them to pay real property taxes due on their real properties (land) located in Ibayo-Tipas, Taguig, for the 1st and 2nd quarters of 2002, based on Tax Declaration Nos. EB-017-00004 to EB-017-00007. You contend that the abovementioned tax declarations of PTVTC cannot be made as basis for payment of real property tax due, since there was an erroneous application of the Schedule of Market Values (SMV) of Taguig; and the omission of the "excess height of 15% of Base Unit Value in excess of 4.5 meters for the specific assessment." On the other hand, Mr. Milanes submitted that Tax Declaration Nos. EB-017-00004 to EB-017-00007 were issued by that Office on June 29, 2000 and real property taxes due thereon were religiously paid by PTVTC on a quarterly basis, the last payment of which was on the last quarter of 2001. However, sometime in November, 2001, PTVTC allegedly received Tax Declaration Nos. EB-017-00030 to EB-017-00033 all effective 2001, postmarked October 26, 2001, containing an increased Assessed Value of P163,538 or an increase of 80%. He contends that these Tax Declarations were not validly issued, and should be nullified. This Bureau, in its letter dated July 29, 2003, copy enclosed, treating on a similar subject matter, made the following opinion: "xxx xxx xxx. "The issue to be resolved is whether the said discrepancies can be rectified in accordance with the provisions of Section 220 and 221 of the Code, which provides as follows: "SEC. 220. Valuation of Real Property . In cases where (a) real property is declared and listed for taxation purposes for the first time; (b) there is ongoing general revision of property classification and assessment; (c) a request is made by the person in whose name the property is declared, the provincial, city or municipal assessor or his duly authorized deputy shall, in accordance with the provisions of this Chapter, make classification, appraisal and assessment of the real property listed and described in the declaration irrespective of any previous assessment or taxpayer's valuation thereon: Provided, however. That the assessment of real property shall not be increased oftener than once every three (3) years except in case of new improvements substantially increasing the value of said property or of any change in its actual use . (Underlining supplied) "SEC. 221. Date of Effectivity of Assessment or Reassessment . All assessments or re-assessments 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 sudden inflation or deflation of real property values, or to the gross illegality of the assessment when made or 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 . (Underscoring ours) "xxx xxx xxx. "It may be advised, however, that the rectification of the said erroneous assessments can be made during the conduct of the next general revision of real property assessments thereat. That Office is further advised to exert extra effort in securing other pertinent documents/data in support of the market values indicated by the real property owners concerned in their Sworn Statements, to avoid the occurrence of similar problems in the future." Similarly, this Bureau is of the opinion that the rectification of the erroneous assessments on the subject properties previously made by that Office would be considered illegal in view of the once-every-three-years rule provided under Sec. 220 of the Code. IEDaAc It is worth mentioning that sending of Notice of Assessment (together with a copy of Tax Declaration) by the Assessor is of paramount importance for the purpose of giving effect to the assessment made by the Assessor, without which the taxpayer concerned cannot resort to applicable remedies under the law. In view hereof, this Bureau is of the opinion that PTVTC should be allowed to pay their real property tax based on Tax Declaration Nos. EB-017-00004 to EB-017-00007 and not on Tax Declaration Nos. EB-017-00030 to EB-017-00033 on the basis of our discussions. Be guided accordingly. Very truly yours, (SGD.) MA. PRESENTACION R. MONTESA Executive Director