Whether the Province of Rizal is still Entitled to Share in the Real Property Taxes Collected by the City of Antipolo

January 12, 2000 DILG LEGAL OPINION NO. 006-00 Hon. Gaudencio A. Mendoza, Jr . Assistant Executive Secretary for Legal Affairs Office of the President Malacaang, Manila RE : His Indorsement dated January 11, 2000, requesting for appropriate action regarding the conflicting positions taken by Representative Victor R. Sumulong of Antipolo City and Governor Casimiro M. Ynares of Rizal on the issue of whether or not the Province of Rizal is still entitled to share in the real property taxes collected by the City of Antipolo after the date when the Cityhood of Antipolo was ratified in a plebiscite by a majority of its duly registered voters. S i r : At the outset, we would like to inform your good office that in view of the conflicting positions respectively taken by Rep. Victor Sumulong and Gov. Casimiro Ynares, the matter was initially referred to the Oversight Committee for possible resolution. Nonetheless, in deference to but without necessarily pre-empting the said Committee, may we just submit our position/opinion thereon. In reply to the above-captioned issue, it is our considered view that, notwithstanding the cityhood of Antipolo on April 4, 1998, the proceeds from the collection of the real property tax for 1998 should still accrue to the Province of Rizal. This is so because the real property tax for any year accrues on the first day of January and from that date, it shall constitute a lien on the property which shall be superior to any other lien (Section 246, Local Government Code of 1991 [RA 7160]). The collection in four (4) installments does not mean that the City of Antipolo is entitled to the taxes for the third and fourth installments because, as herein stated, the real property tax had already accrued on the first day of January 1998, albeit the same may be collected in four installments. In that regard, distinction has to be made between "accrual of tax" and "time for payment", the former referring to the tax becoming due or to begin to have existence. Hence, the accrual of the tax refers to the time it becomes due and collectible. On the other hand, the time for payment of tax refers to the date when the tax is payable without penalty, beyond which the tax is subject to surcharges and penalties for late payment (Ursal, Local Government Taxation, 1992, p. 388). Corollarily, pursuant to Section 232 of the Local Government Code of 1991 (RA 7160), the real property tax is an imposition of provinces, cities and the municipalities within the Metropolitan Manila Area. Considering that taxes collected accrue exclusively to the local government unit that imposes it, the real property tax for FY 1998 would thus accrue exclusively to the taxing authority the Province of Rizal under which jurisdiction the former municipality of Antipolo belongs. Be that as it may, the proceeds of the basic real property tax, including interests thereon, should be distributed among the province, municipality and barangay where the real property is located in accordance with the sharing provided for under Section 271 of the Local Government Code. ETIDaH The power to levy the real property tax for FY 1999 and thereafter belongs to the City of Antipolo which shall accrue exclusively to said city and to be distributed as follows: seventy percent (70%) to the general fund of the city and thirty percent (30%) to be shared equally among the component barangays of the city where the property is located (Sec. 271, RA 7160). We hope to have clarified the matter accordingly. Very truly yours, (SGD.) ALFREDO S. LIM Secretary Department of Interior and Local Government