Powers, Functions and Duties of a Provincial Assessor vis-a-vis the Municipal Assessor

August 29, 1997 DILG LEGAL OPINION NO. 096-97 MAYOR DANIEL S. GARCIA Antipolo, Rizal Dear Mayor Garcia : This has reference to your letter, seeking our legal opinion regarding the powers, functions and duties of a Provincial Assessor vis-a-vis the Municipal Assessor in the light of Sections 201 and 472 of the Local Government Code of 1991 and Articles 122 and 291 of its Implementing Rules and Regulations. The controversy arose when on 08 April 1997, the Provincial Assessor of Rizal issued a Memorandum to all Municipal Assessors thereat directing strict compliance to Office Order No. 86-05 dated 09 October 1986 providing for the revised procedure to be followed by Deputy Provincial and Municipal Assessors in the submission of appraisal reports for approval by the Provincial Assessor and interlink examination regarding control and maintenance. Said Office Order specifically provides for the procedures on the recording of New Assessments and Revision of Assessments and likewise on the examination, control recording and maintenance of appraisal reports. cdpr Upon your request for legal opinion on the propriety of said Office Order No. 86-05 in view of the enactment of the Local Government Code, the Municipal Legal Officer thereat opined that "the directive of the Provincial Assessor of Rizal directing the Municipal Assessors of the province to submit appraisal reports 'for approval' is an exercise of the power of control and is in excess of the power of 'technical supervision' which was what was given to him by law". By reason thereof, you issued a Memorandum advising your Municipal Assessor to be guided by the provisions of the Local Government Code of 1991 and the opinion rendered by the Municipal Legal Officer in the discharge of his functions, duties and powers as such. Reacting to your Memorandum, the Provincial Assessor then wrote the Governor of Rizal saying that the issue on who is authorized to approve tax declaration has long been settled by the Department of Finance as can be gleaned from a letter dated 15 October 1992 of Undersecretary Ma. Cecilia G. Soriano, by Authority of the Secretary, Department of Finance, the dispositive portion of which is quoted hereunder as follows: "In view of the foregoing, and in the absence of any specific provision in the Local Government Code of 1991 and its Implementing Rules and 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." To settle the conflicting views on the matter, you sought the legal opinion of the Department of Justice which, in its 08 May 1997 letter, however, advised you to direct the query to the Oversight Committee created under the Local Government Code of 1991 or to the Department of the Interior and Local Government being the lead agencies tasked in the interpretation and application of the provisions of the Local Government Code. Hence, this query. Though, as a matter of sound public policy, we do not normally disturb declarations, more so on legal issues, rendered by another Department of the government in deference of and out of due courtesy to its prerogatives as mandated by law, we are, however, constrained to rendered our opinion herein, the matter/issue having been thrown to us by the Department of Justice for being within the primary jurisdiction of the Department. Hence, to start with, we might as well identify what the issue to be resolved herein, to wit: whether or not the actions of the municipal assessors, particularly in recording appraisals and assessments, and the corresponding issuance of the tax declarations are subject to the approval of the Provincial Assessor. We rule in the negative. May we then take a careful examination of the herein subject Office Order No. 86-05. As aptly observed by the Municipal Legal Officer thereat, said Office Order was issued under the provisions of the then existing real property Tax Code (PD 464). Said Tax Code, however, was expressly repealed by Section 534 (c) of the Local Government Code of 1991 which, in part, provides: ". . . and Presidential Decree Nos. . . . 464 . . . are hereby repealed and rendered of no forced and effect". Thus, said Office Order having been issued pursuant to a law already repealed, likewise losses its legal basis to stand on. It is equally important to note further that under PD 464, assessors were national officials under the Department of Finance and municipal assessors were mere deputies of the provincial assessors and thus, their actions were then properly placed under the control of the provincial assessors. This set-up is no longer true under the new Local Government Code since under Section 472 thereof, the position of assessors are already made mandatory for provinces, cities and municipalities. Thus, in line with the constitutionally enshrined policy on local autonomy where local government units enjoys full autonomy from the national government, and that of each other, thereby affording them the opportunity to chart their own destiny, a provincial assessor likewise should not be allowed to exercise control over municipal assessors for if it be allowed, it would clearly be violative of the much avowed policy of local autonomy. With regard to the powers, duties and functions of assessors, Section 472 of the Local Government Code provides for the same which were further specified and delineated in Book II of the same Code, particularly Sections 197-225 thereof, inclusive. Hence, as to the collateral issue on whether or not a municipal assessor has the power to issue/approve tax declarations, with due respect, we are not, however, quite agreeable to the findings that there is no such provision of the local Code nor of its Implementing rules which categorically provides for such authority. On the contrary, may we hereunder partly quote the provision of Section 202 of the Local Government Code, thus: "It shall be the duty of all persons ...owning or administering real property ...within a city or municipality ...to prepare or cause to be prepared, and file with the provincial, city or municipal assessor, a sworn statement declaring the true value of their properly ...which shall be the current and fair market value of the property as determined by the declarant." In relation thereto, Article 290 of the Rules Implementing the local Code provides, thus: " Fundamental Principles . The appraisal, assessment, levy and collection of real property tax shall be governed by the following fundamental principles: (a) Real property shall be appraised at its current and fair market value; xxx xxx xxx (b) Real property shall be assessed on the basis of a uniform classification within each LGU; ..." Therefore, being more apprised on matters affecting local applications within his area of jurisdiction, a municipal assessor is considered to be in the best position in the recording of appraisals and assessments of real properties and the issuance of corresponding tax declarations therefor based on the classification given. Moreover, Article 291 of the Implementing Rules of the local Code should not be construed beyond its context and legislative intent. It provides, in part, thus: "The Department of Finance 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 this Rule and determine compliance with applicable laws, rules and regulations ". The underlined phrase connotes merely supervision and not control. In which case, the provincial assessor cannot change not substitute his own judgment with that of the municipal assessor for if that would be allowed, the provincial assessor would then be exercising control which would run counter to the provisions of paragraph (12), Section 472 of the same Code, providing that provincial assessors "shall 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 assessment activities, and provided all forms of assistance". LLphil In view of the foregoing and likewise on our earlier opinion, DILG Opinion No. 38 dated 07 March 1997, copy of which is hereto attached for reference, dealing on a similar issued, we hereby reiterate our earlier considered view that the provincial assessors merely exercise technical supervision, visitorial functions and coordination with all component city and municipal assessors to ensure that their duties and functions were performed faithfully in accordance with applicable laws. We hope to have enlightened you thereon. Thank you and warm regards. Very truly yours, (SGD.) MANUEL R. SANCHEZ Undersecretary Department of Interior and Local Government