Clarification on the Opinions of the DOF and DILG Regarding the Authority of the Provincial Assessor

July 21, 1997 DILG LEGAL OPINION NO. 082-97 MR. JOSE PALMARES, JR. Municipal Assessor Passi, Iloilo Dear Mr. Palmares : This has reference to your earlier letter, seeking clarification as to the issues raised therein. It is represented that the Provincial Assessor of Iloilo issued an Office Order limiting the authority of the Municipal Assessor of that municipality in approving and issuing appraisal and assessment of real property. More specifically, the latter are only authorized to approve and issue tax declarations resulting from simple transfers and assessment of real properties, the assessed value of which does not exceed Fifty Thousand (P50,000.00) Pesos. The said Office Order was issued pursuant to the opinion rendered by the Department of Finance in response to the query posed by the Provincial Assessor of Baler, Aurora, dated 06 December 1994, to the effect that only Provincial Assessors are authorized to approve/issue tax declarations and may delegate to the Municipal Assessor within his jurisdiction the approval/issuance of tax declarations with certain limitations. LLpr This Department, however, had rendered an earlier opinion concerning the aforesaid subject matter to the effect that Provincial Assessor exercises merely technical supervision, and not control, over all component city or municipal assessors in reply to the query as to whether or not real property assessment of city or municipal assessors are subject to the approval of the provincial assessor. Hence, you now want to be clarified the seemingly conflicting views. At the outset, we would like to inform you that this Department does not have any revisory power or authority over the acts of a co-equal and coordinate body like that of the Department of Finance (DOF). But nonetheless, for whatever it may be worth, with due respect to the opinion of the DOF, this Department clarifies the foregoing. The opinion of the DOF is primarily anchored on Article 291 of the Local Government Code of 1991 (RA 7160), which provides that: "ART . 291. Administration of Real Property Tax . The provinces and cities, including municipalities within MMA, shall be primarily responsible for the proper, efficient and effective administration of the real property tax subject to the rules and regulations governing the classification, appraisal and assessment of real property issued by DOF. The DOF and the province shall exercise the authority to review and examine on a continuing basis property , assessment , and real property tax records to ensure the proper implementation of the Rule and determine compliance with existing laws and regulations ." (Emphasis supplied) Let it be noted that the second paragraph of the preceding provision have emphasis on the authority of the DOF and the province to review and examine real property assessment and tax records and thus ensuring proper implementation and administration of real property tax. We believe that such an authority vested upon the province should be read in conjunction with Section 472 (b) (12) of RA 7160 (The Local Government Code of 1991),which provides, thus: prLL "SEC. 472. (b) The assessor shall take charge of the assessor's office, perform the duties provided for under Book II of this code and shall: xxx xxx xxx (12) In the case of the provincial assessor, exercise technical supervision and visitorial functions over all component city and municipal assessors , coordinate with component city or municipal assessors in the conduct of tax mapping operations and all other assessment activities, and provide all forms of assistance therefor: Provided, however, That, upon full provision by the component city or municipality concerned to its assessor's office of the minimum personnel, equipment, and funding requirements as may be prescribed by the Secretary of Finance, such functions shall be delegated to the said city or municipal assessor, . . . ." (Emphasis supplied) The authority to review, therefore, is in pursuance of the power of the provincial assessor to exercise technical supervision over component city and municipal assessor and coordinate with them in all assessment-related matters. The power to approve/issue tax declarations presupposes control on account of such power necessarily includes the power to disapprove as the same also connotes the power to review, modify, alter, nullify or affirm subordinate's act or acts. Authority to review in the next immediately preceding premise is to be taken in its narrowest sense of the word because the power of the provincial assessor to review is limited to technical supervision only. As held in "Ganzon v. C.A., et al., 200 SCRA 271, 283 (1991), citing Mondano v. Silvosa, 97 Phil. 143, 1348, the Supreme Court said that control is different from supervision in that the former is the power of an officer to alter or modify or nullify or set aside what a subordinate officer had done in the performance of his duties and to substitute the judgment of the former to that of the latter. Moreover, the Department of Finance, under its letter dated 15 October 1992, ruled as follows: ". . . the provincial assessor, prior to the effectivity of the Local Government Code of 1991, has the authority to approve/issue tax declarations, and to delegate the said function, with certain limitations, to the municipal assessors within his jurisdiction. In view of the foregoing and in the absence of any specific provision in the Local Government Code of 1991 and its implementing regulations , categorically stating as to who is authorized to perform such function , this Department maintains the view that, it is still the Provincial Assessor who has the authority to determine whether or not municipal assessors within his territorial jurisdiction may be authorized to approve tax declarations covering real properties within their respective municipalities." (Emphasis supplied) A reading of Section 472 of the Code (RA 7160) would give us the impression that the office of the assessor (mandatory position for provincial, municipal and city level) shall perform the duties and functions pertaining to local taxation and fiscal matters. Paragraph b, subparagraph 7 of the same section vests upon the assessor to exercise the functions of appraisal and assessment primarily for taxation purposes of all real properties in the local government unit concerned. Thus, under Section 226 of the same Code provides for a remedy to any owner or person having legal interest in the property who is not satisfied with the action of municipal assessor to appeal to the Board of Assessment Appeals and not to Provincial Assessor. pred Hoping to have enlightened you on the matter. Very truly yours, (SGD.) MANUEL R . SANCHEZ Undersecretary Department of Interior and Local Government