Bureau of Local Government Finance Opinion

October 9, 1998 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 4th Indorsement Respectfully returned thru the Regional Director for Local Government Finance, Department of Finance, Region XI, Helen K. Lee Bldg., Corner Juan Luna and Juan dela Cruz Streets, Davao City, to the Provincial Assessor, Koronadal, South Cotabato, the within Resolution No. 01, series of 1998, of the South Cotabato Assessors Association, requesting the deferment of the purported 1999 general revision of real property assessments, in pursuance of Section 219 of R.A. No. 7160, otherwise known as the Local Government Code of 1991, which provides: "Sec. 219. General Revision of Assessments and Property Classification . The provincial, city or municipal assessor shall undertake a general revision of real property assessments within two (2) years after the effectivity of this Code and every three (3) years thereafter." Apparently, the reasons/contentions that prompted the Association to elevate their abovementioned request to this level are as follows: 1. That "for the next two (2) years or so, taxpayers, particularly the farmers, will not be able to recover from the ill-effects of the El Nio and the upcoming La Nia phenomena;" 2. The failure of the Sangguniang Panlalawigan of South Cotabato to enact an ordinance imposing fines and penalties against non or late filers of sworn declaration resulted in the low turn-out of sworn statement filers, thus, it does "not warrant a wider range (of data needed) in the preparation of the Schedule of Market Values;" 3. Financial dislocation of "almost all municipalities in the province of South Cotabato;" HSaIDc 4. The directive under the Office of the President's Administrative Order No. 372, dated December 27, 1997 for the "adoption of economy measures" effective January, 1998. Before anything else, it is worthwhile to emphasize herein that, under BLGF Memorandum Circular No. 04-95 dated March 22, 1995 (copy enclosed) of this Bureau, clarifications have been made that: '. . . the conduct of general revision of real property assessments within two (2) years from the effectivity of the Code is mandatory, and in cases where revaluation of properties were conducted, the Provincial or City Assessor concerned may devise the Sangguniang Panlalawigan or Panlungsod that it is likewise mandatory to enact/approve a new Schedule of Market Values for purposes of conducting the initial revision of real property assessments mandated under the Code. 'As to the sanctions for those who did not undertake the general revision of real property assessments, for one reason or another, attention is invited to Section 517 of the Code, . . .' Anent Item I, such occurrences affecting real property (partial or total destruction, change in actual use, or any great and sudden inflation or deflation of real property values or to any abnormal causes) could be properly addressed to by the provisions of Section 221 of the Code which reads: "SEC. 221. Date of Effective 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." HICSaD Whenever, therefore, that any of the abovecited occurrences arises, such as the sudden inflation or deflation of property values which might be brought about by the abovementioned phenomena, reassessments of affected properties is, of course, inevitable and such action is well supplemented by the provisions of Sec. 214 of the Code, which provides: "SEC. 214. Amendment of Schedule of Fair Market Values . The provincial, city or municipal assessor may recommend to the sanggunian concerned amendments to correct errors in valuation in the schedule of fair market values. The sanggunian concerned shall, by ordinance, act upon the recommendation within ninety (90) days from receipt hereof." As regards Item No. 2, it is important to note that Assessment Regulations No. 1-92, dated October 6, 1992 of the Department of Finance, prescribed the different "Approaches to Value" for which a Schedule of Market Values may be established by concerned Provincial or City Assessors, or Municipal Assessors of municipalities within the Metropolitan Manila Area. Hence, sole reliance to the Sworn Declarations that taxpayers ought to file pursuant to the provisions of the Code, is not really an acceptable excuse for which a Schedule of Market Value could not be prepared. As to the third issue, it is believed that the problem on "financial dislocation" could not be remedied by not conducting the general revision work. Rather, it might even turn out to be the solution. Lastly, the economy measures that Executive Order No. 372 is referring to does not certainly mean that, in its compliance, the provisions of existing laws, in this particular case Section 212 of R.A. No. 7160, may be disregarded. It is, likewise, necessary to point out, in this connection, that the contention of that Association that "(N)owhere in the Code provides that the conduct of general revision can be deferred unless the President of the Republic of the Philippines so declares through the Department of Finance ," is unfounded (emphasis supplied). That Association is probably referring to the provisions of Section 277 of the Code on the "Condonation or Reduction of Tax by the President of the Philippines." ITADaE The Provincial Assessor, therefore, is hereby given instructions to furnish the president of the South Cotabato Assessors Association with a copy hereof for their information and guidance. (SGD.) ANGELINA M. MAGSINO Deputy Executive Director Officer-in-Charge