Bureau of Local Government Finance Opinion

March 13, 2001 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Director Gloria J. Fabia Bureau of Land Acquisition and Distribution (BLAD) Department of Agrarian Reform (DAR) Elliptical Road, Diliman Quezon City M a d a m : This refers to your letter dated March 12, 2001 requesting comments relative to the proposed Joint Circular to address the concerns which have been taken-up during the March 9, 2001 meeting held in that Office. While we find the same to be appropriate to, among others, provide assistance to our local treasurers in collecting delinquent realty taxes against the subject real properties, we find it necessary to further include such issues as follows: 1 The representations of DAR to secure the landowners' realty tax liability from the treasurer, for purposes for apportioning the same among the farmer-beneficiaries (FBs) proportionately, should include the listing of FBs and their corresponding areas and location (preferably thru approved subdivision plans or other similar documents) within a specific property subject of Voluntary Land Transfer/Direct Payment Scheme, which should, likewise, be furnished the Office of the Assessor; 2. A separate, Compromise Agreement should be executed by and between the Treasurer concerned and each and every FB, which shall be based on the Agreement executed by the landowners and the former beneficiary pursuant to Item V(A)(3) of Administrative Order No. 08; 3. In case of FBs' default in any of the installment payment corresponding to the landowners' delinquencies, the ADMINISTRATIVE REMEDIES, in accordance with R.A. No. 7160, shall be applied; and 4. Subsequently, upon acknowledgement by FBs of the landowners liability to pay thru the execution of the necessary "Agreement", the delinquent taxes, separate tax declarations should then be issued by the assessor on the basis of documents which DAR furnished as indicated in Item 1 above, in favor of the FBs, at least as administrators, while ownership thereof is still retained by the landowner until the CLOA shall have been finally issued in favor of the beneficiaries. EACIcH Trusting that the foregoing observation/recommendation will merit your abovementioned request for possible incorporation to the proposed/draft Joint Circular. Very truly yours, (SGD.) BENJAMIN A. GERONIMO Executive Director